CrowdStrike (NASDAQ:CRWD) shares plunged mid-morning Wednesday after the cybersecurity company’s subscription numbers came in below analyst forecasts. CrowdStrike reported better than expected profit and revenue for its latest quarter, but economic uncertainty is prompting customers to delay spending.
Revenue was $580.9 million, a 53% increase, compared to $380.1 million in the third quarter of fiscal 2022. Subscription revenue was $547.4 million, a 53% increase, compared to $357.0 million in the third quarter of fiscal 2022.
Annual Recurring Revenue (ARR) increased 54% year-over-year and grew to $2.34 billion as of October 31, 2022, of which $198.1 million was net new ARR added in the quarter. The acquisition of Reposify contributed less than $1.0 million to net new ARR in the third quarter of fiscal 2023.
GAAP net loss attributable to CrowdStrike was $55.0 million, compared to $50.5 million in the third quarter of fiscal 2022. GAAP net loss per share attributable to CrowdStrike, basic and diluted was $0.24, compared to $0.22 in the third quarter of fiscal 2022.
CEO George Kurtz said, ““CrowdStrike delivered robust growth at scale, strong retention rates, growing module adoption, record net new ARR from emerging products and a record number of customers contributing at least $1 million to net new ARR,” However, total net new ARR was below our expectations as increased macroeconomic headwinds elongated sales cycles with smaller customers and caused some larger customers to pursue multi-phase subscription start dates, which delays ARR recognition until future quarters.
CRWD was pummeled $25.73, or 18.6%, to $112.28.
