Following the cybersecurity software maker CrowdStrike’s strong fiscal second-quarter results, the company experienced a 4% slip in its shares during extended trading. CrowdStrike reported earnings per share of $1.04 adjusted versus the expected 97 cents, with revenue reaching $963.9 million, surpassing the expected $959 million. Despite the positive financial results, the company suffered a setback due to a global outage that led to a reduction in its full-year guidance.
On July 19, CrowdStrike mistakenly distributed a flawed content configuration update for its Falcon sensor, causing computers running Microsoft Windows operating systems to crash. The error resulted in flight cancelations, delayed package deliveries, and postponed medical appointments. This incident led to significant financial losses for companies like Delta Air Lines, which reported $380 million in lost revenue and $170 million in costs.
In response to the global outage, CrowdStrike’s CEO George Kurtz publicly apologized to clients and partners and rolled out a fix to address the issue. However, shareholders, including Delta Air Lines, have filed suits against the company seeking damages for the losses incurred. Travelers affected by the incident have also filed class-action suits against CrowdStrike.
CrowdStrike revised its guidance for the full year, expecting adjusted net earnings of 80 to 81 cents per share on $979.2 million to $984.7 million in revenue. For the 2025 fiscal year, the company anticipates $3.61 to $3.65 in adjusted earnings per share and $3.89 billion to $3.90 billion in revenue, down from the previous forecast. The revised guidance includes a negative subscription revenue impact of $30 million in each quarter and professional services revenue in the high-single-digit millions of dollars due to incentives for a customer commitment package.
Following the announcement of CrowdStrike’s financial results and guidance revision, investors expressed concern, reflected in the decline of the company’s share price. Before the earnings report, CrowdStrike’s stock had previously seen a 4% increase for the year, while the S&P 500 index had gained 17% over the same period. Executives will discuss these results in detail during a conference call with analysts.
CrowdStrike’s strong performance in the fiscal second quarter was overshadowed by the global outage incident, leading to a reduction in full-year guidance and impacting the company’s financial outlook. The repercussions of the incident, including lawsuits from shareholders and affected customers, highlight the importance of cybersecurity and the potential consequences of system failures in the digital age.
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