👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

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.
CRWD
-

(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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.