CrowdStrike: High Visibility And Longer Term Growth Acceleration (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• There is sequential growth acceleration in RPOs; a leading indicator of revenues, driven by customers' adoption of the Falcon Flex subscription.
• High visibility of a large pipeline is leading to upgrades in longer term revenue and earnings estimates by Wall St.
• Valuations are rich but acceptable given CrowdStrike's 'leader-of-leaders' market leadership and longer term visibility.
• Technicals indicate some room for upside vs S&P500 as the ratio prices move up toward the top of the trading range.
• GAAP profitability is still in unprofitable territory, due to a persistent 20% of revenues SBC intensity that has not reduced despite revenues multiplying almost 3x over the past 3 years. This is a key risk as such a scenario benefits employees at the expense of minority shareholders.

Read the full article here.