SWI Pick #1 - CrowdStrike - End-point Cloud Security Leader With Widening Moat

Next-gen cloud security leader with first to market advantage platform based cloud native approach. Expanding TAM and impressive FY2021 results showing clear pathway to durable cash generation.

Summary

• CrowdStrike is the leader in endpoint security, the first true cloud-native offering single-agent platform solution. It was founded by George Kurtz in 2011 and IPOed in 2019.

• I first wrote about CrowdStrike in Sep 2020. This follow-up article shows continued growth across financial and operations metrics in Q4 and FY2021 results.

• It expanded the Falcon Platform to 19 modules (from 11 in Q1’21), with 63% of customers adopting more than four modules, showing the platform approach is working.

• As a result, the company generated record annual recurring revenue (ARR), crossing the $1B mark for the first time. It also posted record operating profit and free cash flow.

• CrowdStrike acquired Humio to add more capabilities in log management. Showing it can expand organically and organically. Successful integration could expand the total addressable market for the company by $4.9B.

• CrowdStrike may look expensive on the surface, but by combining a sticky customer base with a highly scalable bus…