CrowdStrike, the cybersecurity firm responsible for a major global IT outage on July 19, recently shared the impact of the incident on its business.
During an earnings call, the Texas-based company revealed that the outage, caused by a faulty software update affecting 8.5 million Windows devices used by thousands of its business customers, has led many of them to hesitate in continuing with CrowdStrike’s services, as reported by Axios.
Potential and existing clients are now taking more time to finalize deals with the cybersecurity firm, with decisions being escalated to higher levels within organizations, as mentioned by CrowdStrike CFO Burt Podbere.
The company expects to incur a $60 million revenue loss in the second half of the year, partially due to offering discounts and incentives to customers.
The aftermath of the outage, considered the worst of its kind, caused widespread disruption across various industries globally, tarnishing CrowdStrike’s reputation and sparking backlash from a displeased Delta Air Lines, which claims substantial financial losses due to flight cancellations.
In response to potential litigation, Podbere noted it was premature to gauge the impact, citing liability limits in customer agreements and insurance coverage as protective measures.
CrowdStrike faced criticism for only offering Uber Eats vouchers worth $10 to affected partner firms and received the “Most Epic Fail” award at the Pwnie Awards, which was accepted by company president Michael Sentonas in person.
In its latest financial report, CrowdStrike reported a revenue of $963.9 million for the quarter ending July 31, showing growth compared to the previous year despite the incident occurring late in the quarter with minimal impact on results.
