Today is Wednesday, November 30, 2022.
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CrowdStrike's “Sales Cycles”
A drop in new annual recurring revenue (ARR) sent shares of CrowdStrike Holdings (Nasdaq: CRWD) down 19.12% in after-hours trading on Tuesday.
Financials: In its quarterly financial results, CrowdStrike reported earnings of 40 cents per share and revenue of $580.9 million; both were better than expected.
Challenges: However, the company said that the total new ARR was below expectations “as increased macroeconomic headwinds elongated sales cycles with smaller customers and caused some larger customers to pursue multi-phase subscription start dates, which delays ARR recognition until future quarters.”
Stock Price: Shares of CrowdStrike are down 30% this year, including a 14% drop in the last 30 days.
Final Thoughts: This is a stunning result for CrowdStrike. While the company hasn’t been perfect this year, there was an assumption that cybersecurity providers would be fine in this environment. Will other cybersecurity rivals face similar challenges?
Notable Earnings Today: XPeng (NYSE: XPEV), Snowflake (NYSE: SNOW), Petco Health and Wellness (Nasdaq: WOOF), Salesforce (NYSE: CRM), Genius Group (NYSEAMERICAN: GNS), Splunk (Nasdaq: SPLK), Frontline (NYSE: FRO), Okta (Nasdaq: OKTA), Hormel Foods (NYSE: HRL), Pure Storage (NYSE: PSTG), BRP (Nasdaq: DOOO), Five Below (Nasdaq: FIVE), Renalytix (Nasdaq: RNLX), Synopsys (Nasdaq: SNPS), Build-A-Bear Workshop (NYSE: BBW), Victoria's Secret (NYSE: VSCO), Titan Machinery (Nasdaq: TITN), Box (NYSE: BOX), Royal Bank of Canada (TSE: RY), Elastic (NYSE: ESTC), Donaldson (NYSE: DCI), La-Z-Boy (NYSE: LZB), Nutanix (Nasdaq: NTNX), PVH (NYSE: PVH).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: Elastic (Mr. Crowd), canihaveabite (Honeycomb), Aloha Puddin (Honeycomb), EYV Restaurant (Honeycomb), TrialSite News (PicMii), J & J House of Skills (Honeycomb), Clear Water Distilling (StartEngine), Attn: Grace (Republic), Chewbox (Seed At The Table).
Notable Economic Events Today: ADP Nonfarm Employment Change Report (8:15 a.m. ET), GDP (8:30 a.m. ET), Goods Trade Balance (8:30 a.m. ET), Retail Inventories (8:30 a.m. ET), Chicago PMI (9:45 a.m. ET), JOLTs Job Openings (10:00 a.m. ET), Pending Home Sales (10:00 a.m. ET), Crude Oil Inventories (10:30 a.m. ET), Beige Book (2:00 p.m. ET).
Horizon Therapeutics Fielding Offers
Shares of Horizon Therapeutics (Nasdaq: HZNP) jumped 30.52% in after-hours trading on Tuesday after confirming that it might get acquired.
Details: The company said that it is in preliminary discussions with three suitors: Amgen (Nasdaq: AMGN), Janssen Global Services, and Sanofi (Nasdaq: SNY).
What’s Next: Each company must announce that it has the intention to acquire Horizon Therapeutics by no later than January 10.
Stock Price: Tuesday’s announcement was a blessing for the stock, which is down 27% this year.
Final Thoughts: The total price tag to acquire Horizon Therapeutics could exceed $20 billion, according to The Wall Street Journal.
Workday’s $500 Million Share Buyback
There was an 8.51% pop for Workday (Nasdaq: WDAY) in after-hours trading on Tuesday after the company reported positive financial results.
Financials: Workday reported earnings of 99 cents per share and revenue of $1.6 billion; both were better than expected.
Final Thoughts: Workday also announced a $500 million share repurchase program on Tuesday. This really made investors giddy.
Trends to Watch
Taxed: TurboTax maker Intuit lowers revenue guidance for the year (MarketWatch)
Kicked Out: Foot Locker CFO Andrew Page to step down (Reuters)
New Token: Huobi Token Surges After Crypto Exchange Discloses Airdrop of Dominica Coin (CoinDesk)
Crowded Field: Tesla still owns US EV market but is losing market share, shows new data (Electrek)
Nothing to Wine About: Vinovest Lists Bottle & Barrel Securities Offering on Republic (Crowdfund Insider)
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