CrowdStrike (CRWD) — Forrester Research — February 3, 2024
Forrester, a widely respected 3rd party research firm, published its Q1 2024 report on Cloud Workload Security. CrowdStrike ranked #1 in strategy and #3 behind Palo Alto and Wiz (SentinelOne partner) on current offering. CrowdStrike also ranked first in vision and innovation with its technical talent also ahead of the pack. It does want to see CrowdStrike round out its product roadmap here, but that’s coming. What does this mean? CrowdStrike’s growth potentially increases mightily as it moves from an endpoint security firm to a cloud, identity, app, forensics, log management AND endpoint security firm — all tied neatly together into one Falcon agent and interface. Not only does this position it for more revenue, but even better margins too. Why? CrowdStrike incurs pretty much all OpEx from a new client when onboarding its first module. Incrementally cross-sold modules are pure profit. This traction gives it many more modules to sell and success early on has been fantastic. Specifically, the segment is over $300 million in annual revenue on its own and is growing at a nearly 50% Y/Y clip.