CrowdStrike (CRWD) Reports Q4: Everything You Need To Know Ahead Of Earnings

Kayode Omotosho /
2023/03/06 5:46 am EST
Add to Watchlist

Cybersecurity company CrowdStrike (NASDAQ:CRWD) will be reporting earnings tomorrow after market hours. Here's what you need to know.

Last quarter CrowdStrike reported revenues of $580.9 million, up 52.8% year on year, beating analyst revenue expectations by 1.01%. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and full year. The company added 1,460 customers to a total of 21,146.

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 45.5% year on year to $626.9 million, slowing down from the 62.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.43 per share.

CrowdStrike Total Revenue

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 4.07%.

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. Palo Alto Networks delivered top-line growth of 25.7% year on year, beating analyst estimates by 0.34% and Qualys reported revenues up 19.2% year on year, exceeding estimates by 0.55%. Palo Alto Networks traded up 5.44% on the results, and Qualys was down 0.63%. Read our full analysis of Palo Alto Networks's results here and Qualys's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks down on average 1.58% over the last month. CrowdStrike is up 16.1% during the same time, and is heading into the earnings with analyst price target of $159.5, compared to share price of $126.88.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.