CrowdStrike reports first full quarter results after causing biggest worldwide tech disruption in history

Cybersecurity firm CrowdStrike claims to have successfully weathered the storm caused by its faulty Falcon software update in July, reporting strong customer retention rates in its Q3 fiscal 2025 earnings call.
Crowdstrike update pushed for in Microsoft devices on July 19 put caused the largest global IT outages in history. Several businesses around the world came to standstill for over 48 hours. The disruption put CrowdStrike’s reputation on the line.
Despite the global IT outage, which tarnished the company's reputation, CEO George Kurtz emphasized that customers remained loyal, with a gross retention rate of over 97%.
While the incident led to a net loss of $16.8 million, CrowdStrike's revenue still surged 29% year-over-year to $1 billion. The company attributed the loss to expenses related to the outage and customer commitment packages designed to mitigate its impact. CrowdStrike’s annual recurring revenue was up 27% year over year, but down from 35% a year prior. The company reiterated it anticipates ARR to increase in the second half of next year.
Looking ahead, CrowdStrike remains optimistic about its future growth, particularly in managed security services. The company is focused on rebuilding trust and capitalizing on its industry-leading technology to drive long-term success.