CrowdStrike exceeds expectations with strong profit boost, but disappoints with cautious forecast

CrowdStrike achieves strong results in the third quarter, but cautious forecasts dampen investor enthusiasm.

11/29/2024, 3:23 PM
Eulerpool News Nov 29, 2024, 3:23 PM

CrowdStrike, the leading provider of cybersecurity solutions, recorded a remarkable profit increase in the third quarter of its fiscal year 2025. The adjusted earnings per share (EPS) climbed from $0.11 to $0.93, significantly exceeding analyst expectations of $0.81. Nevertheless, the GAAP net loss was $16.8 million or seven cents per share, compared to a net profit of $26.7 million in the previous year.

Revenue rose by 29 percent to $1.01 billion, exceeding forecasts of $982.8 million. However, growth slightly slowed compared to previous quarters. CrowdStrike had liquid funds of $4.26 billion at the end of the quarter, an increase from the previous quarter.

CrowdStrike's CFO Burt Podbere emphasized in a statement the company's strong operational execution and financial discipline. These helped address the expected challenges following a faulty software update in July that affected computer systems worldwide. "Our focused execution led to an increase in order intake compared to the previous quarter," said Podbere.

Despite the positive quarterly results, the stock showed weaker performance on NASDAQ and fell by 4.59 percent to 347.59 USD. Investors reacted disappointedly to the company's cautious forecast for the fourth quarter. CrowdStrike anticipates revenues of 1.029 to 1.035 billion USD, just slightly above the consensus estimate of 1.03 billion USD. The adjusted earnings per share are expected to be between 84 and 86 cents, which is at the lower end of analysts' estimates of 86 cents.

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