In today's episode, we'll be analyzing Crowdstrike. (Ticker symbol: CRWD)
This company is really on fire, my friend! They just announced their quarterly result on the 2nd of December 2020.
Year-over-year subscription revenue growth and increase in annual recurring revenue (ARR) was more than 80% and subscription gross margin was 77%.
Although they have yet to be profitable (mainly due to reinvestment of the earnings to grow the business), they were still able to produce positive cash flow and $76.1 million in free cash flow during this latest quarter.
OVERVIEW:
CrowdStrike Holdings, Inc. (the “Company”) was formed on November 7, 2011.
The Company provides a leading cloud-based solution for next-generation endpoint and cloud workload protection. What does that mean? Meaning they are providing cloud-based protection from cyberhackers using their 16 cloud modules on the Falcon platform.
Crowdstrike is not just any ordinary antivirus or cybersecurity company, this company is here to redefine security for this cloud era.
Everything is going online right now. In order to scale and grow, connect, shop, and so on, businesses, users, customers are all going online. And with Covid-19, this whole time frame of transitioning from offline to online has been drastically shortened.
According to a 2019 Cisco white paper, the number of connected devices is expected to be 28.5 billion by 2022, up from 18 billion in 2017. As users behavior rapidly shift online, online cloud security has become more important than ever. Why?
Because today’s cybersecurity threat landscape is more dangerous than before. Breaches are complex and very often executed over multiple steps known in the industry as the threat lifecycle.
The typical threat lifecycle starts with an initial exploit to enter a system, historically using malware, but now using malware-free or fileless methods, to penetrate endpoints (laptops, desktops, servers, virtual machines, and IoT devices).
Once inside, adversaries move laterally across the corporate environment where they collect credentials and escalate privileges enabling the typical adversary to download a larger, more destructive malware program or connect with an external control source.
At this stage in the threat lifecycle, the adversary is able to encrypt, destroy, or silently exfiltrate sensitive data.
Companies getting cyberattacks can be very costly to the company. A good example was an incident that happened in 2017, the WannaCry ransomware attack. Cyber risk modeling firm, Cyence Inc. estimated that the overall global economic costs incurred were between $4 billion and $8 billion.
So does it mean, all you need is Antivirus? Is it that simple?
The answer is No. Why?
Well...Check out this episode to find out more!
DISCLAIMER: This is not financial advice or even a recommendation, so do not take this as financial advice. If you need proper advice, do speak to a fiduciary or a financial advisor and they'll be able to help you with your specific needs.
For more info about Delugne Investing, check out Delugne.com to find out more!
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