The stock of CrowdStrike Holdings (CRWD) is down 7% after the cybersecurity firm reported mixed quarterly financial results and issued disappointing forward guidance.
The Austin, Texas-based company announced earnings per share (EPS) of $0.73 U.S., which was ahead of Wall Street’s consensus forecast of $0.66 U.S.
Revenue for the quarter totaled $1.10 billion U.S., which was below consensus expectations of $1.11 billion U.S. Sales were up 20% from a year earlier.
CrowdStrike’s forward guidance also came up short. The company guided for revenue in the current second quarter of $1.15 billion U.S. at the midpoint of its range.
That was below analyst expectations that called for $1.16 billion U.S. in sales. The company maintained its full-year revenue outlook, but Wall Street expected the company to raise it.
In its earnings release, CrowdStrike said higher interest rates and stubborn inflation have led its clients to cut their technology spending, weighing on demand for its cybersecurity products.
Still, CrowdStrike’s management team said there has never been a greater need for cybersecurity given rising threats and ransomware attacks.
CrowdStrike also faces growing competition from other cybersecurity firms such as Palo Alto Networks (PANW) and Fortinet (FTNT), among others.
In May of this year, CrowdStrike cut 5% of its global workforce, saying it needed to adjust to slowing growth.
Despite the slowdown in its business, the stock of CrowdStrike has risen 41% this year, and, prior to today, was trading at $488.76 U.S. per share.
Tech Insider
