Cybersecurity company CrowdStrike (NASDAQ:CRWD) will be reporting earnings tomorrow after market hours. Here's what to look for.
Last quarter CrowdStrike reported revenues of $786 million, up 35.3% year on year, beating analyst revenue expectations by 1.1%. It was a decent quarter for the company, with ARR (annual recurring revenue) and revenue narrowly topping analysts' expectations. CrowdStrike beat on non-GAAP operating income and non-GAAP EPS by a more convincing amount. While the next quarter's revenue guidance was only in line, non-GAAP operating income was head. Full year guidance was also raised.
Is CrowdStrike buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting CrowdStrike's revenue to grow 31.8% year on year to $840 million, slowing down from the 47.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.82 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.6%.
Looking at CrowdStrike's peers in the cybersecurity segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Varonis delivered top-line growth of 8.1% year on year, beating analyst estimates by 1.6% and Tenable reported revenues up 15.5% year on year, exceeding estimates by 3.2%. Varonis traded up 2.7% on the results, and Tenable was up 6%.
Read our full analysis of Varonis's results here and Tenable's results here.
There has been positive sentiment among investors in the cybersecurity segment, with the stocks up on average 3.7% over the last month. CrowdStrike is up 3.8% during the same time, and is heading into the earnings with analyst price target of $322.2, compared to share price of $313.9.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.