Investing.com -- CrowdStrike raised its annual guidance after the cybersecurity company delivered better-than-expected second-quarter results as its AI-powered cybersecurity platform boosted new business wins.
Crowdstrike Holdings Inc (NASDAQ:CRWD) rose over 1% in pre-open Thursday trading following the report.
The company reported adjusted EPS of $0.74 on revenue of $731.6 million, above estimates of $0.56 and $724.1M, respectively.
The earnings beat was driven by a surge in new customer subscriptions as demand for the company's AI-powered Falcon platform led to "high win rates," and boosted average recurring revenue, or ARR, in the quarter, Crowdstrike said.
Annual recurring revenue – a gauge of the performance of its subscription businesses – rose 37% in Q2 year over year.
For the third quarter, the company expects an EPS of $0.74 on revenue in a range of $775.4M to $778M.
For fiscal 2024, CrowdStrike forecasts adjusted EPS of $2.80 to $2.84 and revenue of $3.03B to $3.04B, up from prior estimates for adjusted EPS of $2.32 to $2.43 and revenue of $3.00B to $3.04B.
TD Cowen analysts said the results were "strong."
"Results demonstrated accelerating adoption of its platform strategy and stronger execution despite the challenging macro. CRWD highlighted its commitment to leveraging AI within its platform and its user conference next month could shed more light on AI strategy."
Oppenheimer analysts agree and add that the results showed the breadth of CRWD's platform.
"We come away positive and view the 2H NNARR outlook as attainable behind increasing platform adoption, growing partnership contributions, and favorable competitive dynamics," they said.
(Additional reporting by Senad Karaahmetovic)