CrowdStrike Maintains 97% Customer Loyalty Despite Major IT Outage
Cybersecurity Dive
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Contributed by: Kate Gamble
Summary
CrowdStrike managed to retain a strong customer base despite a major global IT outage on July 19, 2024, which stemmed from a problematic software update to its Falcon platform. During a recent earnings call, CEO George Kurtz noted a gross retention rate exceeding 97% for the third quarter of fiscal 2025, highlighting customer loyalty amidst the crisis. The outage led to $33.9 million in expenses and a net loss of $16.8 million for the quarter, yet the company also reported a 29% year-over-year revenue increase, totaling $1 billion. CFO Burt Podbere acknowledged the financial repercussions but expressed hope for recovery through internal changes. In response to the incident, CrowdStrike launched "customer commitment packages" to enhance relationships with clients, although some churn was observed in its managed security services sector.
