CrowdStrike Holdings, Inc. (NASDAQ:CRWD) shares were trading 3% lower today, despite the company posted Q2 beat and raise on Tuesday.

The company delivered Q2 revenue of $337.7 million beating the consensus estimate of $323.13 million. Annual Recurring Revenue (ARR) was $1.34 billion, representing an increase of 70% year-over-year, with a record net new ARR of $150.6 million.

The company’s management raised its full 2022-year EPS guidance to $0.43-$0.49, beating the Street expectation of $0.40, and revenue guidance to $1.391-1.408 billion, compared to the consensus estimate of $1.36 billion.

The company’s shares dropped despite the quarterly beat, as investors are concerned about the growth of ARR. New business ARR of $157 million in Q2 represents a growth of 45% year-over-year, which is lower compared to the previous quarter's 63% growth.