George Kurtz, co-founder and CEO of CrowdStrike, speaks on the Wall Street Journal D.Live global technology conference in Laguna Beach, California, on Oct. 17, 2017.
Patrick T. Fallon | Bloomberg | Getty Images
CrowdStrike shares plunged 18% in prolonged trading on Tuesday after the cybersecurity company reported third-quarter results that top estimates but said recent revenue growth was weaker than expected.
Here’s how the corporate did:
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- Earnings: 40 cents per share, adjusted, vs. 31 cents expected by analysts, in response to Refinitiv
- Revenue: $581 million vs. $574 million expected by analysts, in response to Refinitiv
CrowdStrike reported annual recurring revenue (ARR) of $2.34 billion, up 54% 12 months over 12 months. Greater than $198 million was net recent ARR added within the quarter, which ended Oct. 31. The corporate also added 1,460 net recent subscription customers for the quarter.
CEO George Kurtz said in a release that the corporate’s total net recent 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 12 months, CrowdStrike’s ARR increased by greater than 67% within the third quarter, and the corporate added 1,607 net recent subscription customers for that very same period.
Cybersecurity has remained a priority throughout the war between Russia and Ukraine, with governments warning corporations to stay wary of attacks. Russian military hackers tried and didn’t attack Ukraine’s energy infrastructure in April.
Prior to the after-hours move, shares of CrowdStrike were down greater than 32% to date this 12 months. The Nasdaq has dropped about 30% over that stretch.
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