CrowdStrike CEO George Kurtz speaks at the Wall Street Journal Technology Live conference in Laguna Beach, California, on October 21, 2019.
Martina Albertazzi | Bloomberg | Getty Images
mass strike The maker of cybersecurity software reported strong second-quarter results on Wednesday but cut its full-year guidance due to global network outages. The company’s shares fell 4% in after-hours trading on Wednesday.
Here’s how the company performed against the LSEG consensus:
- Earnings per share: Adjusted $1.04, expected 97 cents
- income: $963.9 million vs. $959 million expected
CrowdStrike’s revenue rose 32% annually in the quarter ended July 31, according to one company statement. The company’s net income was $47 million, or 19 cents a share, compared with $8.47 million, or 3 cents a share, a year earlier.
Annual recurring revenue was $3.86 billion, slightly above StreetAccount’s consensus forecast of $3.85 billion.
On July 19, CrowdStrike distributed a flawed content configuration update for its Falcon sensor to running Microsoft Windows operating system to collect information about new attacks. error caused Millions of computers crashresulting in canceled flights, delayed package deliveries and postponed medical appointments. Administrators must manually restart affected computers.
CEO George Kurtz Apologized Disclose to customers and partners and indicate that the company has rolled out a solution. At the same time, investors push down CrowdStrike’s share price. A shareholder has filed a lawsuit against the company, and Delta Air Lineswhich cited $380 million loss of income and $170 million in losses caused by the incident, and said it would seek damages. Travelers have also filed a class action lawsuit against CrowdStrike.
“All customers are looking for some kind of discount,” BTIG’s Gray Powell and Trevor Rambo wrote in an Aug. 23 report, with their ratings equivalent to CrowdStrike stock has a Hold rating.
In terms of guidance, CrowdStrike expects adjusted net profit of 80 cents to 81 cents per share on revenue of $979.2 million to $984.7 million.
For fiscal 2025, CrowdStrike currently expects adjusted earnings of $3.61 to $3.65 per share and revenue of $3.89 billion to $3.9 billion. That’s below management’s June forecast of adjusted earnings of $3.93 to $4.03 per share and revenue of $3.98 billion to $4.01 billion.
Full-year revenue guidance includes a negative impact of $30 million per quarter on subscription revenue, as well as multi-million dollar professional services revenue in the second half of the fiscal year due to incentives from client commitment packages, according to the statement. CrowdStrike said the adjusted guidance does not include costs related to outages.
CrowdStrike’s shares were up about 4% this year ahead of its earnings report, while the S&P 500 has gained 17% over the same period.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.
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