CrowdStrike (CRWD) To Report Earnings Tomorrow: Here Is What To Expect

Jabin Bastian /
2022/06/01 8:50 am EDT
Add to Watchlist

Cybersecurity company CrowdStrike (NASDAQ:CRWD) will be reporting results tomorrow afternoon. Here's what you need to know.

Last quarter CrowdStrike reported revenues of $431 million, up 62.6% year on year, beating analyst revenue expectations by 4.51%. It was a strong quarter for the company, with an exceptional revenue growth and a full year guidance beating analysts' expectations. The company added 1,638 customers to a total of 16,325.

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 53.3% year on year to $464.3 million, slowing down from the 70% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 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 5.55%.

Looking at CrowdStrike's peers in the cybersecurity segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Tenable delivered top-line growth of 29.3% year on year, beating analyst estimates by 3.82% and Palo Alto Networks reported revenues up 29.1% year on year, exceeding estimates by 2.03%. Tenable traded down 0.9% on the results, and Palo Alto Networks was up 11.7%. Read our full analysis of Tenable's results here and Palo Alto Networks's results here.

There has been a stampede out of high valuation technology stocks and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 10.3% over the last month. CrowdStrike is down 18.7% during the same time, and is heading into the earnings with analyst price target of $241.2, compared to share price of $161.62.

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.