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Crowdstrike stock rises after beating earnings expectations

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Crowdstrike shares pop after the company beat Q4 earnings expectations.

Video Transcript

EMILY MCCORMICK: Well, some breaking news on the earnings front. The major cyber security player Crowdstrike is out with fourth quarter results and guidance that each topped expectations. And as we can see, those shares are moving higher by more than 10% in late trading. Now diving right into these fourth quarter results, revenue coming in at $431 million, well above expectations for about $411 million. We also had annual recurring revenue, which is a closely watched metric for many of these software players, coming in at $1.73 billion. The expectation was for $1.68 billion.

Now taking a look here at total subscription customers at more than 16,325, that actually was the number. The estimate was for about 16,134. Now taking a look here also at the company's first quarter, the current quarter guidance, that was also ahead of expectations, really building on the positive sentiment around this report. Adjusted earnings per share, Crowdstrike says will likely come in between $0.22 and $0.24. Even on the low end, that was ahead of expectations for $0.17 a share. And first quarter revenue guidance of between $458.9 million to $465.4 million, again, well above consensus expectations.

And just taking a look quickly at how the stock has been trading recently, shares of CrowdStrike had fallen by about 16.8% for the year-to-date through today's close. But as we can see, still paring some of those declines in late trading now. Guys.

BRAD SMITH: And it really comes back down to the customers that they're seeing uptick, the net new that they're seeing, 1,638 new customers there. The estimate was for 1,496. And then on that number as well of the total subscription customer, 16,325, above estimates as well.

I imagine some of the investors are going to be asking questions around how much many of those customers are paying and the average kind of account size that we're looking at here for Crowdstrike in an environment where there's so much more focus on exactly how some of the businesses are able to safeguard against cyber threats that are also building out even more prominence in the data center. Crowdstrike plays a key role in some of that broader infrastructure spending that is being done on a company by company basis. And I imagine analysts are going to have a lot more questions on that.

Speaking of the analysts you actually had coming into this, 27 buys, two holds, and one sell, according to some of the data that our own Jared Blikre was able to pass through to us. And so we'll continue to see exactly where shares moving in afterhours trading, but right now, jumping, jumping, as Destiny's Child would say. You guys know I'm a big Destiny's Child fan, so I probably overused that one just a little bit. I'll probably alternate to Bills, Bills, Bills at some point, but I'll have to find an applicable scenario there.

EMILY MCCORMICK: And of course, for Crowdstrike, we will be listening into that earnings call kicking off later this hour to see whether they mention anything about Russia-Ukraine and some of the cybersecurity threats there. But certainly something to keep an eye on.