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CrowdStrike Earnings: What To Look For From CRWD


Petr Huřťák /
2022/08/29 7:13 am EDT
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Cybersecurity company CrowdStrike (NASDAQ:CRWD) will be reporting results tomorrow after market hours. Here's what investors should know.

Last quarter CrowdStrike reported revenues of $487.8 million, up 61% year on year, beating analyst revenue expectations by 5.09%. It was a strong quarter for the company, with an exceptional revenue growth and a solid beat of analyst estimates. The company added 1,620 customers to a total of 17,945.

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 52.9% year on year to $516.4 million, slowing down from the 69.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.27 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 5.23%.

Looking at CrowdStrike's peers in the cybersecurity segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Qualys delivered top-line growth of 20.2% year on year, beating analyst estimates by 2% and Palo Alto Networks reported revenues up 27.1% year on year, exceeding estimates by 0.41%. Qualys traded up 3.14% on the results, and Palo Alto Networks was up 6.15%. Read our full analysis of Qualys's results here and Palo Alto Networks's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks up on average 0.64% over the last month. CrowdStrike is up 4.14% during the same time, and is heading into the earnings with analyst price target of $236.2, compared to share price of $190.95.

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.