Crowdstrike app with logo
Crowdstrike beats third quarter expectations and promises more growth / Image source: Adobe
  • Endpoint security firm beats third quarter expectations
  • Free cash flow and annual recurring revenue stand out
  • Stock doubled in 2023 as investors bet big on AI-powered growth

Cybersecurity company CrowdStrike (CRWD:NASDAQ) has been on a tear this year as investor bet on years of AI-powered growth. They were not left disappointed.

The Austin, Texas-based company announced better-than-expected results in the third quarter to 31 October, producing earnings of $0.82 per share on revenue up 35.3% year-on-year to $786 million. Analysts had been anticipating $0.74 on $777 million ahead of the release.

Crowdstrike’s differentiation is its high-efficacy cloud-based endpoint technology, lightweight single-agent architecture, and massive scale analysing over a trillion events daily.


The stock has already doubled this year and has rallied nearly 22% into Q3 figures, perhaps explaining why the response looks relatively muted. Pre-market data shows the shares moving about 2% higher when trading resumes on Wall Street to $215.94.

There’s more growth to come. The company expects Q4 (to 31 Jan 2024) revenue to be around $838.3 million, nudging guidance mostly beyond the $836.8 million consensus.

Crowdstrike appProvides customers with high-efficacy cloud-based endpoint technology

Stifel reckons Crowdstrike will be able to sustain revenue growth of somewhere in the low-to-mid-20% range, at a minimum, while improving its operating margin and free cash flow generation.


Free cash flow, alongside ARR (annual recurring revenue), are what really stand out. CrowdStrike’s free cash flow came in at $239 million in Q3, up 37.3% year-on-year. This means it has generated $864.6 million in free cash flow over the last 12 months, an eye-popping 30.5% of revenue.

Q3 ARR came in at $3.15 billion, a slight beat versus expectations of $3.14 billion, giving the company incredible visibility to future sales. It means Crowdstrike is already ahead of this year’s 12-month revenue estimate of $3.05 billion and well on track to hit January 2025’s rough $3.9 billion estimate.

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Issue Date: 29 Nov 2023