Cybersecurity platform provider CrowdStrike (NASDAQ: CRWD) will be announcing earnings results this Wednesday after market close. Here’s what you need to know.
CrowdStrike beat analysts’ revenue expectations last quarter, reporting revenues of $1.39 billion, up 25.6% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ adjusted operating income estimates.
Is CrowdStrike a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting CrowdStrike’s revenue to grow 23.2% year on year, improving from the 21.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. CrowdStrike rarely misses Wall Street’s revenue estimates.
Looking at CrowdStrike’s peers in the cybersecurity segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Varonis Systems delivered year-on-year revenue growth of 18.3%, beating analysts’ expectations by 1.8%, and Qualys reported revenues up 11%, topping estimates by 2%. Varonis Systems traded down 9% following the results while Qualys was up 13.8%.
Read our full analysis of Varonis Systems’s results here and Qualys’s results here.
There has been positive sentiment among investors in the cybersecurity segment, with share prices up 15.7% on average over the last month. CrowdStrike is up 5.7% during the same time and is heading into earnings with an average analyst price target of $210.54 (compared to the current share price of $190.30).
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