CrowdStrike is still growing rapidly -- but not fast enough to keep Wall Street analysts happy. Indeed, the cloud-centric EDR (endpoint detection and response) company today issued a Q4 2022 sales forecast that fell short of expectations. CrowdStrike's stock ($CRWD) fell nearly 20% on the news.
Still, it's important to put the news in context -- especially for MSPs and MSSPs that partner closely with the cybersecurity company. Among CrowdStrike's Q3 financial metrics to note:
- Total revenue was $580.9 million, up 53% from $380.1 million in Q3 of fiscal 2022.
- GAAP net loss attributable to CrowdStrike was $55.0 million, compared to $50.5 million in Q3 of fiscal 2022.
CrowdStrike Q4 Revenue Concerns
For MSPs and MSSPs, CrowdStrike's 50-plus percent growth rate remains a very healthy market to target. And CrowdStrike's MSSP partner business had been in growth mode as of mid-2022.
Nevertheless, slowing growth at CrowdStrike could be an early warning for MSPs and MSSPs that lean heavily on the EDR and XDR (eXtended Detection and Response) markets. Those sectors are strong and healthy -- but are the biggest growth years behind us?
In the case of CrowdStrike, Q4 2022 revenues are expected to be in the range of $619.1 million to $628.2 million -- which are roughly $7 million to $15 million short of Wall Street's previous expectations, according to SeekingAlpha.
More Analysis: CrowdStrike vs. SentinelOne
What's the true reality check for MSPs and MSSPs? Some more clues emerged during CrowdStrike's earnings call the evening of November 29, 2022.
The company pointed to some macroeconomic challenges -- but also mentioned continued partner momentum. For instance, partner-sourced ARR grew a strong 55% year-over-year in Q3, CFO Burt Podbere said. Translation: Partners still appear to be winning big with CrowdStrike -- despite investor concerns on Wall Street.
For an additional reality check, we plan t0 listen closely to rival SentinelOne's earnings call on Tuesday, December 6. Stay tuned.