CrowdStrike slips despite upbeat quarterly revenue forecast

• StockStory Top Pick CRWD +2.46%
• ETOR -0.36%

By Kritika Lamba

Dec 2 (Reuters) - CrowdStrike (CRWD) forecast fourth-quarter revenue above analysts' estimates on Tuesday, as the cybersecurity firm ​benefits from growing adoption of AI across its ‌product suite.

Shares of the company fell 2% in premarket trading on Wednesday.

The company has ‌been rolling out AI-driven features on its Falcon platform, including new detection and triage tools launched in September, as part of a broader push to consolidate security operations and attract customers ⁠seeking integrated solutions.

"This isn't ‌a one-off; it has lifted its full-year outlook to match the growing momentum in its tools...It's ‍not a world-beating upgrade.. but it shows that CrowdStrike is taking the AI opportunity with both hands, growing margins and scaling efficiently," ​said Farhan Badami, Market Analyst at eToro.

The demand for cybersecurity ‌continues to be robust, as businesses ramp up investments in AI-powered security systems to counter a surge in sophisticated digital threats, benefiting companies such as CrowdStrike.

The upbeat outlook marks a turnaround for the Texas-based firm, which faced reputational damage last ⁠year after a faulty software update ​triggered widespread outages on Windows systems, ​and disrupted hospitals, banks and airports.

CrowdStrike sees fourth-quarter revenue between $1.29 billion and $1.30 billion, compared with analysts' estimates ‍of $1.22 billion according ⁠to data compiled by LSEG.

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The company also increased its full-year revenue outlook to between $4.80 billion and $4.81 billion.

For the ⁠third quarter, the company posted revenue growth of 22% to $1.23 billion, compared ‌with estimates of $1.22 billion.

(Reporting by Kritika Lamba in Bengaluru; ‌Editing by Krishna Chandra Eluri)