This was the company’s first earnings report since its June IPO.
Shares of CrowdStrike jumped nearly 15% on Friday after investors got a look at the company’s first earnings report since its IPO. This added more than $2 billion to the company’s market cap, bringing it to $16.7 billion.
The cybersecurity company has been beating investor expectations on all fronts since going public in June. The company raised over $600 million at its IPO and its shares have consistently outperformed its initial asking price of $34 per share. As of Friday, CrowdStrike’s stock is up 150% from its IPO price.
What You Should Know About the Report
During the company’s fiscal first quarter, CrowdStrike lost money but increased its overall revenue. The company lost 47 cents per share, which is on track with what investors expected. However, the company earned $96.1 million in revenue as opposed to the $95.6 million estimated.
In some ways, it’s surprising that the company’s shares went up so much. After all, the company didn’t beat out investor expectations by much. However, investors were likely encouraged by a spike in momentum from both new and existing customers.
For example, the company’s revenue growth was largely thanks to a sudden surge in new customers. CrowdStrike added 543 new subscription customers during the first quarter, bringing the company’s customer count to 3,059. The company’s customer base ranges from large enterprise clients to small mid-market companies.
Not only was CrowdStrike able to expand its client base, but it did a good job upselling its current customers. The company’s dollar-based net retention rate was up more than 140% during the first quarter, beating its baseline of 120% or higher.
CrowdStrike Has Yet to Turn a Profit
Of course, it can’t be overlooked that CrowdStrike still hasn’t turned a profit. During the first quarter, the company posted losses of $26 million. And while the company’s revenue continues to increase, so does its operating expenses. So the bottom line didn’t move by much.
However, CrowdStrike does seem to be moving in the right direction. Investors should be encouraged by the company’s ability to attract new customers. And as more companies move to the cloud, these strong tailwinds should continue to propel CrowdStrike forward.
