*UKHotViewsExtra* CrowdStrike warns of macro headwinds impacting growth

Investors were spooked yesterday as CrowdStrike shares fell ~15% on news that the company sees macro headwinds impacting growth.

For Q3 FY23, CrowdStrike reported total revenue of $580.9m, a 53% increase yoy. Subscription revenue grew 53% yoy, whilst professional services revenue was $33.5m, representing 46% yoy growth. Net loss was $55m ($50.5m in Q3 FY22), but with plenty of cash in the bank this is not a concern. The company continues to invest heavily in R&D, sales and marketing, looking to strengthen and consolidate its position in the market. In terms of geographic performance, the U.S. grew 46% and international revenue grew 72% yoy.

However, despite posting still very strong growth it was commentary around increased macroeconomic headwinds that caught investors attentions with Q3 net new ARR below expectations. Management said it is seeing organisations starting to respond to macroeconomic conditions by adding extra layers of required approvals and extending the time to close deals.

Despite a limited UK presence, as one of the largest providers of security software CrowdStrike are a good bell weather for cybersecurity spending, especially for cloud and platform-based security solutions.

TechMarketView subscribers, including UKHotViews Premium subscribers, can read more about the company’s performance and what the impact of these macro headwinds may mean for UK enterprise customers in our UKHotViewsExtra article - CrowdStrike warns of macro headwinds impacting growth

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Posted by Simon Baxter at '09:26' - Tagged: cybersecurity   economy