(Bloomberg) — CrowdStrike Holdings Inc. issued a weaker-than-expected earnings forecast, disappointing investors who were watching for signs that the cybersecurity company had recovered from a flawed update that crashed 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 in a statement Tuesday. Analysts had expected 87 cents, according to estimates compiled by Bloomberg.
Shares of CrowdStrike fell about 5% in extended trading after the results were announced.
The report is the company’s second since a flawed CrowdStrike update crashed millions of devices running Microsoft Corp.’s Windows systems. worked. The outage, which occurred on July 19, disrupted a wide range of industries, including aviation, banking and healthcare. The company posted revenue that exceeded expectations three months ago, a sign that investors said meant the global IT outage would not have a significant impact on its finances.
Third-quarter revenue was a bright spot in Tuesday’s report. Revenue for the period was $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 $3.92 billion to $3.93 billion. Analysts expected $3.9 billion.
The company also surpassed $4 billion in annual recurring revenue as of Oct. 31, making CrowdStrike “the fastest and only pure-play cybersecurity software company to reach this reported milestone,” CEO George Kurtz said in the statement.
Delta Airlines’ operations were hampered for days as a result of the outage, costing the airline at least $500 million in own losses, according to a lawsuit it filed against CrowdStrike in October. CrowdStrike said in a statement at the time that Delta was shifting blame “for its inability to update its outdated IT infrastructure.”
“After this summer’s incident, we were tested as a company,” Kurtz said in a call with investors on Tuesday. “We responded quickly, carefully and decisively and focused on getting even better.”
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