Cybersecurity stocks surged on Thursday, October 5, 2023, following positive Q2 earnings reports from CrowdStrike (CRWD) and Okta (OKTA). CrowdStrike’s stock increased by 20%, while Okta’s rose nearly 30%, driven by strong demand for security solutions, particularly regarding AI workloads and identity protection.
CrowdStrike reported Q2 revenue of $1.47 billion, a 26% year-over-year increase, exceeding estimates by 2%. Adjusted earnings per share rose to $0.31, surpassing expectations of $0.29. Annual recurring revenue reached $5.84 billion, with net new ARR surging 51% to $333 million. Okta’s Q2 revenue also exceeded expectations at $805 million, up 11% year-on-year, with adjusted EPS climbing to $1.05.
Following these results, CrowdStrike’s full-year revenue outlook was updated to $5.99-$6.01 billion, while Okta projected Q3 revenue of $813-$817 million and raised its fiscal 2027 outlook to $3.216-$3.226 billion. Both companies showcase strong growth, but Okta currently holds a more attractive valuation compared to CrowdStrike.
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