Crowdstrike Holdings Inc (NASDAQ:CRWD) stock rose 10.09% (As on November 29, 11:47:02 AM UTC-4, Source: Google Finance) after the company raised its annual guidance after reporting third-quarter results that topped Wall Street estimates as a ramp-up in cybersecurity subscription revenue boosted performance. Annual recurring revenue, or ARR, grew to 35% year-over-year to reach $3.15B as of Oct. 31, of which $223.1 million was added in the quarter. Subscription gross margin improved, with GAAP and non-GAAP subscription gross margins at 78% and 80%, respectively. Income from operations also saw a dramatic shift from a loss of $56.4 million in Q3 FY2023 to a GAAP income of $3.2 million in Q3 FY2024. Non-GAAP income from operations more than doubled to $175.7 million. Net cash generated from operations was $273.5 million, and free cash flow was $239.0 million, both setting records for the company in the third quarter. The company’s cash, cash equivalents, and short-term investments stood at $3.17 billion as of October 31, 2023. The company’s focus on operational excellence has led to record profitability, with GAAP net income attributable to CrowdStrike reaching $26.7 million, a substantial improvement from a net loss of $55.0 million in the same quarter of the previous fiscal year.

Further, strategically, CrowdStrike has continued to innovate and expand its offerings. The company’s module adoption rates demonstrate strong customer engagement, with 63%, 42%, and 26% of customers adopting five or more, six or more, and seven or more modules, respectively. CrowdStrike also made significant strides in the industry, achieving perfect scores in MITRE Engenuity ATT&CK Evaluations and becoming the first cloud-founded cybersecurity ISV to exceed $1 billion in sales through AWS Marketplace.

CRWD in the third quarter of FY 24 has reported the adjusted earnings per share of 82 cents, beating the analysts’ estimates for the adjusted earnings per share of 74 cents. The company had reported the adjusted revenue growth of 35 percent to $786 million in the third quarter of FY 24, beating the analysts’ estimates for revenue of $624.77 million.

For Q4, the company forecast adjusted EPS in a range of $0.81 to $0.82 on revenue of $836.6M to $840M, compared with estimates for $0.78 on revenue of $836.78M.

Looking further ahead, the company now expects adjusted EPS in a range of $2.95 to $2.96 on revenue of $3.047B to $3.050B, up from a prior range of $2.80 to $2.84 on revenue between $3.031B and $3.043B.