Cybersecurity firms CrowdStrike and Okta beat earnings forecasts but face challenges [Video]

Shares in both CrowdStrike Holdings Inc. and Okta Inc. fell in late trading today despite the cybersecurity companies reporting solid quarterly figures.

CrowdStrike revised its outlook downward following a quarter that saw the company shrouded in controversy following an update to its Falcon cybersecurity product that brought down systems across much of the world.

For its second quarter, CrowdStrike reported adjusted earnings per share of $1.04, up from 74 cents the year prior, on revenue of $963.9 million, up 32% year-over-year. Analysts had expected to see adjusted earnings per share of 97 cents on revenue of $958 million.

The company ended the quarter with annual recurring revenue of $3.86 billion, up 32% year-over. Cash flow from operations in the quarter came in at $326.6 million, up from $244.8 million in the second quarter of fiscal 2024. CrowdStrike ended the quarter with $4.04 billion billion in cash and cash equivalents on hand.

Though CrowdStrike did highlight some achievements through …