CrowdStrike stock rises on record Q4 earnings beat, provides upbeat outlook

Yahoo Finance Live’s Ines Ferre breaks down the rise in CrowdStrike's stock following the software company’s record earnings beat.

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INES FERRE: Crowdstrike beat analysts' estimates in the top and bottom line as the cybersecurity company sees a record fourth quarter with earnings forecast above expectations. And just taking a look at what the stock did in after hours, it was up and after hours. It's up in premarket right after the company reported its quarterly results.

And there were some concerns on The Street about cybersecurity market perhaps cooling off a bit because you've got some cash-strapped companies that are trying to cut costs. But this really highlighted the strong performance and also ending the quarter with annual reoccurring revenue of $222 million, which was highlighted by the company. So The Street liking these results.

- Yeah, liking these results and highlighting as well, focusing on that recurring revenue that you just spoke about. And it has been interesting how resilient a lot of-- not all of, but a lot of-- the cybersecurity companies have been.

We sort of had this debate, right? All of these big enterprise software companies and tech companies broadly, or even beyond tech, right, any company that needs cybersecurity, how much were are they going to cut back? That was the big question going into this. They're cutting back on everything else, seemingly.

The CEOs of the cybersecurity companies maintained, this is going to be the thing they're not going to cut. And it doesn't seem to be universally true. We are seeing some delays in contracts, et cetera. But it does seem to be true in a lot of cases here.