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CrowdStrike shares rip higher as ARR accelerates in Q4; Announces acquisition of Flow Security

AInvestTuesday, Mar 5, 2024 4:27 pm ET
1min read

CrowdStrike, a leading cybersecurity company, has released its earnings report for the fourth quarter of fiscal year 2024. The company reported impressive financial results, exceeding expectations and demonstrating strong growth in various key metrics.

In terms of earnings per share (EPS), CrowdStrike reported $0.95 per share, excluding non-recurring items. This beat expectations of $0.82 per share by a margin of $0.13. This positive performance reflects the company's ability to generate sustainable profitability in a highly competitive industry. Revenues for the quarter increased by 32.6% year-over-year, reaching $845.3 million, surpassing consensus estimate of $839.13 million. The growth in revenue underscores the demand for CrowdStrike's cybersecurity solutions as organizations seek robust protection against evolving threats.

The company's annual recurring revenue (ARR) increased by 34% year-over-year, reaching $3.44 billion, and net new ARR growth accelerated to 27% year-over-year, reaching a record $282 million. Additionally, CrowdStrike achieved record GAAP and non-GAAP net income, further solidifying its financial strength.

The company has also announced its intention to acquire Flow Security, a cloud data runtime security solution provider. This acquisition will enable CrowdStrike to expand its cloud security leadership by incorporating data security posture management capabilities into its Falcon platform. The purchase price will be paid predominantly in cash, with a portion delivered in the form of equity subject to vesting conditions. The proposed acquisition is expected to close during CrowdStrike's fiscal first quarter, subject to customary closing conditions.

Looking ahead, CrowdStrike provided upbeat guidance for the first quarter of the fiscal year. The company expects EPS in the range of $0.89 to $0.90, ahead of the consensus estimate of $0.82. Additionally, CrowdStrike anticipates revenue between $902.2 million and $905.8 million, slightly exceeding expectations of $899.53 million. These positive projections indicate the company's confidence in its ability to sustain its growth trajectory. CrowdStrike also shared guidance for the full fiscal year 2025. The company expects EPS in the range of $3.77 to $3.97compared to estimates of $3.76. Additionally, CrowdStrike forecasts revenue between $3.925 billion and $3.989 billion, in line with expectations..

CrowdStrike's Q4 earnings report demonstrates the company's continued growth and financial strength. The acquisition of Flow Security further solidifies the company's position as a leader in the cybersecurity industry, and the company's guidance for the upcoming quarters and fiscal year is optimistic. With a strong focus on innovation and expansion, CrowdStrike is well-positioned to continue delivering value to its shareholders and customers.

Shares of CrowdStrike soared more than 15% in after-hours action following the report.


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