CrowdStrike raises annual forecast on steady cybersecurity demand

CYBERSECURITY firm CrowdStrike raised its annual revenue and profit forecasts and beat third-quarter revenue on Tuesday (Nov 26), betting on growing demand for cybersecurity services amid growing online threats.

Businesses are increasingly investing in Crowdstrike’s comprehensive cybersecurity services to combat the widespread threat of online hacking and digital fraud.

Several companies, including AT&T, Live Nation Entertainment’s Ticketmaster unit and UnitedHealth Group have been targeted by online hacking attempts this year.

Shares of Crowdstrike were down about 2 per cent in extended trading after its fourth-quarter revenue forecast failed to impress investors.

“Despite expected headwinds from the July 19th incident. We saw incredible success with our customer commitment packages as customers embraced the programme and chose to deepen their relationship with CrowdStrike,” CFO Burt Podbere said.

CrowdStrike expects its annual revenue to be between US$3.92 billion and US$3.93 billion, compared with its prior expectations of US$3.89 billion to US$3.9 billion. Analysts on average were expecting US$3.90 billion, according to data compiled by LSEG. JP Morgan analysts said in a note ahead of the results that they expect “reacceleration” of growth and profitability, despite the near-term pressure from the outage.

Similarly, rival Palo Alto Networks beat estimates for its first quarter, benefiting from robust spending in November.

CrowdStrike now expects its annual adjusted profit per share to be between US$3.74 and US$3.76, up from its previous estimate range of US$3.61 to US$3.65.

The company’s revenue for the third quarter, which ended Oct.31, rose about 29 per cent to US$1.01 billion, beating estimates of US$982.4 million.

CrowdStrike expects fourth-quarter revenue to be between US$1.03 billion and US$1.04 billion, compared to analysts’ estimates of US$1.03 billion. REUTERS