George Kurtz, CEO of CrowdStrike, speaks at the Wall Street Journal Tech Live conference in Laguna Beach, Calif., on October 21, 2019.
Martina Albertazzi | Bloomberg | Getty Images
Crowd Strike Microsoft shares rose 4% in extended trading Wednesday after the cybersecurity software maker reported strong second-quarter financial results but lowered full-year guidance in the wake of a global outage.
Here's how the company performs compared to the LSEG consensus:
Earnings per share: $1.04 adjusted vs. 97 cents expected Revenue: $963.9 million vs. $959 million expected
CrowdStrike’s revenue rose 32% year over year in the quarter that ended July 31, according to a statement. The company reported net income of $47 million, or 19 cents per share, compared with $8.47 million, or 3 cents per share, in the same quarter a year earlier.
Annual recurring revenue was $3.86 billion, slightly above the StreetAccount consensus of $3.85 billion.
On July 19, CrowdStrike distributed a flawed content configuration update for its Falcon sensor to Windows 10 computers. Microsoft Windows operating systems, with the goal of gathering data on new attacks. The bug caused millions of computers to crash, leading to flight cancellations, delayed package deliveries and postponed medical appointments. Administrators had to manually reboot affected computers.
CEO George Kurtz apologized to customers and partners and said the company had come up with a solution. Meanwhile, investors were driving down CrowdStrike’s stock price. Shareholders have filed a lawsuit against the company, Delta Air LinesCrowdStrike, which said it lost $380 million in revenue and $170 million in costs because of the incident, said it would seek compensation. Passengers have also filed class action lawsuits against CrowdStrike.
“All clients are looking for some kind of discount,” BTIG’s Gray Powell and Trevor Rambo wrote in an Aug. 23 note, with a hold rating on CrowdStrike shares.
In terms of guidance, CrowdStrike called for adjusted net earnings of 80 cents to 81 cents per share on revenue of $979.2 million to $984.7 million.
For fiscal 2025, CrowdStrike now expects adjusted earnings per share in the range of $3.61 to $3.65 and revenue in the range of $3.89 billion to $3.90 billion. That’s down from management’s June forecast of adjusted earnings per share in the range of $3.93 to $4.03 and revenue in the range of $3.98 billion to $4.01 billion.
Full-year revenue guidance includes a negative impact on subscription revenue of $30 million per quarter and professional services revenue of $1 million in the second half of the fiscal year, due to incentives provided for customer commitment packages, according to the statement. CrowdStrike said the revised guidance excludes costs related to the outage.
Before CrowdStrike reported earnings, its stock was up about 4% this year, while the S&P 500 gained 17% during that time.
Executives are scheduled to discuss the results with analysts on a conference call beginning at 5 p.m. ET.
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