Shares of CrowdStrike Holdings (NASDAQ: CRWD) were up over 10% in afternoon hours on Tuesday. The stock has seen momentum since it topped revenue and earnings estimates for its fourth quarter last week and has gained 49% in the past five days.
While several companies are going through a rough patch
currently due to the global pandemic, CrowdStrike has generated much optimism
about its future. The company delivered strong revenue growth along with a
narrower loss in its most recent quarter.
CrowdStrike has benefited from the massive shift to cloud
technologies and the increasing importance of cybersecurity. The company saw
increases of 90% and more in its subscription revenue and annual recurring
revenue. The firm also saw an increase in the number of customers with ARR of
over $1 million.
CrowdStrike witnessed higher demand generated by the gap
created by Symantec in the market. These trends are expected to continue going
forward and as the need for cybersecurity and automation increases, the company
is well-positioned with its Falcon platform to address these needs.
CrowdStrike has seen an increase in the average number of
modules adopted by its new customers as well as an expansion in module adoption
within its existing customer base. Customers that have adopted five or more cloud
modules now comprise one-third of its customer base. The company gains from its
cloud-native platform that is easily deployable across public, private and
The majority of CrowdStrike’s workforce operates remotely
and this has helped the company stay free from work disruptions. CrowdStrike
believes online security threats will increase going forward and as more employees
move to working from home both in the current scenario and in future, the
demand for strong cybersecurity solutions will see a spike.
The company’s efficient, easy-to-deploy and cost-effective solutions have helped it prevail in the current environment and they can be expected to drive growth going forward as well.