By Yasin Ebrahim
Investing.com -- Cybersecurity company CrowdStrike reported Tuesday better-than-expected full-year guidance after fourth-quarter results topped Wall Street estimates as ongoing cybersecurity demand spurred new business wins.
Crowdstrike Holdings (NASDAQ:CRWD) was up 7% in after-hours trading following the report.
Crowdstrike reported earnings of $0.47 a share, above estimates of $0.43 a share. Revenue of $637.4 million beat estimates of $624.77M.
The earnings beat was driven by a surge in new customer subscriptions that pushed average recurring revenue, or ARR, to record levels in the quarter.
“Highlights of the quarter included record net new ARR of $222M, record net new subscription customers of 1,873, record operating and free cash flow and a rule of 81 on a free cash flow basis,” the company said.
Annual recurring revenue – a gauge of the performance of its subscription businesses – rose 48% year over year in 2023, with net new subscription customers in the quarter of 1,873, taking the total to 23,019 subscription customers for the year, representing 41% growth year-over-year.
For the first quarter, the company expects an EPS of $0.50 to $0.51 on revenue in a range of $674.9M to $678.2M.
For fiscal 2024, CrowdStrike forecasts EPS of $2.21 to $2.39 and revenue of $2.95B to $3.01B. That was above Wall Street forecasts for EPS of $2.02 and revenue of $2.97B.