CrowdStrike’s mixed earnings report sends stock lower as company seeks to put last year’s outage in the rearview

It was nearly a year ago that CrowdStrike reached household name status following a software glitch that caused possibly the largest IT outage ever. The cybersecurity firm’s first-quarter earnings report, posted Tuesday, highlights its continued efforts to move past it.

CrowdStrike posted earnings per share of $0.73, beating analysts’ estimates of $0.66 per share. Its revenue rose 20% year over year to $1.1 billion, a hair shy of the Wall Street consensus. The company posted annual recurring revenue of $4.44 billion, up 22%.

For its second quarter, CrowdStrike expects sales of between $1.14 billion and $1.15 billion and adjusted earnings of $0.82 to $0.84. That’s compared to analysts’ expectations for $1.16 billion in revenue and earnings of $0.81, according to FactSet.

Investors were nonplussed, sending CrowdStrike shares, which have soared lately, down more than 6% after the report.

Last year, CrowdStrike reported $60 million in costs related to its outage. In its latest earnings, the company reported another $39.7 million in outage costs. CrowdStrike has projected millions of dollars more tied to discounts the company has offered customers as a mea culpa.

Despite costs still lingering, CrowdStrike shares have recovered, breaking record closing highs three times in the past week before Tuesday’s drop after the bell. The stock has more than doubled off the lows it fell to last July shortly after the outage.