Earnings Results: CrowdStrike stock drops nearly 20% as new subscriptions slow

by | Nov 29, 2022 | Stock Market

CrowdStrike Holdings Inc. shares dropped in the extended session Tuesday after the cybersecurity company said new subscriptions came in below expectations amid macro headwinds. CrowdStrike 
shares plummeted more than 17% after hours, following a 1% decline in the regular session to close at $138.

The company reported a fiscal third-quarter loss of $55 million, or 24 cents a share, compared with a loss of $50.5 million, or 22 cents a share, in the year-ago period. Adjusted net income, which excludes stock-based compensation and other items, was 40 cents a share, compared with 17 cents a share in the year-ago period. Revenue rose to $580.9 million from $380.1 million in the year-ago quarter. Annual recurring revenue, or ARR, a software-as-a-service metric that shows how much revenue the company can expect based on subscriptions, grew 54% to $2.34 billion from the year-ago quarter, while the Street expected $2.35 billion. Analysts expected CrowdStrike to report earnings of 28 cents a share on revenue of $516 million, based on the company’s outlook of 30 cents to 32 cents a share on revenue of $569.1 million to $575.9 million. “ …

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