New York: Cybersecurity firm CrowdStrike has raised its annual revenue and profit projections, reporting a strong third-quarter performance driven by increasing demand for cybersecurity services. The company continues to benefit from the growing need for robust digital protection as cyber threats such as online hacking and digital fraud escalate.
CrowdStrike’s comprehensive suite of cybersecurity services is becoming an essential investment for businesses seeking to protect themselves from the rising tide of cybercrime. High-profile targets of cyberattacks this year include major companies such as AT&T, Live Nation Entertainment’s Ticketmaster, and UnitedHealth Group, highlighting the widespread threat of digital breaches.
Despite its strong performance, CrowdStrike shares fell by about 2% in extended trading after its fourth-quarter revenue forecast failed to meet investor expectations.
“Despite expected headwinds from the July 19th incident, we saw incredible success with our customer commitment packages as customers embraced the program and chose to deepen their relationship with CrowdStrike,” said CFO Burt Podbere.
CrowdStrike now expects annual revenue between $3.92 billion and $3.93 billion, revising its previous forecast of $3.89 billion to $3.90 billion. This is above analysts’ average estimate of $3.90 billion, according to data compiled by LSEG.
In a note ahead of the results, JP Morgan analysts expressed optimism, predicting a “reacceleration” in growth and profitability despite short-term pressures from the earlier outage. Similarly, competitor Palo Alto Networks surpassed estimates for its first quarter, benefiting from strong November spending.
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CrowdStrike also raised its annual adjusted profit per share forecast to a range of $3.74 to $3.76, up from its previous estimate of $3.61 to $3.65.
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For the third quarter, which ended on October 31, CrowdStrike’s revenue grew by approximately 29%, reaching $1.01 billion—surpassing estimates of $982.4 million. The company expects fourth-quarter revenue to be between $1.03 billion and $1.04 billion, in line with analysts’ estimates of $1.03 billion.
