Why CrowdStrike Stock Soared Today
Shares of CrowdStrike Holdings (NASDAQ: CRWD) were up 9.8% as of 11:15 a.m. ET Thursday after the cybersecurity specialist announced strong fiscal second-quarter 2024 results (for the period ended July 31, 2023).
Quarterly revenue climbed 37% year over year, to $731.6 million, translating to its second straight quarter of profitability under generally accepted accounting principles (GAAP) with net income of $8.4 million, or $0.03 per share. On a non-GAAP (adjusted) basis -- which excludes items like stock-based compensation -- CrowdStrike's net income was $180 million, or $0.74 per share. Analysts, on average, were expecting adjusted earnings of only $0.56 per share on revenue of $724.4 million.
CrowdStrike saw solid 37% growth in annual recurring revenue (ARR), to $2.93 billion at the end of the quarter, including $196.2 million of net new ARR added in Q2. The company also generated healthy cash flows; net cash from operations was up 16.6% year over year, to $244.8 million, while free cash flow grew 39% to $188.7 million. Customers continued to expand their adoption of usage of multiple CrowdStrike modules, with 63%, 41%, and 24% adopting five or more, six or more, and seven or more modules, respectively, as of the end of July.
Source Fool.com
CrowdStrike Holdings Inc Stock
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