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CrowdStrike shares plunged 18% in extended trading on Tuesday after the cybersecurity company reported third-quarter results that top estimates but said new revenue growth was weaker than expected.
Here’s how the company did:
- Earnings: 40 cents per share, adjusted, vs. 31 cents expected by analysts, according to Refinitiv
- Revenue: $581 million vs. $574 million expected by analysts, according to Refinitiv
CrowdStrike reported annual recurring revenue (ARR) of $2.34 billion, up 54% year over year. More than $198 million was net new ARR added in the quarter, which ended Oct. 31. The company also added 1,460 net new subscription customers for the quarter.
CEO George Kurtz said in a release that the company’s total net new ARR was below expectations.
“Increased macroeconomic headwinds elongated sales cycles with smaller customers and caused some larger customers to pursue multi-phase subscription start dates, which delays ARR recognition until future quarters,” Kurtz said.
Last year, CrowdStrike’s ARR increased by more than 67% in the third quarter, and the company added 1,607 net new subscription customers for that same period.
Cybersecurity has remained a concern throughout the war between Russia and Ukraine, with governments warning companies to remain wary of attacks. Russian military hackers tried and failed to attack Ukraine’s energy infrastructure in April.
Prior to the after-hours move, shares of CrowdStrike were down more than 32% so far this year. The Nasdaq has dropped about 30% over that stretch.
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