CrowdStrike has revised its annual revenue and profit outlook upwards for the full fiscal year 2025 (FY25) ending on 31 January 2025, claiming sustained demand for its cybersecurity offerings.
The US-based firm raised its full fiscal year revenue forecast to a range of $3.92bn to $3.93bn, up from its previous estimate of $3.89bn to $3.9bn. The company also lifted its adjusted annual profit expectations to $3.74-$3.76 per share, up from $3.61-$3.65 per share, exceeding analyst projections.
For the fourth quarter of FY25, the company expects revenue between $1.03bn and $1.04bn, aligning with analysts’ estimates of $1.03bn. Nevertheless, CrowdStrike’s shares dipped by 2% in after-hours trading as the guidance failed to impress some investors.
CrowdStrike’s positive forecast comes despite a significant service disruption in July that affected systems globally and led to legal challenges.
“Following the summer’s incident as a company, we were tested. We responded with speed, care and resolve, and we focused on becoming even better, continuing to deliver industry-leading cyber protection on the Falcon platform’s proven, resilient and scaled AI native architecture,” said CrowdStrike CEO George Kurtz during the firm’s earnings call.
The company reported results for its third quarter (Q3) FY25, ending 31 October 2024, with a 29% year-on-year (YoY) revenue growth to $1.01bn, surpassing analysts’ estimates of $982.4m. Subscription revenue rose 31% to $962.7m, demonstrating the increasing adoption of the company’s cybersecurity platform. Annual recurring revenue (ARR) also climbed 27% to $4.02bn, with $153m in net new ARR added during the quarter.
However, the quarter was not without challenges. CrowdStrike posted a $16.8m net loss, equivalent to $0.07 per share, compared to a $26.7m profit in the same period in FY24. The loss was attributed to rising expenses, including costs associated with the fallout from the faulty software update incident. The incident disrupted Microsoft Windows-based systems, grounded thousands of flights, and led to Delta Air Lines suing CrowdStrike for $500m in damages.
CrowdStrike expands product offerings and strategic partnerships
In response to the challenges the company faced, CrowdStrike unveiled new offerings at its annual Fal.Con cybersecurity conference, including advancements in endpoint security, cloud protection, and artificial intelligence (AI)-driven solutions like Charlotte AI. The company also announced the acquisition of Adaptive Shield, enhancing its capabilities in SaaS security, and launched Falcon Flex, a subscription model aimed at consolidating cybersecurity solutions for enterprises. The firm has forged strategic partnerships with industry players like Fortinet and expanded its cybersecurity accelerator programme with AWS and Nvidia to drive innovation.
Read more: Financial Conduct Authority tells banks to guard against Crowdstrike-like shutdown
