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Crowdstrike crushes earnings despite tech stock downturn

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Yahoo Finance Live anchors discuss first-quarter earnings for Crowdstrike.

Video Transcript

- We got about four minutes until the bell also want to touch on the shares of cybersecurity firm Crowdstrike. They're actually down here premarket despite posting stellar quarterly results on Thursday, the shares are moving lower premarket by about 5%. We'll round that off too.

And here's a look at the actuals versus the estimates revenue, that came in at $487.8 million versus that 464.8 million. And then EPS, that was above expectations as well. They also saw growth in their average revenue run rate basically, their ending revenue run rate that grew 61% year over year to $1.9 billion.

And then additionally, the cash flow from operations, that grew 46% and so really going to be a question of where they continue to see more of those added customers. And the retention is one thing, but then, the net new additions, a totally-- another behemoth and for them and all of these companies that, quite frankly, are looking for these business to business long standing contracts. Crowdstrike you would think within this broader cybersecurity landscape, this would be the time for any cloud cybersecurity company to be able to kind of strike on the opportunity here.


- Sorry, I'm sorry.

- That's OK, it's Friday, you just have to do it. I would say this could be another misread by the market here because by and large, this is a very good quarter. George Kurtz, friend of our programming, he came on about a month and a half ago saying business was strong.

He reiterated that commentary on the earnings call, last night. I believe his precise words were, conditions were fantastic. And investors seem to be discontent that they only beat on average recurring revenue by 1%. Still the company came on here, struck a more upbeat tone with their outlook, business looks strong, conference call went well, wouldn't be surprised if that reverses at some point today.

- You're asking shareholders, what more do you want?

- What more do you want? This was a good quarter with Citigroup out here this morning giving a good positive review of the quarter. And it comes at a time where a lot of Crowdstrike competitors are losing business as offices, corporate clients, consolidate their vendors. Crowdstrike still seems to be the winner in this space.

- They're gaining business. They had 57% growth year over year. They added 1,620 net new subscription customers during the quarter. And so they've got that nearly hitting 18-- 18,000 subscription customers as of the end of this most recent quarter. And so, I mean, it's a company like this where you want to see exactly where they would be able to continue adding on to that net customer base and exactly where that total or that trailing 12 month revenue continues to tick higher as well.