CrowdStrike logo is seen in this illustration taken July 29, 2024. REUTERS/Dado Ruvic/Illustration
Dec 2 (Reuters) - CrowdStrike 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 rose about 1% in extended trading.
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.
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)
