Crowdstrike Holdings Inc (CRWD)

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CrowdStrike: Q3 2021 Results Review - Phenomenal Growth

Dec. 3, 2020

Summary

CrowdStrike reported phenomenal Q3’2021 results. Growth accelerated from Q2 to achieve $907M ARR, of which 92% came from subscriptions. Net dollar-based net retention rate exceeded 120%.

Underlying the rapid growth were CrowdStrike’s impressive AI-enabled Threat Graph and its ability to add capabilities to fortify customer defenses and identity-based attacks. Okta became a partner and customer!

Signs of economies of scale and sustainability are crystal clear as CrowdStrike reduced GAAP operating loss YoY and generated free cash flow for the fifth consecutive quarter.

Coupled with a 10% CAGR of the total addressable market and under-investment in cloud security worldwide, CrowdStrike has so much room to grow from here.

CrowdStrike's outstanding performance deserves to trade at a premium at 36x EV/Sales.