Crowdstrike Holdings Inc (NASDAQ:CRWD) stock plunges 18.60% (As on November 30, 10:38:35 AM UTC-4, Source: Google Finance) after the company gave a revenue outlook for the current period that fell short of analysts’ estimates. The company also said total net new annual recurring revenue was below the company’s expectations amid increased economic headwinds that caused some customers to delay purchases. 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. Additionally, ending ARR for the $1 million-plus cohort surpassed the $1 billion milestone in Q3 with a 67% year-over-year growth rate. These larger customers are standardizing on Falcon, consolidating vendors, and prioritizing expansion projects that represent sizable cross-sell and upsell opportunity that are moving forward even under uncertain macro conditions. Non-GAAP subscription gross margin was 78%, compared to 79% in the third quarter of fiscal 2022. Non-GAAP net income attributable to CrowdStrike was $96.1 million, compared to $41.1 million in the third quarter of fiscal 2022.

Moreover, the company has added 1,460 net new subscription customers in the quarter for a total of 21,146 subscription customers as of October 31, 2022, representing 44% growth year-over-year. CrowdStrike’s subscription customers that have adopted five or more, six or more and seven or more modules was 60%, 36% and 21%, respectively, as of October 31, 2022.

CRWD in the third quarter of FY 23 has reported the adjusted earnings per share of 40 cents, beating the analysts’ estimates for the adjusted earnings per share of 32 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 53 percent to $580.8 million in the third quarter of FY 23, missing the analysts’ estimates for revenue by 1.09%. Net cash generated from operations was $242.9 million, compared to $159.1 million in the third quarter of fiscal 2022. Free cash flow was $174.1 million, compared to $123.5 million in the third quarter of fiscal 2022. Cash and Cash Equivalents was $2.47 billion as of October 31, 2022.

The company projected sales of as much as $628.2 million in the fourth quarter, compared with analysts’ average estimate of $634.8 million.