CrowdStrike (NASDAQ: CRWD) shares slipped following its fiscal Q1 results, even as the company significantly raised its full-year annual recurring revenue (ARR) guidance.
Nonetheless, the cybersecurity stock is still up more than 50% for the year
With the company continuing to produce strong growth, let’s see if investors should buy the dip in the stock. Strong growth continues CrowdStrike said the cybersecurity industry hit an inflection point in the quarter, with Anthropic’s Mythos revelation underscoring the importance of cybersecurity for artificial intelligence (AI) infrastructure. It said this helped shift the narrative from fear that AI would disrupt cybersecurity to organizations wanting to ensure they were protected from AI.
As a result, the company increased its full-year ARR growth forecast to 27% to 29%, up from a prior outlook of 23% to 24%. During the quarter, the company saw ending ARR jump 24% to $5.51 billion. Net new ARR, meanwhile, climbed 32% to $256 million.