Key insights
- CrowdStrike's Q1 operating expenses rose 15% due to increased AI and product development investments, leading to an 8% drop in after-hours trading. While the company raised its 2027 revenue and adjusted profit outlooks, the significant increase in expenses and subsequent stock reaction suggest potential near-term headwinds for the cybersecurity sector and growth stocks reliant on heavy R&D spending. This could signal a cautious investor sentiment towards companies prioritizing long-term investment over immediate profitability.
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 fell 8% in extended trading.
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.
First-quarter total operating expenses came in at $1.07 billion, compared with $934.3 million a year earlier.
CrowdStrike expects 2027 adjusted profit to be between $4.88 and $4.96 per share, versus its prior projection of $4.78 to $4.90.