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CrowdStrike lifts forecast for annual revenue, profit on resilient cybersecurity demand

Published 08/30/2023, 05:27 PM
Updated 08/30/2023, 05:34 PM
© Reuters.
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(Reuters) - CrowdStrike Holdings (NASDAQ:CRWD) on Wednesday raised its full-year outlook and forecast third-quarter revenue and profit above market estimates, as more clients turn to its integrated cybersecurity offerings to combat rising digital threats.

Rising cyber crime, privacy concerns and high-profile hacks have fueled demand for cybersecurity products as businesses and governments grow their digital presence.

The biggest winners have been the companies that serve as a one-stop shop for cybersecurity solutions, helping clients be more efficient and improve risk management.

CrowdStrike raised its annual revenue outlook to a range of $3.03 billion to $3.04 billion, up from its earlier forecast of between $3 billion and $3.04 billion.

The cybersecurity firm also raised its outlook for annual adjusted earnings to $2.80 to $2.84 per share, from its prior view of $2.32 to $2.43 per share.

The Austin, Texas-based company forecast current-quarter revenue between $775.4 million and $778.0 million, compared with analysts' average estimate of $774 million, according to Refinitiv data.

It expects adjusted profit per share for the Aug-October period at 74 cents, above estimates of 61 cents per share.

Global average weekly cyber attacks rose 8% in the second quarter of 2023, according to Check Point Research, with the average number of attacks per organization per week hitting a two-year high.

Rival Palo Alto Networks (NASDAQ:PANW) forecast annual billings above market estimates earlier in August, as demand for its integrated cybersecurity offerings surged.

CrowdStrike posted revenue of $731.6 million for the second quarter ended July 31, beating estimates of $724.1 million. Its adjusted profit per share came in at 74 cents, also ahead of estimates of 56 cents per share.

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