What to Expect from CrowdStrike’s Yuge Q3 Beat

“Broad-based demand and strength in multiple areas of the business fueled our rapid 87% YOY subscription revenue growth, record net ARR of $117 million and record 1,186 net new subscription customers.” — CEO George Kurtz

CrowdStrike stock [$CRWD] was trading a wee bit higher on Wednesday after the cloud-based security software shop posted stronger than expected Q3 results. They announced a revenue of $232.5 million, up 86% from a year ago, and well ahead of their guidance range of $210.6 million to $215 million. Annual recurring revenue was $907.4 million, up 81% from the same point a year earlier.

In January Q1, CrowdStrike saw revenue of $245.5 million to $250.5 million, with a non-GAAP profit of 8 to 9 cents per share, ahead of the previous Street consensus at $230.3 million and a penny a share. Furthermore, they ballooned the full-year revenue forecast between $855 million and $860 million and non-GAAP profits of 21 to 22 cents per share, from a previous forecast of $809.1 million to $826.7 million and non-GAAP profits of 2 to 8 cents per share.

$NDAQ v.s. $CRWD

CrowdStrike’s quarterly results are likely to reflect bigly growth in subscription revenues. Increasing subscription customers might’ve been a key headwind as well. The company is said to have gained from the growing strength in subscription customers, who are incessantly adopting four or more cloud modules.

CrowdStrike’s Falcon platform is becoming a principle factor; a program that halts breaches by sniffing out a wide spectrum of threats, even malware-free intrusions, providing five-second visibility across all current and past endpoint activity while reducing cost for customers. Also, their Threat Graph tackles the cloud to instantly decipher data from billions of endpoint events across a global crowdsource community.

CFO Burt Podbere said that CrowdStrike posted non-GAAP operating profitability for the third consecutive quarter and generated positive free cash flow for the fifth consecutive quarter. Is that good?

The simplicity of CrowdStrike’s architecture finally gives you the freedom to replace and retire the complicated, performance-robbing security layers that clutter your environment.

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