By Yasin Ebrahim
Investing.com -- Cybersecurity company CrowdStrike raised its full-year guidance Thursday following first-quarter results that beat on the top and bottom lines, underpinned by growing cybersecurity demand.
Crowdstrike (NASDAQ:CRWD) was down 3% in afterhours trading.
Crowdstrike reported earnings of $0.31 a share, above estimates of $0.23 a share. Revenue of $487.8 million beat estimates of $463.9 million.
The beat on the top line was a result of investments that helped the company capture market share and better retain customers amid a backdrop of increasing cybersecurity demand.
"Gross retention rates reached an all-time high and the number of customers adopting six or more and seven or more modules both more than doubled year-over-year, underscoring the immense value we deliver to customers seeking to transform, consolidate and fortify their security defense," the company said.
Annual recurring revenue – a measure of performance of its subscription businesses – rose 61% year over year, with net new subscription customers in the quarter increased by 1,620, taking the total to 17,945 subscription customers, representing 57% growth year-over-year.
For the second quarter, the company expects an EPS of 27 to 28 cents on revenue in a range of $512.7 million to $516.8 million.
CrowdStrike lifted its guidance on performance for 2023, forecasting EPS of $1.18 to $1.22 and revenue of $2.19 billion to $2.21 billion. That was above the prior forecast for EPS of $1.03 to $1.13 on revenue of $2.13 billion to $2.16 billion.