CrowdStrike Set to Unveil Q3 Fiscal 2024 Results

Crowdstrike Stock

CrowdStrike Holdings (NASDAQ:CRWD) is poised to reveal its third-quarter fiscal 2024 results after the market closes on November 28. With the company projecting third-quarter revenues between $775.4 million and $778 million, analysts are eyeing a Zacks Consensus Estimate of $777.2 million, signifying a notable 33.8% improvement from the corresponding figure in the previous year.

Anticipating non-GAAP earnings of around 74 cents per share, in line with the Zacks Consensus Estimate, CrowdStrike foresees an 85% enhancement in the bottom line compared to the year-ago quarter’s non-GAAP earnings of 40 cents per share. The company has consistently outperformed the Zacks Consensus Estimate over the last four quarters, with an average surprise of 20.1%.

Factors to Watch

CrowdStrike’s third-quarter fiscal 2024 performance is expected to mirror the positive impact of sustained robust demand for its products in the thriving global security market. The surge in individuals accessing corporate networks has heightened the necessity for security measures, potentially driving the demand for CRWD’s products in the fiscal third quarter. A robust pipeline of deals further supports this trend.

The impressive growth in subscription revenues is likely to be a significant contributor to the third-quarter top line. Additionally, the growth in net new subscription customers may serve as a favorable factor. The estimate for Subscription revenues in the third quarter is $733.2 million, indicating a YoY improvement of 34%. Revenues from the Professional Services segment are also anticipated to rise by 27.5% YoY to $42.7 million.

The collaboration between CrowdStrike and Amazon Web Services (“AWS”) is anticipated to have a positive impact, with CRWD benefiting from the availability of its products on the AWS platform. The increase in transaction volume through Amazon’s AWS Marketplace, coupled with the growth in co-selling opportunities with AWS salesforce and the adoption of AWS service integrations, is expected to contribute to CRWD’s earnings in the upcoming quarter.

However, the fiscal third-quarter bottom line may face pressure due to elevated expenses incurred in enhancing sales and marketing capabilities, as well as increased investments in research and development. Despite these challenges, the market eagerly awaits CrowdStrike’s fiscal performance for a comprehensive understanding of its standing in the cybersecurity landscape.

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