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Crowdstrike surges as profit guidance hiked higher, adds cloud cybersecurity acquisition

Published 06/03/2024, 12:07
Updated 06/03/2024, 12:43
Crowdstrike surges as profit guidance hiked higher, adds cloud cybersecurity acquisition
CRWD
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Proactive Investors - CrowdStrike Holdings Inc (NASDAQ:CRWD) swarmed up 24% in premarket trading after revenue and earnings guidance was upgraded afterhours, and it announced a deal to acquire Flow Security.

The cybersecurity group said the addition of Flow, the industry’s "first and only cloud data runtime security solution", would strengthen its capabilities in the electronic ether.

It reported a fourth profitable quarter in a row, with GAAP earnings per share of $0.22 in the three months to 31 January, its fiscal fourth quarter, versus a $0.20 loss per share a year earlier. Adjusted EPS increased to $0.95 from $0.47 a year ago.

Management of the Austin, Texas-based company reiterated a 2030 goal of $10 billion in annual recurring revenue, with revenue in the current 2025 fiscal year of between $3.92 billion and $3.99 billion,.

For the first quarter, it guided to revenue of between $902.2 million and $905.8 million, beating Wall Street forecasts of $899.3 million, per LSEG data.

Guidance was for adjusted EPS of $3.77-3.97, better than analyst estimates of $3.75.

On the new purchase, co-founder and CEO George Kurtz said: “CrowdStrike was born in the cloud and pioneered cloud-native cybersecurity... With the acquisition of Flow Security, we’re expanding our cloud leadership by protecting data in all states as it flows through the cloud, and are redefining the future of data protection by securing data from code, to application, to device and cloud.”

Read more on Proactive Investors UK

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