CrowdStrike Q4 Earnings: Revenue Beat, EPS Beat, Strong Guidance, Flow Security Acquisition And More

CrowdStrike Holdings Inc CRWD reported fourth-quarter financial results after the market close on Tuesday. Here’s a look at the key metrics from the quarter.

Q4 Earnings: CrowdStrike’s fourth-quarter revenue increased 33% year-over-year to $845.34 million, which beat the consensus estimate of $839.04 million, according to Benzinga Pro. The cybersecurity company reported quarterly earnings of 95 cents per share, which beat analyst estimates of 82 cents per share.

CrowdStrike has exceeded analyst estimates on both the top and bottom line in every quarter since the company went public in 2019, per Benzinga Pro.

Annual recurring revenue increased 34% year-over-year to $3.44 billion after the company added $281.9 million of net new ARR in the fourth quarter.

Net cash generated from operations was $347 million. CrowdStrike also generated $283 million in free cash flow during the quarter. The company ended the quarter with $3.47 billion in cash, equivalents and short-term investments.

“Customers favor our single platform approach, standardizing on CrowdStrike for cloud security, identity protection, and LogScale next-gen SIEM solutions, together representing more than $850 million of ending ARR,” said George Kurtz, co-founder, president and CEO of CrowdStrike.

“CrowdStrike is cybersecurity’s consolidator of choice, innovator of choice, and platform of choice to stop breaches.”

Outlook: CrowdStrike sees first-quarter revenue in the range of $902.2 million to $905.8 million versus estimates of $899.29 million. The company expects fiscal year 2025 revenues to be between $3.925 billion and 3.989 billion versus estimates of $3.05 billion.

CrowdStrike anticipates first-quarter adjusted earnings of 89 cents to 90 cents per share versus estimates of 82 cents per share. The company sees fiscal year 2025 earnings in the range of $3.77 to $3.97 per share versus estimates of $3.75 per share.

Management will hold a conference call to discuss these results at 5 p.m. ET.

What Else: CrowdStrike also announced that it has agreed to acquire cloud data runtime security solution company Flow Security. The acquisition is expected to expand CrowdStrike’s cloud security presence with data security posture management.

Financial terms were not disclosed. The company said the purchase price will be paid predominantly in cash, with a portion in equity. The proposed acquisition is expected to close during CrowdStrike’s fiscal first quarter.

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CRWD Price Action: CrowdStrike shares were up 18.50% after hours at $352.60 at the time of publication, according to Benzinga Pro.

Photo: Shutterstock.