CrowdStrike CEO George Kurtz spoke at the Wall Street Journal technology live conference on October 21, 2019 at Laguna Beach, California.
Martina Albertazzi | Bloomberg | Getty Images
Crowdstrike Shares fell 10% Issuing weak revenue guidance As companies signal constant pressure to it Global IT outages shocked businesses in July.
Cybersecurity software providers said it expects first-quarter earnings to range from 64 cents to 66 cents per share, compared with an average estimate of 95 cents. CrowdStrike expects earnings for the year to be between $3.33 and $3.45 per share, excluding commodities. That’s $4.42 expected by analysts voted by LSEG.
During this period, CrowdStrike’s net loss was $92.3 billion, or 37 cents a share, and net income was $53.7 million, or 22 cents a share. The company also reported $21 million in incident-related expenses and $49.9 million in acquisition-related tax expenses.
The company also said it expects the July update to stimulate global IT blackouts, taking root in flights and sabotaging businesses, and expecting another $73 million in fees in the first quarter. CrowdStrike estimates an additional $43 million in cost due to certain transaction packages offered.
CrowdStrike said during the call that the power outage also made free cash flow margins weight, which is expected to return 30% or more in the fiscal year 2027.
Many on Wall Street expect the headwinds starting in the July issue to ease in the new fiscal year, with Peter Weed of Bernstein expecting numerous CrowdStrike net retention rates in the new fiscal year.
“While the FY26 guidance marks a conservative start to this year, we think management is laying the foundation for a return to the rhythm and elastic rhythm we saw before the power outage,” wrote Brian Essex of JPMorgan Chase.
CrowdStrike’s disappointing guidance offsets the exceeding expectations for the fourth quarter results. The company’s revenue was $1.06 billion, at $1.03 per share, and said revenue was up 25% from the same period last year.
CEO and founder George Kurtz called the company a “return story” during a conference call with analysts on Tuesday.
“I spent a year testing CrowdStrike for our participation with our clients, partners, prospects,” he said. “The fourth quarter showed off the fruits of our labor, which gave me a firm belief in our AI local, single platform, excellent execution and accelerated market opportunities.”
