CrowdStrike Holdings (CRWD) on Wednesday reported July-quarter earnings and revenue that topped Wall Street estimates. Meanwhile, cybersecurity peer Okta delivered a bigger beat. CRWD stock dipped while OKTA stock soared.
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CrowdStrike earnings for its fiscal second quarter jumped 105% to 74 cents a share on an adjusted basis. Revenue, including acquisitions, climbed 37% to $731.6 million.
Analysts polled by FactSet had projected earnings of 56 cents a share on revenue of $724 million for the period ended July 31.
A year earlier, the Sunnyvale, Calif.-based firm earned 36 cents a share on revenue of $535 million.
But CrowdStrike stock initially rose on the earnings report, then reversed down in extended trading. CRWD stock dropped 1.2% to 147.42 in recent action on the stock market today.
CRWD Stock: Focus On Recurring Revenue
With CrowdStrike, Wall Street focuses on annual recurring revenue, or ARR. It’s a key financial metric tied to subscription services growth. During the July quarter, ARR increased 37% to $2.93 million. Analysts had predicted ARR of $2.92 billion.
For the current quarter ending in October, CrowdStrike forecast revenue of just under $770 million at the mid-point of guidance. That missed estimates of $774 million.
Meanwhile, Okta reported profit of 34 cents, up from a 10-cent loss in the year earlier period. Revenue rose 23% to $556 million.
Analysts that follow OKTA stock had predicted 22-cent profit on revenue of $535 million. OKTA stock popped 11.6% to 82.13
Heading into the CrowdStrike earnings report, CRWD stock had climbed 40% thus far in 2023. But CRWD stock owned an IBD Relative Strength Rating of only 38 out of a best-possible 99, according to IBD Stock Checkup.
CrowdStrike stock has been hugging its 50-day moving average.
The company 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 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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