CrowdStrike Holdings Inc (NASDAQ:CRWD) shares are climbing Wednesday as investors position ahead of the cybersecurity company’s second-quarter results, due after today’s market close.
- CrowdStrike Holdings stock is holding steady today. What should traders watch with CRWD?
CrowdStrike Heads Into Earnings With a Strong Beat Streak
Analysts expect CrowdStrike to report second-quarter revenue of $1.44 billion, up from $1.17 billion a year earlier, and adjusted earnings of 29 cents per share, up from 23 cents in the same quarter last year, according to Benzinga Pro data. The company has a strong history of positive earnings surprises.
If CrowdStrike beats both the revenue and earnings estimates, it would reinforce the idea that demand for its platform is holding up even as competition in cybersecurity intensifies. A beat on revenue in particular would suggest customers are still expanding their spending with CrowdStrike at a healthy pace, while a beat on earnings would point to the company converting that growth into profit more efficiently.
That track record sets up a high bar heading into Wednesday’s print, according to Freedom Capital Markets Chief Market Strategist Jay Woods, who said investors should zero in on two things: how much new annual recurring revenue the company adds and how demand for AI-related security tools is trending.
CrowdStrike Built Momentum Through a Record Q1
CrowdStrike’s first-quarter results set the stage for today’s report. The company posted record net-new ARR of $256 million, up 32% year-over-year, along with record operating cash flow of $591 million and record free cash flow of $468 million.
Total revenue reached $1.39 billion, up 26% from a year earlier, while annual recurring revenue grew 24% to $5.51 billion. The company also reported adjusted net income climbed to $283.4 million, or $1.10 per diluted share, from $184.7 million, or 73 cents per share, in the first quarter last year.
With shares up approximately 60% year-to-date heading into the print, CrowdStrike will need to show continued strong momentum when it reports after the bell.
CRWD Shares Are Rising
CRWD Price Action: CrowdStrike shares were up 1.41% at $188 at the time of publication on Wednesday, according to Benzinga Pro.
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