CrowdStrike Earnings: What To Look For From CRWD

Jabin Bastian /
2022/11/28 4:09 am EST

Cybersecurity company CrowdStrike (NASDAQ:CRWD) will be announcing earnings results tomorrow after market hours. Here's what investors should know.

Last quarter CrowdStrike reported revenues of $535.1 million, up 58.4% year on year, beating analyst revenue expectations by 3.62%. It was a solid quarter for the company, with exceptional revenue growth and a decent beat of analyst estimates. The company added 1,741 customers to a total of 19,686.

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 51.3% year on year to $575 million, slowing down from the 63.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.32 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 4.99%.

Looking at CrowdStrike's peers in the cybersecurity segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Palo Alto Networks delivered top-line growth of 25.3% year on year, beating analyst estimates by 0.78% and Qualys reported revenues up 19.6% year on year, exceeding estimates by 0.8%. Palo Alto Networks traded flat on the results, and Qualys was down 6.59%. Read our full analysis of Palo Alto Networks's results here and Qualys's results here.

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 7.03% over the last month. CrowdStrike is down 13.7% during the same time, and is heading into the earnings with analyst price target of $228.40, compared to share price of $139.00.

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.