CrowdStrike Stock Is Rising Wednesday: What's Going On?

Zinger Key Points
  • CrowdStrike reports first-quarter revenue of $921 million, beating the consensus estimate of $904.66 million.
  • CrowdStrike reports adjusted earnings of 93 cents per share, beating analyst estimates of 89 cents per share.

Shares of cloud-based cybersecurity company CrowdStrike Holdings Inc CRWD are trading higher Wednesday on the heels of the company’s first-quarter results. Here’s what you need to know.

  • Q1 Revenue: $921 million, versus estimates of $904.66 million
  • Q1 EPS: 93 cents, versus estimates of 89 cents

Total revenue was up 33% on a year-over-year basis. Annual recurring revenue also increased 33% year-over-year to $3.65 billion after the company added $211.7 million of net new ARR in the first quarter. Net cash generated from operations was $383.2 million and free cash flow came in at $322.5 million. CrowdStrike ended the quarter with $3.7 billion in cash, equivalents and short-term investments.

“The Falcon platform's differentiated architecture creates a wide competitive moat and uniquely enables CrowdStrike to solve the industry's biggest cybersecurity, IT and data problems,” said George Kurtz, co-founder, president and CEO of CrowdStrike.

Guidance: CrowdStrike sees second-quarter revenue in the range of $958.3 million to $961.2 million versus estimates of $954.43 million. The company anticipates second-quarter adjusted earnings of 98 cents to 99 cents per share versus estimates of 91 cents per share.

CrowdStrike also raised guidance for fiscal-year 2025. The company anticipates total revenue of $3.976 billion to $4.011 billion versus estimates of $3.97 billion. The company now sees fiscal-year 2025 earnings in the range of $3.93 to $4.03 per share versus estimates of $3.91 per share.

Following the company’s quarterly results, Needham analyst Alex Henderson reiterated CrowdStrike with a Buy rating and maintained a price target of $425. Rosenblatt maintained a Buy rating and raised its price target to $420, while BTIG maintained a Buy rating and lowered its price target to $402.

What Else: CrowdStrike on Wednesday announced Falcon for Insurability, a new program allowing cyber insurers to provide organizations with cyber protection from the AI-native CrowdStrike Falcon platform.

“As cybersecurity’s leader, CrowdStrike understands the nuances of cyber insurance, and we have a team dedicated to working with the cyber insurance community. Our AI-native cybersecurity platform is increasingly important not only to the security of the organization, but also its insurability,” said Daniel Bernard, chief business officer of CrowdStrike. 

CrowdStrike also issued press releases Wednesday morning announcing that it has been named a leader in The Forrester Wave: Extended Detection and Response Platforms second-quarter report, and announcing partner award winners for its regional and national partners.

See Also: Exclusive: Apple Supplier’s Subsidiary Behind Supercomputer Donated To OpenAI Predicts AI Server Sales Tripling To Over $31B Next Year

CRWD Price Action: CrowdStrike shares were up 11.3% at $340 at the time of publication, according to Benzinga Pro.

Photo: Shutterstock.

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