06:41 AM EDT, 08/29/2024 (MT Newswires) -- CrowdStrike ( CRWD ) shares fell early Thursday as the cybersecurity company cut its fiscal 2025 outlook amid the impact of the July global tech outage, while its second-quarter results topped Wall Street's estimates.

The firm now expects per-share adjusted earnings to be in a range of $3.61 to $3.65 for the ongoing year, it said late Wednesday, down from its previous projections of $3.93 to $4.03. Revenue is pegged at $3.89 billion to $3.9 billion versus the prior guidance of $3.98 billion to $4.01 billion. The consensus on Capital IQ is for normalized EPS of $3.66 and revenue of $3.91 billion.

The July 19 outage stemmed from an update CrowdStrike ( CRWD ) deployed for its Falcon sensors on Microsoft (MSFT) Windows systems. The company estimates the incident to have a $30 million impact on subscription revenue in each of the remaining quarters of the fiscal year, as well as a high-single-digit million hit to professional services revenue in the second half. The stock was down 2.1% in premarket activity.

"Customer retention remains remarkably strong, and we do not expect this to meaningfully change in the foreseeable future," Chief Financial Officer Burt Podbere said on an earnings call, according to a Capital IQ transcript. "While we will shift some planned investment from sales and marketing to further (research and development), quality assurance and customer support, we are continuing to invest in our (fiscal 2025) plan for the remainder of the year at this point in time."

For the third quarter, CrowdStrike ( CRWD ) anticipates adjusted EPS to come in between $0.80 and $0.81 and revenue to be at $979.2 million to $984.7 million. The Street is looking for normalized EPS of $0.81 and revenue of $984.1 million.

"We expect to see extended sales cycles for both new and existing customers with additional scrutiny requiring higher levels of approval at the CEO and in some cases, board of directors level," Podbere said on the call. "In the short term, we expect our commitment packages will result in temporarily muted upsell dollar values and temporarily higher-than-typical levels of contraction due to elongated subscription terms."

The firm reported adjusted earnings of $1.04 a share for the quarter ended July 31, up from $0.74 the year before, ahead of the Street's view for $0.97. Revenue climbed 32% year over year to $963.9 million, surpassing analysts' $958.3 million estimate. Subscription revenue jumped 33% to $918.3 million, while professional services rose to $45.6 million from $41.7 million last year.

Annual recurring revenue, or ARR, advanced 32% to $3.86 billion, of which $217.6 million was net new ARR added in the second quarter, according to the company. "The July 19 incident had a significant impact on the last two weeks of the quarter as we rapidly mobilized teams to assist customers, but we continue to close deals, including a nine figure in deal value expansion," Podbere told analysts.

Price: 257.85, Change: -6.35, Percent Change: -2.40