CrowdStrike Swings to a Loss With Costs Tied to Massive Outage, Despite Revenue Gains | Global News Avenue

mass strike (Add, delete, modify and checkAlthough revenue growth beat analysts’ expectations, it unexpectedly posted a loss in the third quarter due to higher expenses.

The cybersecurity giant reported third-quarter revenue of $1.01 billion, up 29% year over year and above the analyst consensus compiled by Visible Alpha. However, the company reported a loss of $16.82 million, or 7 cents a share, compared with a profit of $26.67 million, or 11 cents a share, a year earlier, which was lower than expected due to soaring costs.

CrowdStrike is still dealing with the impact of July’s massive power outages

The results come as CrowdStrike continues to deal with Software update error July affected Microsoft (Microsoft Corporation) Windows-based systems spread across the world and grounded thousands of flights.

Delta Air Lines (Dar) sue the company Last month, an estimated incident occurred $500 million spentas well as loss of future income and damage to reputation. The complaint alleges CrowdStrike breach of contract, gross negligence, intentional misrepresentation or fraud by omission.

CrowdStrike says this is irresponsible Delta’s handling of the incident and the airline’s largely ignoring its requests for assistance.

Burt Podbere, CrowdStrike’s chief financial officer, said the company’s third-quarter results showed “strong performance and sequential pipeline volume growth despite the expected adverse impact of the July 19 incident.”

The company raised its full-year revenue guidance to $3.92 billion to $3.93 billion from $3.89 billion to $3.9 billion, above Wall Street expectations.

CrowdStrike’s shares fell 2% in after-hours trading on Tuesday following the news. The stock is up more than 42% from the beginning of the year to Tuesday’s close.