CrowdStrike (CRWD.US) fell in after-hours trading after a disappointing Q4 earnings guidance.

Market IntelTuesday, Nov 26, 2024 8:50 pm ET

1min read

Investors have been watching whether cybersecurity company CrowdStrike (CRWD.US) has recovered from a botched software update that caused a brief global Windows operating system crash. However, the company's latest guidance was disappointing, suggesting that it still needs some time. CrowdStrike fell more than 5% after the market closed on Tuesday.

CrowdStrike reported third-quarter revenue of $1.01 billion, topping analysts' average estimate of $983 million; adjusted EPS of $0.93, topping analysts' average estimate of $0.81.

CrowdStrike expects adjusted EPS of $0.84 to $0.86 in the fourth quarter, below analysts' average estimate of $0.87. The company also raised its full-year revenue forecast to $3.92 billion to $3.93 billion, slightly above analysts' average estimate of $3.9 billion.

CrowdStrike CEO George Kurtz noted that the company's annual recurring revenue exceeded $4 billion as of October 31, making it "the fastest and only cybersecurity software company to achieve this milestone."

A July 19 update from CrowdStrike caused a massive global Windows system crash that affected businesses across industries, leading to flight cancellations, medical procedures being canceled or interrupted, disruptions in financial services such as stock trading, and major shows being canceled.

"We were tested as a company after the events of the summer," George Kurtz said. "We responded quickly, cautiously, and resolutely, and we focused on getting better." CrowdStrike also said that Delta Air Lines is trying to shift blame for "failing to update its outdated IT infrastructure" in its lawsuit against the company.

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