CrowdStrike (NASDAQ:CRWD) stock was up as much as 4% in morning trading after the company received a key authorization from the U.S. Department of Defense and provided a new, higher annual recurring revenue (ARR) target. CrowdStrike is an IT security company.
Yesterday after the stock markets closed, CrowdStrike stated that it had received “a Provisional Authorization to Operate (P-ATO) at Impact Level 4 (IL-4).” As a result, the company said that it would be able to provide its “Falcon cybersecurity platform to a broad range of Department of Defense (DoD) and Defense Industrial Base (DIB) customers.” These customers will use Falcon to defend their controlled, unclassified information, CrowdStrike explained.
What Happened With CRWD Stock?
Separately, the company yesterday said that it would seek to generate annual recurring revenue (ARR) of over $5 billion by its fiscal 2026. Previously, CrowdStrike had set a target of $3 billion of ARR by fiscal 2026. Now the company believes that it can attain $3 billion of ARR by 2024, Barron’s reported. To achieve this accelerated revenue timeline, the company says it will focus on developing new products and growing its market share.
“We expect to achieve this [target] by executing and continuing to focus on customer outcomes, our technology and platform, our people, and executing on our market opportunity,” CrowdStrike CEO George Kurtz said, according to Barron’s.
Over the last month, CRWD stock has gained 32%, although it has only climbed 13% in the last 12 months. The shares trade at a price-sales ratio of 28.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.