CrowdStrike Shares Move Higher on Q3 Beat

CrowdStrike, which went public this past summer, saw its shares heading higher on Thursday after the company beat in its third quarter financial report.

The cybersecurity technology company based in Sunnyvale, California, reported better-than-expected results for the fiscal third quarter of 2020.

Wall Street was also cheering that the company raised its guidance for the full year and that it said it expects to be free cash flow positive beginning in fiscal 2021.

CrowdStrike beat on both the top and bottom lines and was up as much as 3.5% late in the afternoon.

For the quarter, the company reported a loss per share: 7 cents vs. 11 cents expected, per Refinitiv estimates. Revenue at $125.1 million was better than the $118.8 million expected, per Refinitiv

Looking ahead, CrowdStrike raised its guidance for fiscal 2020 and now expects to report revenue in the range of $465.2 million and $468 million. The company also projects a loss per share between 9 cents and 8 cents for the full year.

CrowdStrike’s CFO Burt Podbere cited the company’s “strong performance and growing momentum in the market” as catalysts for the outlook.

Co-founder and CEO George Kurtz said on the earnings call, “We delivered an exceptional third quarter with record results well exceeding our expectations. Year-over-year, we increased the number of net new subscription customers by 112% and achieved 97% ARR growth, 98% subscription revenue growth and 88% total revenue growth, which was above the high end of our guidance. I would also like to highlight two significant milestones we achieved in the quarter.”

Disclaimer: We have no position in Crowdstrike Holdings Inc. (NASDAQ: CRWD) and have not been compensated for this article.