June 4- CrowdStrike (CRWD, Financial) stock slid about 6% in Wednesday trade after the cybersecurity firm set revenue guidance below Wall Street expectations.
The company projects fiscal Q2 revenue of $1.14 billion to $1.15 billion, shy of the $1.16 billion consensus, and sees adjusted earnings of $0.82 to $0.84 per share, roughly in line with forecasts. Management said the outlook still reflects headwinds from incentives rolled out after a July 2024 outage that grounded flights and delayed hospital procedures.
Chief Financial Officer Burt Podbere said those “customer commitment” packages trimmed revenue by about $11 million last quarter and will likely shave a further $10 million to $15 million through year-end.
CrowdStrike also disclosed that the U.S. Justice Department and Securities and Exchange Commission have requested information on revenue recognition practices, annualized contract figures, and matters tied to the outage. Evercore ISI downgraded the shares to “In Line,” citing a “full valuation” and lingering one-off issues.
For fiscal Q1, CrowdStrike posted adjusted earnings of $0.73 a share, topping estimates, while revenue grew roughly 20% year on year. The company recorded a net loss of $110.2 million and unveiled a $1 billion share-repurchase program.
