Shares of cybersecurity firm CrowdStrike Holdings, Inc. (NASDAQ: CRWD) plummeted 6.7% in after-hours trading on Tuesday, despite reporting better-than-expected fiscal fourth-quarter 2024 results. While the company's revenue and earnings topped estimates, its guidance for the upcoming fiscal year raised concerns about slowing growth and profitability, triggering a sell-off in the stock.

For the quarter ended January 31, 2025, CrowdStrike reported revenue of $1.06 billion, up 25.2% year-over-year, surpassing analysts' expectations of $1.03 billion. Annual recurring revenue (ARR) grew 23.4% to $4.24 billion, indicating strong demand for the company's cybersecurity solutions. Additionally, the company's adjusted earnings per share of $1.03 exceeded the consensus estimate of $0.86.

However, the company's guidance for fiscal 2026 fell short of analysts' projections. CrowdStrike forecasted revenue between $4.74 billion and $4.81 billion, implying a growth rate of around 20.8%, significantly lower than the previous year's 29.6% growth. Furthermore, the company's operating profit guidance of $965 million at the midpoint was below analysts' expectations of $1.02 billion.

Investors appeared to be concerned about the company's rising expenses, which outpaced revenue growth. Operating expenses surged to $870 million from $607 million a year earlier, driven by higher costs in sales and marketing, research and development, and one-time charges related to an outage last year. As a result, CrowdStrike swung to a net loss of $92.3 million in the fourth quarter, compared to a profit of $53.7 million in the same period a year ago.