CrowdStrike stock rises after better-than-feared results

CrowdStrike Holdings (NASDAQ:CRWD) reported better-than-expected second-quarter results, with the cybersecurity firm's stock rising 2% in after-hours trading on Tuesday.

The company posted adjusted earnings per share of $1.04, surpassing analyst estimates of $0.97. Revenue for the quarter reached $963.9 million, exceeding the consensus forecast of $958.32 million and marking a 32% YoY increase.

CrowdStrike's Annual Recurring Revenue (ARR) grew 32% YoY to $3.86 billion, with $217.6 million in net new ARR added during the quarter. The company's subscription revenue, which forms the bulk of its top line, rose 33% YoY to $918.3 million.

CEO George Kurtz highlighted the company's resilience, stating, "Our second quarter demonstrates the resilience of our business and platform – with LogScale Next-Gen SIEM, Identity Protection, and Cloud Security eclipsing $1 billion in combined ending ARR."

Despite the strong quarterly performance, CrowdStrike's full-year guidance came in below analyst expectations.

The company forecasts FY2025 adjusted EPS of $3.61-$3.65, below the consensus of $3.88, and revenue of $3.89-$3.9 billion, short of the $3.95 billion analyst estimate.

CrowdStrike attributed part of the guidance to an estimated $30 million subscription revenue impact in each of the remaining fiscal quarters due to customer incentives.

The company's cash position remains strong, with $4.04 billion in cash and cash equivalents as of July 31, 2024.

CrowdStrike also reported record Q2 operating cash flow of $326.6 million and free cash flow of $272.2 million.