CrowdStrike reports higher operating expenses as AI investments gain pace


CrowdStrike logo is seen in this illustration taken July 29, 2024. REUTERS/Dado Ruvic/Illustration

June 3 (Reuters) - CrowdStrike ⁠reported a 15% jump in its first-quarter ⁠operating expenses on Wednesday, as the cybersecurity company ‌ramps up investments in AI and product development.

Shares of the company dropped 9% in extended trading.

Here are some details:

• CrowdStrike ​expects 2027 revenue to be ⁠between $5.91 billion and $5.96 billion, ⁠compared with its prior expectations of $5.87 billion to $5.93 billion.

• ⁠Total ‌operating expenses for the first quarter came in at $1.07 billion, compared with $934.3 million ⁠a year earlier.

• The company's platform approach, ​spanning endpoint ‌protection, cloud security and identity, is designed to ⁠make customers ​more reliant on its ecosystem, driving both stickiness and cross-selling opportunities.

• In March, CrowdStrike launched Falcon Data ⁠Security, a unified platform designed to ​discover, classify and protect sensitive data and AI workflows in real time.

• It also launched the Charlotte ⁠AI AgentWorks Ecosystem, a no-code development platform created with AWS, Nvidia, and OpenAI to build and scale custom security agents on the Falcon platform.

• CrowdStrike ​also announced a four-for-one stock ⁠split.

• Total first-quarter revenue stood at $1.39 billion, compared with ​analysts' average estimate of $1.36 billion, ‌according to data compiled by ​LSEG.

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shreya Biswas and Shilpi Majumdar)

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