(Bloomberg) — CrowdStrike Holdings Inc. issued a weaker-than-expected earnings forecast, disappointing investors who have been watching for signs that the cybersecurity company has recovered from a faulty update that bricked computers around the world. .
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Adjusted earnings will be 84 cents to 86 cents per share in the fiscal fourth quarter, CrowdStrike said Tuesday in a statement. Analysts had expected 87 cents, according to estimates compiled by Bloomberg.
CrowdStrike shares fell about 5% in extended trading after the results were announced.
The report is the company’s second since a faulty CrowdStrike update bricked millions of devices running Microsoft Corp’s Windows systems. The outage, which occurred on July 19, affected a wide range of industries, including air travel, banking and healthcare. The company posted sales three months ago that beat expectations, a sign that investors interpreted the global IT disruption would not significantly affect its finances.
Third-quarter revenue represented a bright spot in Tuesday’s report. Sales for the period amounted to $1.01 billion, exceeding Wall Street expectations. Earnings, excluding some items, were 93 cents per share, compared with the average estimate of 81 cents.
CrowdStrike also raised its revenue guidance for the full fiscal year to between $3.92 billion and $3.93 billion. Analysts expected $3.9 billion.
The company also surpassed $4 billion in trailing annual recurring revenue as of Oct. 31, making CrowdStrike “the only and fastest cybersecurity software company to reach this reported milestone,” CEO George Kurtz said in a statement. the statement.
Delta Airlines’ operations were paralyzed for days as a result of the outage, costing the airline at least $500 million in out-of-pocket losses, according to a lawsuit it filed against CrowdStrike in October. CrowdStrike said Delta was taking the blame “for failing to update its aging IT infrastructure,” in a statement at the time.
“After the incident this summer, we were tested as a company,” Kurtz said on a call with investors Tuesday. “We responded quickly, carefully and decisively and focused on being even better.”
(Updates with additional information in the sixth and seventh paragraphs.)