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CrowdStrike reports higher operating expenses as AI investments gain pace

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June 3 : CrowdStrike reported a 15 per cent 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 per cent 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.

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• 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.

• The company has capitalized on the rise of AI in cybersecurity, an area analysts see as a major long-term tailwind.

• Its 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.

• The company 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.

Source: Reuters

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