CrowdStrike Holdings Inc (NASDAQ:CRWD) shares are trading lower Thursday after the company reported second-quarter results and issued soft revenue guidance for the third quarter. Multiple analysts lowered price targets following the print.
What Happened: Cybersecurity company CrowdStrike beat analyst estimates on the top and bottom lines in the second quarter, reporting revenue of $1.17 billion versus estimates of $1.15 billion, and adjusted earnings per share of 93 cents versus estimates of 83 cents.
Subscription revenue grew 21% year-over-year and annual recurring revenue increased 20% year-over-year after the company added $221.1 million of net new ARR in the quarter. CrowdStrike generated $283.6 million of free cash flow and ended the period with $4.97 billion in cash and cash equivalents.
CrowdStrike guided for third- quarter revenue of $1.208 billion to $1.218 billion versus estimates of $1.228 billion, and adjusted earnings per share of 93 cents to 95 cents versus estimates of 91 cents. The company also raised its full-year earnings guidance and narrowed its full-year revenue outlook.
"As AI transforms the enterprise, CrowdStrike enables organizations to confidently embrace their AI future from development to deployment, from cloud to endpoint, and from human to agent,” said George Kurtz, founder and CEO of CrowdStrike.
CrowdStrike announced plans to acquire real-time telemetry pipeline management company Onum. Terms of the deal were not disclosed, but the company said the deal is expected to evolve Falcon Next-Gen SIEM into the definitive data foundation for agentic security and IT operations.
Analyst Changes: Several analyst firms lowered price targets on CrowdStrike following the company’s quarterly results.
- Needham analyst Mike Cikos maintained a Buy and lowered the price target from $530 to $475.
- Rosenblatt analyst Catharine Trebnick maintained a Buy and lowered the price target from $515 to $490.
- Evercore ISI Group analyst Peter Levine maintained an In-Line rating and lowered the price target from $425 to $405.
- WestPark Capital analyst Casey Ryan reiterated CrowdStrike with a Hold rating.
- Cantor Fitzgerald analyst Jonathan Ruykhaver reiterated an Overweight and maintained a price target of $475.
CRWD Price Action: CrowdStrike shares initially fell to around $390 in Wednesday’s after-hours session before bouncing back. The stock was down 2.74% at $411.01 at the time of publication Thursday, according to Benzinga Pro.
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