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The expanding $45B TAM of Cybersecurity will power the next stage of growth for $CRWD
Price: $206.6
Market Cap: $46B
52 WKL – 52WKH: $62.77 - $251.28
Shares outstanding: 223M
Price: $206.6
Market Cap: $46B
52 WKL – 52WKH: $62.77 - $251.28
Shares outstanding: 223M
The global Cybersecurity market size will be $200B by 2025, growing at 10.5% CAGR
$CRWD initially operated within the $9B TAM of workload security but with acquisitions (Humio, Preempt Security) and new products, has raised the TAM opportunity to $44B
$CRWD has massive opportunity to get customers to spend more on security given the increasing number of threats and business impact costs
$CRWD has developed a differentiated cloud-native security platform that leverages its lightweight intelligent agent and Threat Graph database in 10 modules
$CRWD provide cloud-based security instead of inflexible, complex agent-based systems, protecting users, systems, devices, cloud platforms and applications
$CRWD top 3 modules are Falcon Prevent, Falcon Insight, and Falcon OverWatch. Falcon Discover and Falcon Device Control are growing fast
$CRWD Cloud Workload Protection, Horizon, and Spotlight as growing quickly because of SolarWinds and $MSFT Exchange attacks
$CRWD is a leader in the Endpoint Protection Platform space, widening its lead over legacy providers such as $MCFE and $MSFT
Customers chose CrowdStrike for their Endpoint Protection vendor - well above other vendors such as $FEYE, $VMW Carbon Black, Symantec and $MSFT
$CRWD has partnerships with $AMZN AWS and $GOOG GCP that allow its agents to be automatically deployed as new workloads are spun up and billed on a metered fashion rather than per agent
$CRWD: This has resulted in growth - New customers nearly doubled to 9,896 and over 58% of Fortune 100 are customers
$CRWD entered Q1 with a record pipeline implying short deal process time, larger deal sizes, and faster time to further upsell post the initial transactions
$CRWD has rapid ARR Growth of 75% CAGR over the last few years and is growing faster at scale
$CRWD customers are buying more: 63% with 4+ Modules, 47% with 5+ Modules, 24% with 6+ Modules resulting in 125% DBNER
$CRWD Gross Margins are at a record 77.3%, on very strong subscription margins. Operating margins expanded even more to 13.0%
$CRWD updated target model raised OM% Expectations by 200bps and Should be Attainable by 25 with $3B+ in ARR
$CRWD founded by George Kurtz (CEO), Dmitri Alperovitch & Gregg Martson in 2011 in Sunnyvale to provide cloud-based end-point security for the new emerging threats to the enterprise
$CRWD went IPO on June 15th, 2019, raising $610M at $7B valuation. Shares went up 70% on IPO to over $63.5 valuing it at over $11B
$CRWD is Trading Approximately In Line With the Hyper-Growth Comp Group, But At a Discount to NET's 31.1x and ZS's 29.0x EV/S on CY22
Risks include competitive threats, lengthy sales cycles and rich valuation leaving no room for earnings miss
Bull and Bear Thesis for $CRWD presents an attractive entry in the low $200s for a 30% gain by year end
$CRWD Summary:
1. Gaining momentum and share in the large and expanded TAM of Cybersecurity
2. Expanding both Gross Margins and Operating Margins
3. $3B in revenue CAGR of 50%+ by 2025
4. Relative valuation to peers is discounted
5. Best investment in Cyber Security
1. Gaining momentum and share in the large and expanded TAM of Cybersecurity
2. Expanding both Gross Margins and Operating Margins
3. $3B in revenue CAGR of 50%+ by 2025
4. Relative valuation to peers is discounted
5. Best investment in Cyber Security
