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StockBeat - CrowdStrike Shows Cybersecurity Prowess in Maiden Results; Shares Jump

Published 19/07/2019, 19:29
Updated 19/07/2019, 20:43
© Reuters.

Investing.com - CrowdStrike soared Friday as traders cheered the cybersecurity company's upbeat outlook and revenue that more doubled in the fiscal first quarter from a year earlier.

CrowdStrike said it expects a loss of 24 to 23 cents per share in its fiscal second quarter on $103 million to $104 million in revenue. That would represent a marked improvement from results in the fiscal first quarter. CrowdStrike (NASDAQ:CRWD) jumped 16%.

The cybersecurity company delivered a loss of $0.47 a share in the quarter, in line with consensus estimates from Investing.com, while revenues of $96.1 million, up from $47.3 million a year earlier, slightly exceeded estimates of $95.6 million.

The jump in revenue during the quarter was supported by a surge in subscription growth.

Subscription revenue grew 116% to $86 million for the quarter from a year earlier, with annual recurring revenue jumping 114% to $364.6 million.

In the run-up to the company's quarterly results, analysts expressed optimism in the growth story of the company, expecting it to continue to take market share from competitors.

“With best in class unit economics and a large addressable market, we believe CrowdStrike will continue to take market share from a long-tail of competitors,” Goldman Sachs said in a note to clients.

Goldman was not alone in its bullish assessment of the company’s prospects.

Bank of America Merrill Lynch recently hailed CrowdStrike as a “dominant force” in endpoint security, while Needham called the company “one of the premiere native cloud security platforms.”

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Shares of the cloud-based cybersecurity company began trading on June 11 to much fanfare and rallied nearly 71% on the day.

The company went public at $34 a share. At its current price, the stock is up 147% since.

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