CrowdStrike logo is seen in this illustration taken July 29, 2024.
Dado Ruvic | Reuters
CrowdStrike shares popped more than 12%, a day after the cybersecurity firm issued better-than-expected long-term guidance at its investor day.
The company on Wednesday said it expects net new annual recurring revenues to grow at least 20% in 2027, ahead of analysts’ expectations. CrowdStrike plans for ARR to hit $10 billion by 2031, and then double to $20 billion by 2036.
Earlier this week, the firm said it was buying AI security platform Pangea and announced a partnership with Salesforce.
“CrowdStrike is by far the most advanced security platform in the industry, and the plethora of AI-based solutions announced today will further separate CrowdStrike from the competition,” wrote Wells Fargo analyst Andrew Nowinski in a note following the event.
Some Wall Street firms also boosted their price targets.
Cybersecurity has taken center stage this year as businesses beef up security in the age of artificial intelligence. Many companies have harnessed AI tools to strengthen their offering as threats rise in sophistication.
This year’s biggest tech deals have included Google’s $32 billion acquisition of Israeli cybersecurity startup Wiz and Palo Alto Networks’ $25 billion CyberArk deal.
Cybersecurity firm Netskope hit the public market Thursday, while Thoma Bravo-backed SailPoint debuted earlier this year.
During its recent earnings report, CrowdStrike’s revenue guidance for the third quarter fell short of analysts’ expectations.
