CrowdStrike (NASDAQ:CRWD) stock soared about 24% in the after-hours trading session yesterday following the release of an impressive Fiscal fourth-quarter earnings report. Further, CRWD provided a strong outlook for the full Fiscal Year 2025.
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CRWD is a cybersecurity company known for its cloud-native endpoint protection platform that detects and prevents threats in real-time.
Q4 Earnings Snapshot
The company posted adjusted earnings of $0.95 per share, which came above the analysts’ estimates of $0.82 per share. Also, the reported figure climbed 102.1% from the prior-year quarter.
Meanwhile, Q4 revenues of $845.3 million rose 33% year-over-year and surpassed the Street’s estimates of $839 million. The top-line growth was aided by a 33% increase in subscription revenues and a 26.3% rise in income from professional services.
Additionally, annual recurring revenue (ARR) increased 34% year-over-year to $3.44 billion as of January 31, 2024. Moreover, net new ARR growth accelerated to 27%.
Upbeat Q1 and FY25 Outlook
Looking forward, management expects revenue and adjusted earnings per share for the Fiscal first quarter to be in the ranges of $902.2 million to $905.8 million and $0.89 to $0.90, respectively. Analysts expect earnings of $0.82 and revenue of $900 million.
For the Fiscal Year 2025, CRWD anticipates that adjusted earnings will be between $3.77 and $3.97, above the consensus estimate of $3.76. Additionally, the company projects that revenue will come in the range of $3.93 billion to $3.99 billion, compared with the consensus expectations of $3.94 billion.
Strategic Acquisition
During the earnings release, CrowdStrike also announced an all-cash deal to acquire Flow Security, a cloud data security provider. The deal is expected to close in Q1 FY25. The company seeks to enhance its cloud data protection portfolio through this acquisition.
What is the Price Target for CRWD Stock?
It is worth mentioning that following the release of Q4 earnings, two analysts assigned a Buy rating to the stock. Among them, Wedbush analyst Taz Koujalgi raised the price target on CrowdStrike to $350 (17.6% upside) from $278.
Currently, Wall Street is optimistic about CRWD stock. It has a Strong Buy consensus rating based on 34 Buy and two Hold recommendations. After a nearly 79% rally in the past six months, the average CrowdStrike stock price target of $332.74 per share implies another 11.8% upside potential.
