CrowdStrike Holdings Inc. (CRWD) delivered strong second-quarter financial results, exceeding analyst expectations on both revenue and earnings. The cybersecurity company reported revenue of $963.9 million, surpassing the consensus estimate of $958.582 million. This represents a 32% year-over-year increase in revenue. CrowdStrike also reported adjusted earnings per share of $1.04, beating analyst estimates of 97 cents per share. This marks the company’s continued track record of exceeding expectations since going public in 2019.
The company’s annual recurring revenue (ARR) also saw significant growth, climbing 32% year-over-year to $3.86 billion. This growth was fueled by the addition of $217.6 million in net new ARR during the second quarter. CrowdStrike’s financial strength is further evidenced by its strong cash flow, with $326.6 million generated from operations and $272.2 million in free cash flow. The company ended the quarter with $4.04 billion in cash, equivalents, and short-term investments.
Despite a major IT outage in July, CrowdStrike remains optimistic about its future. CEO George Kurtz emphasized the company’s resilience and customer-centric approach, stating, “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.” He also highlighted the company’s growing focus on consolidating cybersecurity solutions into a single, streamlined platform, with CrowdStrike Falcon serving as the central hub.
While the July outage is expected to have a temporary impact on revenue, CrowdStrike has already taken steps to mitigate the effects. The company has extended commitment packages to affected customers and expects an estimated $30 million subscription revenue impact in each of the remaining fiscal quarters. Despite this, CrowdStrike remains confident in its future growth, forecasting revenue of $3.89 billion to $3.902 billion for fiscal year 2025. The company also anticipates full-year earnings in the range of $3.61 to $3.65 per share.
CrowdStrike’s strong performance and continued focus on innovation position it well in the evolving cybersecurity landscape. The company’s commitment to customer satisfaction and its focus on consolidating security solutions into a unified platform are likely to drive continued growth in the coming quarters.
