Despite these positive trends, Truist Securities anticipates that the near-term effects will include temporarily subdued upsell dollar values and a higher than usual level of contraction, due to longer subscription terms. Nevertheless, the analyst's outlook remains optimistic about CrowdStrike's ability to navigate post-outage market conditions and continue its growth trajectory. For investors seeking deeper insights, InvestingPro offers a comprehensive research report on CrowdStrike, part of its coverage of 1,400+ US equities, providing essential metrics and expert analysis for informed investment decisions.
For investors seeking deeper insights, InvestingPro offers a comprehensive research report on CrowdStrike, part of its coverage of 1,400+ US equities, providing essential metrics and expert analysis for informed investment decisions. The adjustment follows CrowdStrike's reported recovery from the impacts of the global IT outage that occurred on July 19th, which now appears to be largely behind the company.
Despite these positive trends, Truist Securities anticipates that the near-term effects will include temporarily subdued upsell dollar values and a higher than usual level of contraction, due to longer subscription terms. Nevertheless, the analyst's outlook remains optimistic about CrowdStrike's ability to navigate post-outage market conditions and continue its growth trajectory.
For investors seeking deeper insights, InvestingPro offers a comprehensive research report on CrowdStrike, part of its coverage of 1,400+ US equities, providing essential metrics and expert analysis for informed investment decisions.
According to Truist Securities, approximately half of the $60 million in deals that were delayed from the second quarter due to the IT incident were successfully closed in the third quarter. This development suggests that the repercussions from the outage have been relatively well-contained.
The company's management has expressed confidence, indicating that their guidance has incorporated sufficient allowances for potential challenges following the outage. These challenges include delayed outbound prospecting, which has since fully resumed and is returning to normal response levels, extended sales cycles, and heightened deal scrutiny. Additionally, CrowdStrike has introduced customer commitment packages, designed to incentivize longer-term commitments to the Falcon platform.
Despite these positive trends, Truist Securities anticipates that the near-term effects will include temporarily subdued upsell dollar values and a higher than usual level of contraction, due to longer subscription terms. Nevertheless, the analyst's outlook remains optimistic about CrowdStrike's ability to navigate post-outage market conditions and continue its growth trajectory.
In other recent news, cybersecurity firm CrowdStrike has been making significant strides. The company has achieved a sales milestone, becoming the fastest pure play SaaS cybersecurity vendor to surpass $1 billion in total sales with SHI International. Analysts from Mizuho (NYSE:MFG) Securities, KeyBanc, and TD Cowen have expressed positive sentiments, with Mizuho raising the firm's price target to $385, KeyBanc reiterating an Overweight rating with a $395 target, and TD Cowen reaffirming a Buy rating with a $380 target.
CrowdStrike has also seen changes in its stock structure, converting all outstanding Class B shares into Class A shares, which has altered the voting power landscape of CrowdStrike's shareholders. RBC Capital Markets analyst Matthew Hedberg also increased the price target on CrowdStrike Holdings (NASDAQ:CRWD) shares to $420 from the previous $365, while maintaining an Outperform rating on the cybersecurity firm's stock.
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