George Kurtz is pumped up…and why not? CrowdStrike’s business appears to be on a fast track and entering a new phase of growth, despite the difficult macro and elongated sales cycles. The company’s products are considered best in class, its business is growing steadily and an improved profitability and cash flow outlook had investors excited, at least up until this week. A still challenging environment and a rich 13X revenue multiple perhaps led to some profit taking, but Gen AI could be the next catalyst for the company. In the race to close the SecOps staffing gap, CrowdStrike has what appears to be a strong play with a natural language-based intelligent assistant known as Charlotte AI.
In this Breaking Analysis we update our scenario on security leader CrowdStrike. We’ll review the company’s recent progress, share survey data that shows where it is strong and where there may be icebergs ahead. And we’ll preview Fal.Con 2023 which takes place next week in Las Vegas.
2H 2023 – Good for Cybersecurity Platform Plays
This year has seen ups and downs for CrowdStrike and the cyber industry in general.
Above is a YTD chart of some cyber-related data points showing the performance of Palo Alto Networks, CrowdStrike, Zscaler, the Nasdaq and the BUG cybersecurity ETF. As you can see the sector is not immune to tech headwinds as the BUG is performing below the Nasdaq. But there are definitely some bright spots with the likes of Palo, CrowdStrike and ZS, which are outperforming the Nasdaq this year by a decent margin. Those three are playing the consolidation game effectively while many others are losing share.
Generally these platform plays, of which CrowdStrike is one of the more prominent, a ..
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