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The management is revising the company's financial forecasts for the coming year.
CrowdStrike faced financial difficulties after a failed update of its Falcon Sensor, which led to a global failure in IT networks. This event, according to the company's management, will have a negative impact on revenues until mid-2025.
Because of the incident, the processes of concluding new contracts slowed down, the duration of sales increased, and customers began to check the company's offers more carefully. As a result, CrowdStrike is forced to offer discounts in order to retain current customers and attract new ones. Such measures could lead to a $60 million decrease in the company's annual revenue.
Despite the temporary financial losses, CrowdStrike CEO George Kurtz is confident in customer loyalty. He noted that many of them continue to trust the company, despite the failure, and intend to continue cooperation. According to Kurz, customers appreciate CrowdStrike's integrated solutions and are reluctant to switch to other vendors to avoid using many different products, which can create vulnerabilities.
The company's financial performance in the last quarter still showed growth, despite the consequences of the failure. CrowdStrike recorded nearly $47 million in net income on revenue of $964 million. Net profit increased by 451% compared to the same period last year, and revenue increased by 32%.
However, due to the incident, the company was forced to revise its forecasts for the remainder of fiscal 2025. The forecast for revenue was reduced by 2.2-2.7%, and for net profit - by 7.8-9.3%.
CrowdStrike management admits that this incident was one of the most complex in the company's history. Kurz assured that everything possible is being done to prevent such mistakes from happening again in the future.
Source
CrowdStrike faced financial difficulties after a failed update of its Falcon Sensor, which led to a global failure in IT networks. This event, according to the company's management, will have a negative impact on revenues until mid-2025.
Because of the incident, the processes of concluding new contracts slowed down, the duration of sales increased, and customers began to check the company's offers more carefully. As a result, CrowdStrike is forced to offer discounts in order to retain current customers and attract new ones. Such measures could lead to a $60 million decrease in the company's annual revenue.
Despite the temporary financial losses, CrowdStrike CEO George Kurtz is confident in customer loyalty. He noted that many of them continue to trust the company, despite the failure, and intend to continue cooperation. According to Kurz, customers appreciate CrowdStrike's integrated solutions and are reluctant to switch to other vendors to avoid using many different products, which can create vulnerabilities.
The company's financial performance in the last quarter still showed growth, despite the consequences of the failure. CrowdStrike recorded nearly $47 million in net income on revenue of $964 million. Net profit increased by 451% compared to the same period last year, and revenue increased by 32%.
However, due to the incident, the company was forced to revise its forecasts for the remainder of fiscal 2025. The forecast for revenue was reduced by 2.2-2.7%, and for net profit - by 7.8-9.3%.
CrowdStrike management admits that this incident was one of the most complex in the company's history. Kurz assured that everything possible is being done to prevent such mistakes from happening again in the future.
Source
