CrowdStrike Earnings: On-Target CrowdStrike Posts a Solid Period as We Up Our Long-Term Estimates

We are raising our fair value estimate for narrow-moat CrowdStrike to $220 from $163 as we raise our long-term growth and profitability outlook following the firm’s strong third-quarter results. While macroeconomic headwinds continue to hamper customer decision-making and elongate sales cycles, we believe CrowdStrike’s strong execution, sticky platform, and expanding market opportunity stand to deliver long-term returns for shareholders. As the security landscape becomes more complex, we believe larger players like CrowdStrike stand to benefit from increased customer spending on security. In addition, by expanding beyond its core endpoint security market, we believe CrowdStrike can continue to solidify its economic moat by increasing its customer penetration and unlocking more cross/up-selling opportunities.