Why CrowdStrike Stock Tumbled Nearly 27% in November
Shares of CrowdStrike Holdings (NASDAQ: CRWD) plunged 26.7% in November, according to data provided by S&P Global Market Intelligence. Weighing on the cybersecurity company's stock price was its fiscal third-quarter results. While it posted strong numbers overall, slowing growth spooked investors.
CrowdStrike reported its fiscal third-quarter results right at the end of November. At first look, they seemed outstanding. Revenue soared 53% to $580.9 million, while its annual recurring revenue (AAR) leaped 54% to $2.34 billion. Meanwhile, the company's non-GAAP (adjusted) income from operations jumped from $50.7 million to $89.7 million. The company also grew its free cash flow from $123.5 million to $174.1 million.
However, while the cybersecurity company added $198.1 million of net new ARR in the period, that was below expectations due to increasing macroeconomic uncertainty. Companies delayed purchasing decisions or signed contracts with multiphase start dates. CrowdStrike CEO George Kurtz warned during the conference call, "We expect these macro headwinds to persist through Q4." As a result, management sees its net new ARR at least 10% below the third-quarter number.
Source Fool.com
