CrowdStrike Impresses With Platform Strategy>
Seeking Alpha – Donovan Jones
CrowdStrike (OTC:CRWD) went public on June 11, 2019 at a price of $34.00 per share, raising $612 million in gross proceeds. CRWD is producing impressive financial and operational results while dramatically expanding its addressable markets through its platform approach, so Iâm Bullish on the stock at its current level. In its last earnings call, management highlighted a number of key metrics that the firm has achieved as of Q4 FY20, including an annual recurring revenue growth rate of 92% [YoY] and a dollar-based net retention rate of 124%. The dollar-based net retention rate is an extremely important figure as it indicates that the firm is obtaining 124% of the previous periodâs revenues from the same customer cohort. Management said that its team was able to capitalize on the retrenchment of Symantec in certain parts of the security market, with several partners launching replacement campaigns to fill the void. The companyâs platform strategy appears to be bearing fruit and providing it with a much larger addressable market. The firm has been building additional modules to its Falcon suite that management says expands its total addressable market [TAM] to an expected $32 billion by 2022. CRWDâs stock price isnât cheap compared to industry competitors, but the firm appears to be executing extremely well and producing impressive numbers and operating metrics for a SaaS company.
Link: https://seekingalpha.com/article/4338650-crowdstrike-impresses-platform-strategy