Crowdstrike Q3 - Strong Revenue

CrowdStrike offers cybersecurity software and consulting services, and is a Vestact-recommended portfolio holding. It's probably our most future-focused and ambitious pick yet, because it's not profitable.

The company was only founded in 2011 when they rolled out the initial version of their CrowdStrike Falcon platform to detect threats and stop breaches. The software operates very flexibly, across cloud platforms and on multiple end-devices. They have over 21 000 corporate customers, who pay ongoing subscription fees.

CrowdStrike's third quarter results reported on Tuesday night were not well-received. The stock price was down heavily on Wednesday. Everyone who owns it in our client base is under water.

Quarterly revenue grew 53% year-over-year to reach $581 million, but the projection for annual recurring revenue was disappointing. Management complained that "increased macroeconomic headwinds elongated sales cycles with smaller customers and caused some larger customers to pursue multi-phase subscription start dates".

The products that CrowdStrike sells are in demand, and the profits will come. We are going to have to grit our teeth and hold this one for the long-term.