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$CRWD: New Era of Cyber Security
CrowdStrike Holdings, Inc. ($CRWD) is a leading SECaaS company that provides endpoint protection (EPP), SecOps, and threat intelligence.
It leverages network effects of crowdsourced data to detect threats and stop breaches.
Time for a thread
CrowdStrike Holdings, Inc. ($CRWD) is a leading SECaaS company that provides endpoint protection (EPP), SecOps, and threat intelligence.
It leverages network effects of crowdsourced data to detect threats and stop breaches.
Time for a thread
1/ The Basics
Capabilities:
- Endpoint protection
- Threat intelligence
- Security & vulnerability mgmt
- IT service mgmt
- Mgd security services
Leader because:
- Cloud-based
- AI/ML threat detection
- Internal expert analysis
- Other SECaaS & analytics integration (sticky!)
Capabilities:
- Endpoint protection
- Threat intelligence
- Security & vulnerability mgmt
- IT service mgmt
- Mgd security services
Leader because:
- Cloud-based
- AI/ML threat detection
- Internal expert analysis
- Other SECaaS & analytics integration (sticky!)
2/ Market Leader
IDC reported that CRWD doubled its market share after growing ~100% from 2018 to 2019.
CEO: "The competitive environment has evolved to our favor as market share of the incumbents continues to erode."
$CRWD will continue to displace legacy on-prem providers.
IDC reported that CRWD doubled its market share after growing ~100% from 2018 to 2019.
CEO: "The competitive environment has evolved to our favor as market share of the incumbents continues to erode."
$CRWD will continue to displace legacy on-prem providers.
3/ Cyber Security Paradigm
My $OKTA thread: why I'm bullish CS
On-prem solutions only analyze data from that network
Cloud-enabled SECaaS, pioneered by $CRWD, gathers data from all customers
Applying AI/ML to comprehensive data set = better security! https://twitter.com/SeifelCapital/status/1287784272242278401?s=20
My $OKTA thread: why I'm bullish CS
On-prem solutions only analyze data from that network
Cloud-enabled SECaaS, pioneered by $CRWD, gathers data from all customers
Applying AI/ML to comprehensive data set = better security! https://twitter.com/SeifelCapital/status/1287784272242278401?s=20
4/ Insane Growth (YoY)
Total Rev: $178MM (+85%)
Subscription Rev: $162MM (+89%, 91% of Total Rev)
ARR: $686MM (+88%)
Net New ARR: $85.7MM (+65%)
Adj. GM: 75% (+500 Bps)
Free CF: $87MM (vs. -$16MM), 49% Margin
Subs Customers: 6,261 (+105%)
NER > 120%
Rule of 40: 64%
Wow
Total Rev: $178MM (+85%)
Subscription Rev: $162MM (+89%, 91% of Total Rev)
ARR: $686MM (+88%)
Net New ARR: $85.7MM (+65%)
Adj. GM: 75% (+500 Bps)
Free CF: $87MM (vs. -$16MM), 49% Margin
Subs Customers: 6,261 (+105%)
NER > 120%
Rule of 40: 64%
Wow
5/ Consistency
QoQ performance has been just as impressive (CY 1Q19 – 1Q20)
Revenue Growth: 94%, 89%, 89%, 89%
Customer Growth: 23%, 30%, 19%, 15%
Adj. EBIT Margin: -19%, -13%, -4.4%, 0.7%
FCF Margin: -27%, 5.6%, 33.3%, 48.8%
Raised 2Q20 Guidance - Total Rev: $187MM (+74%)
QoQ performance has been just as impressive (CY 1Q19 – 1Q20)
Revenue Growth: 94%, 89%, 89%, 89%
Customer Growth: 23%, 30%, 19%, 15%
Adj. EBIT Margin: -19%, -13%, -4.4%, 0.7%
FCF Margin: -27%, 5.6%, 33.3%, 48.8%
Raised 2Q20 Guidance - Total Rev: $187MM (+74%)
6/ Customer Adoption
Existing Customer Base: With 4+ cloud modules increased to 55%; with 5+ increased to over 35%.
*More modules = higher gross margins
New Customers: Landing bigger deals with more modules – # of new customers starting with > $1MM ARR more than doubled YoY
Existing Customer Base: With 4+ cloud modules increased to 55%; with 5+ increased to over 35%.
*More modules = higher gross margins
New Customers: Landing bigger deals with more modules – # of new customers starting with > $1MM ARR more than doubled YoY
7/ Coronavirus TAILwind
$CRWD observed eCrime activity +330% vs. 2019
WFH: Customers need to secure all endpoints - 13% increase in initial appointments since pandemic.
Cloud offering, single (lightweight) agent gives $CRWD advantage over on-prem & multi agent competitors.
$CRWD observed eCrime activity +330% vs. 2019
WFH: Customers need to secure all endpoints - 13% increase in initial appointments since pandemic.
Cloud offering, single (lightweight) agent gives $CRWD advantage over on-prem & multi agent competitors.
8/ Management
Founder-led
Innovators: EDR for mobile, Falcon platform
Two initiatives to help customers during COVID:
- Customers can surge # of devices FREE for 60 days (ended in Q2, more on this)
- Customers can install Falcon Prevent on employees’ home systems
Founder-led
Innovators: EDR for mobile, Falcon platform
Two initiatives to help customers during COVID:
- Customers can surge # of devices FREE for 60 days (ended in Q2, more on this
)- Customers can install Falcon Prevent on employees’ home systems
9/ Go-to-Market Strategy
Low friction land & expand:
- Customers can start with any # of modules (11 total)
- More modules can be activated real time on same agent
- Enabled free trial offering of Falcon Prevent on AWS Marketplace
- Low friction: Navigates outside of containers
Low friction land & expand:
- Customers can start with any # of modules (11 total)
- More modules can be activated real time on same agent
- Enabled free trial offering of Falcon Prevent on AWS Marketplace
- Low friction: Navigates outside of containers
