CrowdStrike: Earnings Beat, Valuations, Technicals, And More

Summary

  • CrowdStrike's Q2 FY2024 report showcased strong financial performance on the back of ongoing consolidation from point solutions to platforms in the cybersecurity space.
  • As evidenced by CrowdStrike's NRR of 125.7%, customers are clearly consolidating on the Falcon platform.
  • With scale, CrowdStrike is delivering strong operating leverage, driving robust free cash flow generation.
  • At ~30x forward P/FCF, CrowdStrike is looking like a solid GARP stock. Find my updated valuation and projected returns for CRWD in this note.
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Crowdstrike headquarters in Silicon Valley

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Introduction

In late 2022, I laid out a bullish thesis for CrowdStrike Holdings, Inc. (NASDAQ:CRWD) despite the stock looking like a falling knife at the time:

Since then, CrowdStrike's stock has

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I am Ahan Vashi, a seasoned investor with professional background in equity research, private equity, and software engineering. I currently serve as the Chief Financial Engineer at The Quantamental Investor, a community pursuing financial freedom through bold, active investing with proactive risk management.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of CRWD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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