What To Expect From CrowdStrike’s (CRWD) Q4 Earnings

Radek Strnad /
2022/03/08 6:09 am EST
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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 $380 million, up 63.4% year on year, beating analyst revenue expectations by 4.35%. It was a strong quarter for the company, with an exceptional revenue growth and a decent beat of analyst estimates. The company added 1,607 customers to a total of 14,687.

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 55.6% year on year to $412.3 million, slowing down from the 74.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 per share.

CrowdStrike Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing 4 upwards revisions over the last thirty days. 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 6.28%.

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. Zscaler delivered top-line growth of 62.7% year on year, beating analyst estimates by 5.66% and Okta reported revenues up 63.1% year on year, exceeding estimates by 6.45%. Zscaler traded down 16.6% on the results, Okta was down 3.63%. Read our full analysis of Zscaler's results here and Okta's results here.

Tech stocks have been facing declining investor sentiment in 2022 and software stocks have not been spared, with share price down on average 16.1% over the last month. CrowdStrike is down 6.84% during the same time, and is heading into the earnings with analyst price target of $268.3, compared to share price of $166.6.

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.