How to value Crowdstrike?

Nick2666
2022-03-11

Network cloud security company$CrowdStrike Holdings, Inc.(CRWD)$After yesterday's increase of 8%, it rose by 12% before the financial report was released. It is really necessary to introduce this excellent target to tiger friends.

In$CrowdStrike Holdings, Inc.(CRWD)$There are many labels on the body, such as technology stocks, Internet, network security stocks, cloud, SAAS, which are hot concepts in the stock market. CrowdStrike can accept them all according to the order. If the recent conflict between Russia and Ukraine can be regarded as a concept, CrowdStrike will eat it. I have written an article before,Russia-Ukraine conflictIt happens to be an inducement for the recent outbreak of the concept of network security. The logic is:

Russia is widely sanctioned by the Western world, which may cause them to retaliate.

Don't think this is far away. It is reported that a few days before the Russian-Ukrainian conflict, a malicious software called Wiper was found in the Ukrainian government system.

But Americans or companies know very well that, as George Kurtz, CEO of CrowdStrike, is far-sighted in CNBC interview, most security infrastructures in the United States are not up to standard:

Governments and businesses "must be prepared" because the network will play a key role in any modern war. Part of the cyber challenge is that there is really no specification. Unfortunately, 85% of the infrastructure is owned by private companies, and when we consider critical infrastructure, it is not always at the level we want from a cybersecurity perspective.

In addition to bringing updates on the Russian-Ukrainian conflict, I hope Tiger friends can understand it from a relatively more fundamental perspectiveThe Excellence of CrowdStrikeA brief summary is as follows:

1. First-class technology and innovation platform
CrowdStrike's network security architecture is innovative and very effective in large-scale endpoint protection.
2. The demand of the overall network security industry is growing
As cybercrime increases and threats become more complex, the need for cybersecurity will only increase.
3. Strong balance sheet and improved operating cash flow
CrowdStrike has excellent profit margins, a strong balance sheet and ample liquidity.

After all the above, I will bring you this timeUpdate of financial report data:

Crowdstrike's earnings numbers are impressive. Total revenue increased by 63% year-on-year, and subscription revenue increased by 66%. Annual recurring revenue was $1.73 billion, up 65% from 12 months ago, of which $217 million came from the last three months. Adjusted earnings per share were $0.30, more than double what Crowdstrike reported in the fourth quarter of the previous fiscal year.

Crowdstrike's metrics show growth in its business. Between October 2021 and January 2022, the company's number of customers increased by more than 1,600 to 16,325. Nearly 70% of customers have adopted at least four modules on Crowdstrike's Falcon platform, and the company has continued to enhance these modules during this period.

Most importantly, Crowdstrike expects strong growth in fiscal year 2023. The company set its revenue forecast at between $2.13 billion and $2.16 billion, which is about 48% higher than the final figure in fiscal year 2022.

Adjusted full-year earnings per share of $1.03 to $1.13 also made investors optimistic about the future. In view of the growing demand for network security services, Crowdstrike takes advantage of the wind era.

Finally

CrowdStrike's cloud security momentum benefits from its architectureAnd the leading edge of artificial intelligence, as well as the expanding product suite. The company is gaining a share from traditional peers such as Symantec and McAfee. With the network security expenditure and workload migration to the public cloud, it will support the company's growth of more than 40% in the next two years, and there is still room for sustained high growth in sales. Gross profit margin and operating profit margin are subject to company-wide deployment of major customers, and additional security information and incident management (SIEM) and vulnerability assessment will support sales.

Recently, CrowdStrike's valuation has been severely hit by the rotation of growth stocks and SaaS stocks. However, its fundamentals remain strong. Given the long-term tailwinds supporting cyber security, CrowdStrike may be a key beneficiary for the government and companies to review the adequacy of their current cyber security systems.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • HilaryWilde
    2022-03-11
    HilaryWilde
    I agree with the opinion in the article that the government should strengthen the control of network facilities.
  • QArmieeQ
    2022-03-13
    QArmieeQ
    We all should understand by now, cyber security is less impacted by market volatility.
  • VDIAMOND
    2022-03-13
    VDIAMOND
    Good strong stocks... However March & April might have further painful correction...
  • HilaryWilde
    2022-03-11
    HilaryWilde
    Is now a good time to buy this stock? I was moved by what you said.
  • MR_Wu
    2022-03-11
    MR_Wu
    There is no doubt that network security is a very important topic in the Internet age.
  • Ericdao
    2022-03-14
    Ericdao
    Short term look good. It needs to pull out from the downtrend channel to turn bullish
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