CRWD Stock: CrowdStrike Earnings Top Views; Okta stock is jumping at a strong pace

Crowd Strike Holdings (CRWD) on Wednesday reported July quarter earnings and revenue that beat Wall Street estimates. Meanwhile, peer cyber security Okta (Octa) gave a bigger win. CRWD stock fell while OKTA stock rose.

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CrowdStrike’s fiscal second-quarter earnings jumped 105% to 74 cents per share on an adjusted basis. Revenue, including acquisitions, rose 37% to $731.6 million.

Analysts polled by FactSet had expected earnings of 56 cents per share on revenue of $724 million for the period ending July 31.

A year earlier, the Sunnyvale, Calif.-based company earned 36 cents a share on revenue of $535 million.

CRWD stock reverses after hours

CrowdStrike stock initially rose after the earnings report, then reversed lower in extended trading. CRWD stock fell 1.5% to 147 in the latest move in the stock market today.

With CrowdStrike, Wall Street is focusing on annual recurring revenue, or ARR. It’s a key financial metric tied to the growth of subscription services. During the July quarter, ARR rose 37% to $2.93 billion. Analysts had expected ARR to reach $2.92 billion.

“Outside of key metrics, the native capabilities of Falcon’s cloud AI-powered platform, identity, and next-generation security monitoring companies collectively contribute more than half a billion dollars to ending ARR,” Matthew Hedberg, analyst at RBC Capital, said in a note to Reuters. Client.

For the current quarter ending in October, CrowdStrike expected revenue of just under $777 million in the middle of its forecast. That exceeded estimates of $774 million.

OKTA stock: raising expectations

Meanwhile, Okta reported earnings of 34 cents, up from a loss of 10 cents in the same period a year earlier. Revenue rose 23% to $556 million. Analysts who track OKTA stock expected earnings of 22 cents on revenue of $535 million.

RBC Capital analyst Matthew Hedberg said in a note to clients that Okta raised its full-year revenue forecast.

“Fiscal guidance for 2024 is up for all metrics with midpoint revenue guidance at $2.21 billion versus prior guidance of $2.18 billion, indicating growth of 19%,” he said.

OKTA shares rose 11.6% to 82.13.

CrowdStrike specialized database

CrowdStrike uses machine learning, a form of artificial intelligence, in its products. Furthermore, it uses a specialized database to detect malware on laptops, mobile phones, and other devices that access corporate networks.

As CrowdStrike’s earnings report approaches, CRWD stock is up 40% so far in 2023. But the stock has an IBD relative strength rating of only 38 out of the top 99, according to IBD stock check.

Follow Reinhart Krause on Twitter @reinhardtk_tech For updates on 5G wireless networks, artificial intelligence, cybersecurity, and cloud computing.

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