Is Crowdstrike Stock a Buy or Sell?
Crowdstrike (CRWD) is the leader in cybersecurity. Is it a buy or sell? Let us dive into its fact, data and opinions.
Business Overview 📖
Crowdstrike, founded in 2011, sells SaaS cybersecurity software to enterprises, protects endpoint devices, and secures cloud application development workflow.
Crowdstrike is competing in the cybersecurity industry with competitors like SentinelOne, Microsoft, Fortinet, Palo Alto Network, and Elastic.
Management Quotes 📢
Crowdstrike “have a significant technology lead with no competitor matching our scalability, performance, ease of use and commitment to customers.”
Crowdstrike “ leverages the network effects of crowdsourced data applied to modern technologies such as AI, cloud computing, and graph databases.”
Crowdstrike “collect, process, analyze and correlate vast amounts of high fidelity data across the entire threat lifecycle using a combination of AI and behavioral pattern-matching techniques to stop breaches.”
Crowdstrike “crowdsources data across entire customer base and taking advantage of economies of scale, … enables AI algorithms to be uniquely effective.”
Growth 🌱
- Quarterly Revenue Growth YoY (302M -> 487.83M) +62%
- Revenue trailing 12 months (996M -> 1.64B) +64%
Profitability 💰
- Gross Margin 74%
- Operating Margin -5%
- Net Margin -6%
- Gross Profit Q/Q (224M -> 361M) +61%
- Gross Profit TTM (736M -> 1.2B) +64%
- Operating Expenses Q/Q (255M -> 384.89M) +51%
- Operating Expenses / Gross Profit (384.89M / 361M) 107%
Valuation ⚖️
- Market Cap 40.57B
- P / S: 25
- P / Gross Profit: 34
- P / Operating Income: No income
- P / E: No earnings
Bull Say 👍
- Crowdstrike revenue does not show a sign of slowing down.
- Crowdstrike has a network effects moat. The more security attacks it receives, the more robust its cloud solution becomes.
- Cybersecurity industry will continue growing rapidly because the world is becoming more digital.
- Companies are unlikely to cut cybersecurity spending even during the recession because the damages are usually too big to risk.
Bear Say 👎
- Crowdstrike is still a “one-trick pony”. It could lose customers to big companies like Microsoft if customers decide to cut costs by consolidating vendors.
- Crowdstrike is not profitable yet.
- Crowdstrike has a high valuation (P/S: 25)
Bottomline 💡
Our model would give a HOLD rating by analyzing all the data, facts, and opinions.
