CrowdStrike Q2 Earnings: Revenue Beat, EPS Beat, ARR Up 32% 'Even More Customer-Obsessed' Company Following IT Outage In July

CrowdStrike Holdings Inc CRWD reported second-quarter financial results Wednesday after the bell. Here’s a look at the key metrics from the quarter.

Q2 Earnings: CrowdStrike reported second-quarter revenue of $963.9, beating the consensus estimate of $958.582 million. The cybersecurity company reported adjusted earnings of $1.04 per share, beating analyst estimates of 97 cents per share.

CrowdStrike has beat analyst estimates on the top and bottom lines in each quarter since it went public in 2019, according to data from Benzinga Pro.

Total revenue was up 32% year-over-year. Annual recurring revenue increased 32% year-over-year to $3.86 billion after the company added $217.6 million of net new ARR in the second quarter. Net cash generated from operations was $326.6 million and free cash flow came in at $272.2 million. The company ended the quarter with $4.04 billion in cash, equivalents and short-term investments.

“Working with customers to recover from the July 19th incident, we emerge as an even more resilient and even more customer-obsessed CrowdStrike, continuing to aggressively invest in innovation. Our second quarter demonstrates the resilience of our business and platform — with LogScale Next-Gen SIEM, Identity Protection and Cloud Security eclipsing $1 billion in combined ending ARR,” said George Kurtz, co-founder, president and CEO of CrowdStrike.

“In response to rising point product complexity and an elevated threat environment, organizations are increasingly focused on consolidating their cybersecurity vendors into a streamlined platform that delivers better security outcomes, which is CrowdStrike Falcon. Our vision and mission of stopping breaches remains unchanged.”

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What’s Next: CrowdStrike expects third-quarter revenue to be in the range of $979.2 million to $984.7 million versus estimates of $1.01 billion. The company anticipates third-quarter adjusted earnings of 80 cents to 81 cents per share versus estimates of 96 cents per share.

CrowdStrike sees fiscal year 2025 revenue of $3.89 billion to $3.902 billion versus estimates of $3.953 billion. The company expects full-year earnings to be in the range of $3.61 to $3.65 per share versus estimates of $3.88 per share.

CrowdStrike noted it extended commitment packages to customers impacted by the major IT outage in July. The company expects an estimated $30 million subscription revenue impact in each of the remaining fiscal quarters as a result of incentives related to its customer commitment package. 

CrowdStrike also said its 2025 guidance includes an estimated impact in the high-single digit millions to professional services revenue related to customer commitments.

CrowdStrike executives will hold a conference call to discuss the company’s quarterly results at 5 p.m. E.T.

CRWD Price Action: CrowdStrike shares were up 3.33% after hours, trading at $273 at the time of publication Wednesday, according to Benzinga Pro.

Read Next:

• SentinelOne Posts Q2 Beat, 6 Analysts Cite Benefits Of CrowdStrike Customer Churn: ‘Outage Was A Net Positive’

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