Investing.com – Crowdstrike stock (NASDAQ:CRWD) fell 3.3% in Wednesday’s premarket as the cybersecurity firm's higher guidance failed to live up to one of the highest valuations of any widely-recognized company..
The company lifted its revenue guidance for the year to $1.39 billion-$1.40 billion, having raised it to $1.34 billion-$1.36 billion in June. At the top end, it’s a 3% rise from the previous guidance and a 61% jump from last year.
Crowdstrike is the second Cloud-based company this week (after Zoom Video) to have fallen despite beating forecasts, amid signs of recognition of how the 18-month rally in pandemic winners has stretched valuations. Tuesday's closing market value of $64 billion still priced the company at over 40 times expected sales.
Coming at a time when demand for cybersecurity solutions is booming as the world adjusts to a new normal of home-office life, the stock reacted to the modest revision. Crowdstrike’s 2021 revenue grew 74% last year and its latest July-quarter revenue by 70% to $337.7 million, beating estimates.
Annual recurring revenue rose 70% year-over-year to $1.34 billion as the company catered to a variety of demands from users of laptops, desktops, servers, virtual machines and IoT devices.
Net income more than tripled to $25.9 million, and beat estimates on a per share basis.