CrowdStrike (CRWD) presented little clarity on the timing and scale of a fiscal H2 reacceleration of net new annual recurring revenue after Q4 results topped estimates by analysts, UBS Securities said Wednesday in a report.
On Tuesday, CrowdStrike issued Q1 and full-year earnings guidance that trailed market estimates. The outlook for operating margins "was below expectations" this year, and free cash flow "margin commentary also suggested pressure," UBS said.
Still, CrowdStrike's "platform adoption metrics continue to get strong" with expansion in the cloud segment, the security information and event management business and the identity and exposure management division, the report said.
"We see the growth rate across these modules as particularly strong given the ongoing use of customer commitment packages," UBS said.
UBS cut its price target on CrowdStrike stock to $425 from $450 and maintained its buy rating.
CrowdStrike shares slumped 9% in recent Wednesday trading.
Price: 355.02, Change: -35.15, Percent Change: -9.01
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