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CrowdStrike is Vestact's most "out there" recommended stock. It's a cybersecurity software service provider that is growing fast. CrowdStrike jumped 9.3% yesterday after reporting strong second quarter numbers. Their revenue shot up nearly 37% year-on-year to $731.6 million. Earnings per share also grew from $0.36 to $0.74, surprising everyone in a good way.
This company offers tools and services to protect against cyberattacks, often targeting the vulnerabilities present in software and internet products.
Annual Recurring Revenue (ARR) was $2.93 billion, slightly below analyst estimates. Subscription revenue stood at $689.9 million, showing a solid 36.3% increase year-over-year. Professional services revenue climbed impressively by 43.9% to $41.7 million.
Profit-wise, they did well. Subscription profit hit $550.4 million, surpassing projections, and professional services profit slightly exceeded expectations at $17.8 million. This performance suggests that the cybersecurity market is back in growth mode.
CrowdStrike pioneered the use of AI-powered protection to replace signature-based antivirus software, over 10 years ago. Their Falcon platform uses analytics to help prioritise critical vulnerabilities that introduce risk in systems and employs AI tools to look out for new indicators of attack.
After a nasty share price slump in 2022, CrowdStrike is up about 58% year-to-date, more than the broader market's climb of 18%. It's been a bumpy ride, but we are still optimistic that the company will outperform more staid holdings.
