HomeBusinessCrowdStrike earnings are correct. Here's Why CRWD Stock Jumped

CrowdStrike earnings are correct. Here’s Why CRWD Stock Jumped

CrowdStrike Holdings (CRWD) on Tuesday reported fourth-quarter earnings and revenue that topped analyst estimates. CrowdStrike shares jumped as the cybersecurity company’s fiscal year 2025 expectations came in above expectations.




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In today’s stock market, CrowdStrike stock rose 15.4% to 343.50 in extended trading. Shares fell 5.2% during Tuesday’s regular session.

Meanwhile, CrowdStrike revenues for the fourth quarter rose 102% to 95 cents per share, on an adjusted basis. Revenue, including acquisitions, rose 33% to $845.3 million.

Meanwhile, analysts surveyed by FactSet had forecast earnings of 82 cents per share on revenue of $839 million for the period ending Jan. 31.

A year earlier, the Sunnyvale, California-based company earned 47 cents per share on revenue of $637.4 million.

CrowdStrike Stock: Focus on Recurring Revenue

With CrowdStrike, Wall Street is focusing on annual recurring revenue, or ARR. It is an important financial metric related to the growth of subscription services.

In the fourth quarter, ARR rose 34% to $3.44 billion. Analysts had forecast ARR of $3.39 billion.

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For fiscal 2025, which begins with the current quarter ending in April, CrowdStrike forecast revenue of $3.957 billion at the midpoint of its guidance, compared with estimates of $3.942 billion.

The CrowdStrike earnings report shows that CRWD stock is up 22% year to date in 2024. According to IBD Stock Checkup, CRWD stock had an IBD Relative Strength Rating of 97 out of a best possible 99.

The company also uses machine learning, a form of artificial intelligence, in its products. Meanwhile, it uses a specialized database to detect malware on laptops, mobile phones and other devices that access corporate networks.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

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