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

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

Customers are choosing $CRWD over $RPD, $TENB and $PANW in vulnerability management as well

$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

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