Crowdstrike The company reported first-quarter earnings results for its fiscal 2024 on Wednesday, beat top- and bottom line consensus estimates, but shares were down more than 11% after hours due to slower revenue growth.

Here’s how the cybersecurity firm fared against Refinitiv consensus estimates for the quarter ended April 30:

  • earnings per share: 57 cents, adjusted, versus 51 cents expected.
  • Income: $692.6 million, versus the $676.4 million expected.

The 42% year-over-year revenue growth was slower than the 61% growth it posted in the year-ago quarter. CrowdStrike posted a profit of $500,000 per share, or breakeven per share, compared to a loss of $31.5 million, or 14 cents per share, a year earlier.

The company offered current quarter guidance of $717.2 million to $727.4 million, while the consensus range was $698 million to $742 million.

“We exceeded our guidance in both top- and bottom-line metrics,” CEO George Kurtz said on a call with investors. He added that CrowdStrike was “reaching GAAP profitability so early in our life as a public company.” CrowdStrike first started trading on Nasdaq in June 2019.

Chief Financial Officer Bert Podbere said that CrowdStrike’s slow hiring contributed to the company’s profitability. He indicated that it was not clear whether the increase in hiring would be able to sustain profitability.

Like many other technology executives, Kurtz stresses his company’s use of generic artificial intelligence models, calling it a democratizing force in cyber security from both an “adversarial” and a protective perspective.

Annualized recurring revenue for the quarter was $2.73 billion, an increase of 42% year-over-year. Net new ARR for the quarter was $174.2 million, down from $190.5 million in the year-ago quarter.

CrowdStrike offers a portfolio of cloud-based cyber security solutions advertised as a comprehensive package for everything from corporate servers to employee laptops to Internet of Things devices.

With cross-strait tensions rising in recent months, cyber security concerns have begun to attract the attention of investors and the general public. earlier this month, Microsoft China has been warned that state-sponsored cyber attackers have infiltrated “critical” infrastructure in the continental US and the US territory of Guam.

The vulnerability exploited by those Chinese hackers “affected” the US Navy and many other organizations. CrowdStrike researchers helped assemble the National Security Agency’s bulletin on the attack. Senior government officials have emphasized that a healthy public-private partnership is vital to understanding and preventing cyber security threats.

Cyber ​​concerns have also been a growing priority for the US Department of Justice, which has been involved in several so-called “dark web” enforcement actions over the past few months.