The internet outage affected 8.5 million Microsoft Windows devices and led to mass flight cancellations.
Chief Executive George Kurtz said the incident delayed some of the company’s deals to later quarters, but most remain “in the pipeline.”
Analysts had expected the reputational hit could hurt CrowdStrike’s dominant position, but the cost of switching providers could prevent a larger effect. Its shares fell more than 3% in after-hours trading.
Chief Financial Officer Burt Podbere said the company’s challenges would persist for about a year and that a further acceleration of growth was expected in the second half of next year.
He said that annual income forecast would be affected by the customer commitment package that will cost $60 million in the second half.
Discover the stories that interest you
“The customer support package and Falcon Flex (which was in place before the outage) are CrowdStrike’s moves to build trust and accelerate adoption of the platform following the July 19 outage,” said Shrenik Kothari, a principal industry analyst at Baird. Large enterprises are spending heavily on cybersecurity products amid a surge in digital scams and high-profile attacks, which have hit companies including UnitedHealth Group, Microsoft and US oil services firm Halliburton.
CrowdStrike expects full-year revenue of $3.89 billion to $3.9 billion, compared with its previous expectations of $3.98 billion to $4.01 billion. Analysts, on average, had expected $3.95 billion.
Rivals SentinelOne and Palo Alto Networks raised their annual revenue forecasts this month, a sign they were gaining market share.
CrowdStrike expects adjusted annual earnings per share to be between $3.61 and $3.65, compared with prior estimates of $3.93 to $4.03.
“The general view is that the sky is not falling in light of the July 19 blackout,” said TD Cowen analyst Shaul Eyal, adding that second-quarter results and guidance were “better than feared.”
Its second-quarter revenue rose about 32% to $963.9 million, beating estimates of $958.6 million, and it reported adjusted earnings per share of $1.04, above expectations of 97 cents.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.