CrowdStrike shares fall as billings miss overshadows earnings and revenue beats
Shares of CrowdStrike Holdings Inc. fell more than 9% in late trading today after the cybersecurity company beat earnings and revenue estimates in its fiscal 2027 first-quarter but disappointed investors with softer-than-expected billings.
For the quarter that ended on April 30, CrowdStrike reported adjusted earnings per share of $1.10, up from 73 cents in the same quarter a year earlier, on revenue of $1.39 billion, up 26% year-over-year. Analysts had been expecting $1.07 per share on revenue of $1.36 billion.
The miss that mattered was billings, which came in at $1.35 billion, up 18% year-over-year but short of what analysts had penciled in. CrowdStrike shares had climbed nearly 60% this year before the report, so a beat on the headline numbers was not enough to satisfy investors who had already priced in a strong quarter.
Annual recurring revenue grew 24% year-over-year, to $5.51 billion as of April 30, of which a record $255.8 million was net new annual recurring revenue added in the quarter, up 32% from a year earlier. Net cash generated from operations was a record $590.9 million, up from $384.1 million in the same quarter last year, and free cash flow hit a record $468.5 million. CrowdStrike ended the quarter with $4.55 billion in cash and cash equivalents.
