The Big Problem With CrowdStrike Stock
If you set aside analyst expectations, CrowdStrike (NASDAQ: CRWD) is doing just fine. The cybersecurity company grew revenue by 53% year over year in the third quarter of fiscal 2023, and its annualized recurring revenue reached $2.34 billion. It's downright impressive for a company this size to still be growing so quickly.
CrowdStrike's customer count expanded by 44% year over year, and 60% of customers are now using at least five of the company's modules. Even as economic uncertainty ramps up, CrowdStrike is seeing strong demand for its services.
The company did note that sales cycles are getting longer with smaller customers, and that some larger customers are tweaking subscription start dates in ways that push back revenue recognition. In a tough economy, nearly every business will be taking steps to keep a lid on costs. CrowdStrike guided for fourth-quarter revenue between $619.1 million and $628.2 million, below the average analyst estimate.
Source Fool.com
