The problems for Crowdstrike are not over.

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The problems for Crowdstrike are not over. The effect of the incident won’t be felt on their balance sheet for another 3 – 4 quarters. Until contract renewals take place; regulators state their position; insurers conclude their processes; Crowdstrike executives testify in front of the U.S. House of Representatives subcommittee on the 24th September, and the lawyers have settled. Crowdstrike isn’t out the woods.

Crowdstrike cashflow was unlikely to be affected following the incident at the end of a quarter, with reoccurring revenues being added to the P&L. As with Snowflake, there’s along road ahead and market sentiment changes quickly. Its share price was on the slide in the week of the incident and tanked down $100 over a 2 week period following, and has only recovered $60. The quarterly earning statement only pushed its share price up around $13 to $277.

There’s along way to go and many hurdles ahead.

@Thaddeus Dziekanowski Brian D. McCarthy

Veritas GRC CrowdStrike

#cybersecurity #cyberriskmanagement

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