CrowdStrike stock fell Wednesday in reaction to its second-quarter results that handily beat estimates on the top and bottom lines. The CRWD earnings report was announced late Tuesday.
CRWD stock fell 6.5% to 180.75 during afternoon trading on the stock market today.
The cybersecurity software company reported adjusted earnings of 36 cents a share on revenue of $535.2 million. Analysts expected CrowdStrike to report earnings of 28 cents on revenue of $516 million, according to FactSet. Revenue grew 58% from the year-ago quarter.
In addition, the company reported annual recurring revenue, or ARR, of $2.14 billion. Analysts expected $2.11 billion, up 59%. Analysts consider ARR a key metric in CrowdStrike results, as it links to subscription customer growth.
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The company estimates third-quarter revenue will be in the range of $569 million to $575.9 million. The midpoint of $572.45 million is above estimates of $569.2 million.
CRWD Stock: New Milestones Across Business
"CrowdStrike delivered a strong second quarter with new milestones across the business," Chief Executive George Kurtz said in written remarks with the CrowdStrike earnings release.
Chief Financial Officer Burt Podbere added, "CrowdStrike delivered robust growth at scale and exceptional unit economics with over 80% year-over-year growth in operating and free cash flow."
CRWD stock has an IBD Composite Rating of 84 out of a best-possible 99, according to IBD Stock Checkup.
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