(Reuters) -CrowdStrike Holdings Inc forecast fiscal year 2024 revenue above market estimates on Tuesday, the latest sign that spending on cybersecurity products was holding up in a turbulent economy.
Shares of the Austin, Texas-based company rose 7.5% in trading after the bell.
While tech budgets have shrunk this year in the face of rising interest rates and decades-high inflation, a series of high-profile hacks and the rising digital presence of companies and governments has ensured demand for cybersecurity services.
Rival Palo Alto Networks Inc raised its annual profit forecast last month and beat estimates for quarterly earnings, saying it expects cybersecurity demand to be resilient.
For the fourth quarter ended Jan. 31, CrowdStrike’s revenue rose 48% to $637.4 million compared with a year earlier. Analysts on average had expected $624.9 million.
CrowdStrike’s net loss for the fourth quarter widened to $47.5 million from $42 million a year earlier.
The company said it expects fiscal year 2024 revenue between $2.96 billion and $3.02 billion, compared with analysts’ estimates of $2.96 billion, according to Refinitiv data.
(Reporting by Vansh Agarwal in Bengaluru; Editing by Krishna Chandra Eluri)
