CrowdStrike improves earnings outlook, but stock falls as guidance gets less aggressive

CrowdStrike Holdings Inc. shares fell in the extended session Thursday after the cybersecurity company posted quarterly results that topped Wall Street results but didn’t provide as aggressive an outlook as it had in the previous quarter.

CrowdStrike CRWD, +1.81% shares dropped 10% after hours, following a 1.8% rise in the regular session to close at $86.85. As of the close, shares were 155% above their IPO pricing.

The company reported a fiscal second-quarter loss of $51.9 million, or 40 cents a share, compared with a loss of $32.9 million, or 75 cents a share, in the year-ago period. The adjusted loss was 18 cents a share. Revenue nearly doubled from a year ago, surging to $108.1 million from $55.7 million in the year-ago quarter.

Analysts surveyed by FactSet had estimated a loss of 23 cents a share on revenue of $103.8 million.

Looking ahead, CrowdStrike forecast results better than the Street estimated, but not as aggressive a beat as the company estimated in its first earnings report as a public company, when CrowdStrike saw its shares surge nearly 15% the next day.

CrowdStrike expects an adjusted loss of 12 cents to 11 cents a share on revenue of $117.1 million to $119.5 million for the third quarter, and 65 cents to 62 cents a share on revenue of $445.4 million to $451.8 million for the year. Analysts estimated a loss of 13 cents a share on revenue of $111.1 million for the third quarter, and 71 cents a share on revenue of $435 million for the year.

Back in July, CrowdStrike had forecast an adjusted loss of 24 cents to 23 cents a share on revenue of $103 million to $104 million in the fiscal second quarter, when analysts had been looking for a loss of 31 cents a share on revenue of $96.7 million.

For the year, CrowdStrike had also forecast in July an adjusted loss of 72 cents to 70 cents on revenue of $430.2 million to $436.4 million for the year.

In comparison, analysts had been looking for a loss of $1.02 a share on revenue of $412.3 million for the year before the company gave that outlook.

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