Cyber Security is Still Growth

Since starting the company, CrowdStrike (CRWD) has brought cybersecurity to the cloud.

They have pioneered AI for cybersecurity, and quickly become the de-facto security platform that disrupts, displaces, and consolidates other vendors.

This stock has been really good to Mad Hedge Tech Letter followers, and we recently took profits in a successful in-the-money bull call spread in CRWD.

Money will flow into enterprise protection as the stakes get higher with hackers looking to strike gold.

When talking about the threat landscape, CrowdStrike pioneered commercial threat intelligence that governments and companies of all sizes depend on.

It's CrowdStrike that delivers billions of new threat detections every month to stop breaches.

It's CrowdStrike that is the search bar of security, where security analysts complete millions of queries daily.

What took hackers hours, has shrunk to minutes and seconds. Attack speeds will only accelerate.

The cloud is increasingly under attack and CRWD exists to protect businesses against these attacks.

CRWD tracked a 75% year-over-year increase in cloud intrusion attempts.

The cloud is today's battleground for cyberattacks.

Generative AI is an adversary force multiplier and the last few years have seen the onboarding of this new force multiplier.

Gen AI puts advanced cybercrime tradecraft in the hands of attackers of all skill levels. Gen AI will dramatically grow the adversary population.

CRWD collects trillions of threat signals daily, creating one of the world's largest and fastest-growing cyberthreat datasets.

From day one, CRWD has been an AI company, training the industry's most effective and accurate AI models to prevent attacks based on data mode.

Embedded in the Falcon platform is a virtuous data cycle where CRWD collects cybersecurity's very best threat intelligence data, builds, and trains robust preventative and generative models, and protects CRWD customers with community immunity.

In today's environment of heightened cyberattacks, the latest SEC breach disclosure regulation only increases the pressure on companies and their boards.

One of the best of breeds and its superior performance are a critical reason to why the share price has moved up in the last few years.

Let’s look at the numbers behind the business model.

Moving to the P&L, total revenue grew 33% year over year to reach $845.3 million.

Subscription revenue grew 33% over Q4 of last year to reach $795.9 million. Professional services revenue was $49.4 million, representing 26% year-over-year growth.

Subscription customers were five or more, six or more, and seven or more modules growing to 64%, 43%, and 27% of subscription customers, respectively.

CRWD is landing bigger with new customers on average adopting 4.9 modules out of the gate, an increase over last year. CRWD’s gross retention rate remained high at 98%.

CRWD is knocking it out of the park.

It’s hard to maintain growth company status in the head of major macro headwinds.

Many enterprise businesses are pulling back spend, but cybersecurity hasn’t been curtailed as of yet.

Tech companies are becoming more efficient and cybercrime hasn’t felt the pain of leaner software budgets.

This bodes well for the future of cyber security and the main players in the industry.