Is CrowdStrike Dancing On SentinelOne’s Grave? (NASDAQ:CRWD) – WDC NEWS 6>
– WDC NEWS 6 STAFF
This is precisely what it appears CrowdStrike’s ( NASDAQ:CRWD ) CEO George Kurtz did on the earnings call last week, seemingly alluding to SentinelOne’s ( NYSE:S ) troubles.Yes, they reported 47% annual recurring revenue (ARR) growth last quarter to $612 million, but this isn’t as impressive as it seems.SentinelOne is still not generating positive cash from operations (CFO), posting negative $40 million so far this year despite stock-based compensation (SBC), which is 38% of sales.(CrowdStrike’s CFO is $546 million through Q2, SBC is 21% of sales).SentinelOne’s dollar-based net retention is 115%, and CrowdStrike’s is over 125% ( and over 120% dating back to 2019).CrowdStrike’s Falcon platform is comprehensive and seamless and attracts more lucrative clients (the majority of the Fortune 500 along with 23,000 others) who want the best rather than a discount product.But CrowdStrike’s ARR growth was 37% last quarter, with net new ARR increasing from $174 million in Q1 to $196 million in Q2.The company’s stock-based compensation (SBC) continues to drop as a percentage of revenue, falling to 21% through Q2 this year from 23% for the same period of 2022.CrowdStrike stock isn’t cheap at 14.5x sales, but it is less expensive than some other high-growth favorite software-as-a-service ((SaaS)) companies, like Palantir (PLTR) and Snowflake (SNOW), as depicted below.
Link: https://wdcnews6.com/is-crowdstrike-dancing-on-sentinelones-grave-nasdaqcrwd/