CrowdStrike revenue climbs 86% in strong Q3 results
CrowdStrike published third quarter financial results on Wednesday, handily beating market expectations. The company's non-GAAP net income per share was 8 cents on revenue of $232.5 million, an 86% increase year-over-year.
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Analysts were expecting EPS of zero cents per share on revenue of $212.6 million. Shares of CrowdStrike were up more than 12% in after hours trading.
Subscription revenue was $213.5 million, an 87% increase. Annual Recurring Revenue (ARR) increased 81% year-over-year and grew to $907.4 million as of October 31. Of that, $116.8 million was net new ARR added in the quarter.
Meanwhile, the company said it added 1,186 net new subscription customers in the quarter for a total of 8,416 subscription customers at the end of Q3, representing 85% growth year-over-year. CrowdStrike's subscription customers that have adopted four or more cloud modules increased to 61%, and those with five or more cloud modules increased 44%.
"Broad-based demand and strength in multiple areas of the business fueled our rapid 87% year-over-year subscription revenue growth, record net new ARR and record net new subscription customers," said CrowdStrike CEO George Kurtz. "CrowdStrike's robust growth at scale underscores our growing leadership in the Security Cloud category and the immense value we deliver to customers seeking to transform, consolidate and fortify their security posture."
For the fourth quarter, CrowdStrike expects revenue in the range of $245.5 million to $250.5 million, with earnings between 8 cents and 9 cents per share. Wall Street expects the company to report Q4 earnings of a penny per share on revenue of $230.3 million.