CrowdStrike rallies 17% after beating estimates for 3rd quarter earnings and future growth

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  • CrowdStrike rallied as much as 16.9% on Thursday after beating earnings expectations across the board.
  • The cybersecurity company’s fiscal third-quarter profit and revenue landed well above estimates.
  • CrowdStrike also lifted its forward guidance above Wall Street’s forecasts.
  • The leap placed shares at record highs.
  • Watch CrowdStrike trade live here.

CrowdStrike leaped as much as 16.9% on Thursday after the cybersecurity company’s quarterly report broadly exceeded expectations.

The firm beat estimates for fiscal third-quarter earnings and revenue when it reported figures Wednesday afternoon. CrowdStrike also lifted its current-quarter guidance above Wall Street’s forecasts, further boosting bullishness for its shares.

Here are the key numbers: 

Revenue: $232.5 million, versus the $213.8 million estimate from analysts surveyed by Bloomberg

Adjusted earnings per share: 8 cents, versus the 0.5 cent estimate

Q4 revenue: $245.5 million to $250.5 million, versus the $232.1 million estimate

Q4 adjusted EPS: 8 cents to 9 cents, versus the 1.5 cent estimate

Read more: Morgan Stanley handpicks 42 stocks to buy as their company-specific strengths help them deliver strong growth for many years to come

“CrowdStrike delivered a record third quarter with results exceeding our expectations across the board,” CEO George Kurtz said in a statement.

The stock’s jump placed prices at record highs. Shares are up roughly 227% year-to-date.

Subscription revenue grew 87% from the year-ago period. The company also added a record 1,186 net new subscription customers in the quarter ended October 31.

The quarterly performance notched CrowdStrike’s third straight quarter of non-GAAP operating profitability. Operating and free cash flow was positive for the fifth consecutive quarter. Still, unadjusted earnings showed a loss of 11 cents per share.

CrowdStrike traded at $163.62 per share as of 10:15 a.m. ET Thursday. The company has 25 “buy” ratings and six “hold” ratings from analysts.

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