CrowdStrike reported a better-than-expected third quarter results and said it retained 97% of customers as it moved past its July outage.
The company reported a third quarter net loss of $16.8 million, or 7 cents a share, on revenue of $1.01 billion, up 29% from a year ago. Non-GAAP earnings were 93 cents a share. The company delivered annual recurring revenue of $4.02 billion, up 27% from a year ago.
Wall Street was expecting CrowdStrike to report third quarter earnings of 81 cents a share on revenue of $983.03 million. Analysts leading up to the earnings were confident that the company has put its July outage behind it without a hit to customer retention. CrowdStrike recently said it would acquire Adaptive Security.
CrowdStrike’s report comes a week after Palo Alto Networks report, which was better than expected as the company indicated its ongoing platformization strategy was winning share. CrowdStrike has also been seen as a company that can benefit as enterprises consolidate vendors and platforms.
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Module adoption rates for five or more modules was 66% in the third quarter.
As for the outlook, CrowdStrike projected fourth quarter revenue of $1.0287 billion to $1.035.4 billion with non-GAAP earnings of 84 cents a share to 86 cents a share. For fiscal 2025, CrowdStrike projected revenue of $3.923.8 billion to $3.930.5 billion. Non-GAAP earnings for the year will be $3.74 a share to $3.76 a share.
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