MW CrowdStrike hits a sales milestone in first full quarter after sparking IT outage
By Emily Bary
An executive says the cybersecurity company 'saw incredible success with our customer commitment packages' meant to appease customers after the July incident
How did CrowdStrike Holdings Inc. do in the first full quarter since it triggered an information-technology outage with a faulty software update? Its latest results were a beat.
The cybersecurity company on Tuesday posted fiscal third-quarter revenue of $1.01 billion, up 29% from a year before. The FactSet consensus was for $983 million. This marked the first quarter in which CrowdStrike $(CRWD)$ exceeded $1 billion in revenue.
The company also topped expectations on adjusted earnings per share, which came in at 93 cents, well above the 81-cent FactSet consensus. On a GAAP basis, CrowdStrike posted a net loss of $16.8 million, or 7 cents a share, versus net income of $26.7 million, or 11 cents a share, in the year-prior period.
"Our third-quarter results reflect our focused execution and financial discipline, which drove a strong finish and quarter-over-quarter increase in pipeline, despite expected headwinds from the July 19th incident," Burt Podbere, the company's chief financial officer, said in a release. He was referring to the day when CrowdStrike's faulty software update temporarily bricked computers, with implications across many different sectors.
In response to the incident, CrowdStrike offered concessions to customers through customer-commitment packages. "We saw incredible success with our customer-commitment packages as customers embraced the program and chose to deepen their relationship with CrowdStrike," Podbere continued.
Despite beats on its headline financials for the latest quarter, CrowdStrike's stock was moving about 3% lower in Tuesday's extended session.
Investors may be taking issue with the fact that CrowdStrike's sales forecast just bracketed the consensus view. The company expects fourth-quarter revenue of $1.029 billion to $1.035 billion. Analysts had been modeling $1.03 billion.
CrowdStrike also anticipates 84 cents to 86 cents in adjusted earnings per share for the fourth quarter, whereas analysts were looking for 86 cents.
-Emily Bary
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November 26, 2024 17:14 ET (22:14 GMT)
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