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CrowdStrike (CRWD) gains 5% on strong Q3 earnings

By Robert Davis

22:16, 1 December 2021

Mobile phone with CrowdStrike logo on screen
Software manufacturer CrowdStrike’s stock is up in after-hours trading - Photo: Shutterstock

Investors flocked to cloud-based software manufacturer CrowdStrike’s stock during after-market hours on Wednesday after the company released its third quarter earnings.

The stock gained more than 5% to $210.99 per share, nearly erasing the stock’s losses from a trading session that was mired by the discovery of the Omicron variant on US soil.

So far this year, CrowdStrike’s stock has been flat, but has gained more than 42% over the last 12 months altogether.

Earnings details

According to the Sunnyvale, California-based company’s earnings statement, CrowdStrike brought in revenue of $380.1m (£286.25m) in Q3 2022 compared to the $232.5m it earned in Q3 2021.

The company’s annual recurring revenue (ARR) also increased by 67% to $1.51bn as of 31 October. More than $17m of this ARR was made during Q3 2022, the earnings say.

Still, the company posted a net loss from operations of $40.3m.

George Kurtz, CrowdStrike’s co-founder and chief executive, described the quarterly results as “robust” that reflect “continued strong customer adoption for our core products.”

Customer appreciation

CrowdStrike’s customers seem to be happy with their purchases as the number of those with four or more modules increased by 68% on an annualised basis.


0.62 Price
+2.010% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168


16,032.40 Price
+0.460% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8


2,049.33 Price
+1.700% 1D Chg, %
Long position overnight fee -0.0192%
Short position overnight fee 0.0110%
Overnight fee time 22:00 (UTC)
Spread 0.50

Oil - Crude

76.92 Price
+2.410% 1D Chg, %
Long position overnight fee -0.0187%
Short position overnight fee -0.0032%
Overnight fee time 22:00 (UTC)
Spread 0.030

Customers owning five or more modules increased by 55% while those with six or more increased by 34%, the company said.

At the same time, CrowdStrike added another 1,600 subscribers to its roster in Q3, bringing its total up to 14,687 as of 31 October.

CrowdStrike also took steps to protect its customers during the quarter by acquiring SecureCircle, a cybersecurity software-as-a-service maker, and using its endpoint security technology.


CrowdStrike increased its guidance looking ahead to Q4 and the full fiscal year.

Next quarter, the company expects to bring in revenues between $406.5m and $412.3m with per share earnings between $0.19 and $0.21.

For the full year, CrowdStrike estimates it will earn revenue between $1.42bn and $1.43bn with EPS of $0.57 and $0.59 for its shareholders.

Read more: CrowdStrike (CRWD) stock forecast 2021-2025: strong earnings make it a top growth stock pick

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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