Cybersecurity technology firm CrowdStrike (NASDAQ: CRWD) reported a narrower net loss for the third quarter of 2020, helped mainly by strong subscription growth. The results also topped Wall Street’s projection, driving the stock higher during Thursday’s after-hours trading session.
Net loss, on an adjusted basis, was $0.07 per share in the October-quarter, compared to a loss of $0.64 per share last year. Analysts were looking for a wider loss. On an unadjusted basis, the company recorded a loss of $35.5 million or $0.17 per share, compared to a loss of $42.3 million or $0.93 per share in the year-ago period.
Revenues Surge
At $125.1 million, total revenue was up 88% from last year, and above analysts’ consensus forecast. Subscription revenue jumped 98% to $114 million. Annual Recurring Revenue increased 97% year-over-year to $501.7 million as on October 31, 2019, of which $77.9 million was net new ARR added during the quarter.
Record Subscriptions
The company added a record 772 net new subscription customers, taking the total number of subscriptions customers to 4,561 at the end of the quarter.
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CrowdStrike’s CEO George Kurtz said, “Strong demand among organizations across diverse sizes and industries and our frictionless go-to-market engine drove our rapid growth at scale, which we believe continues to demonstrate our growing leadership in the Security Cloud category and ongoing growth potential.”
Outlook
For the fourth quarter of 2020, CrowdStrike expects revenue to be between $135.9 million and $138.6 million. Adjusted net loss is expected to be in the range of $19.1 million to $17.2 million, while adjusted loss per share is estimated at $0.09-$0.08.
For fiscal 2020, the company expects revenues of $465.2-$468.0 million and an adjusted loss of $77.7-$75.8 million. Full-year adjusted loss per share is expected to be between $0.53 and $0.52.
Wipro Tie-up
During the quarter, the company entered into a partnership with information technology consulting firm Wipro, to bring the CrowdStrike Falcon platform to provide comprehensive protection to Wipro’s global customers.
Related: CrowdStrike Q2 2020 Earnings Conference Call Transcript
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CrowdStrike’s stock declined steadily in recent months after hitting the peak in August. The stock has lost about 9% since the company’s Wall Street debut about six months ago. It closed Thursday’s regular session sharply lower but gained during the extended session.