CRWD - Embedded Expectations Analysis - 2021 07 26
CrowdStrike Holdings, Inc. (CRWD:USA) currently trades near historical highs relative to UAFRS-based (Uniform) assets, with a 38.0x Uniform P/B. At these levels, the market is pricing in bullish expectations, but management may be concerned about their leadership position in cybersecurity, Falcon Platform capabilities, and ARR growth.Specifically, management may have concerns about growing module deployments per new customer, the sustainability of demand in the public sector, and the effectiveness of investments in their global reach and cloud platform. In addition, they may be exaggerating their leadership position in cybersecurity, the threat of high-profile breaches and vulnerabilities, the potential of their Preempt and Humio acquisitions, and the capabilities of their Falcon Platform. Also, they may lack confidence in their ability to sustain development operation sales, particularly for drift detection products, and provide a fully managed and hassle-free solution to customers. Furthermore, they may lack confidence in their ability to maintain ARR growth, sustain operating margin growth, and achieve their net income per share targets.
CrowdStrike is a holding company. Through its subsidiaries, the company provides a cloud-delivered solution for next-generation endpoint protection that offers 10 cloud modules on its Falcon platform via a SaaS subscription-based model that spans multiple large security markets, including endpoint security, security and IT operations (including vulnerability management), and threat intelligence. The company conducts its business in the United States, as well as locations internationally, including in Australia, Germany, India, Romania, and the United Kingdom.
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