CrowdStrike (CRWD) Extends MDR Capabilities With MXDR Launch

CrowdStrike Holdings CRWD recently introduced a new Managed eXtended Detection and Response (“MXDR”) service, CrowdStrike Falcon Complete XDR. The company claims that MXDR is designed to help organizations address the cybersecurity skill gap.

Built on the CrowdStrike Falcon platform, the newly introduced Falcon Complete XDR service expands the capabilities of its existing industry-leading MDR service. CrowdStrike stated that its technology and channel partners are leveraging its Falcon Complete XDR platform for delivering MXDR services to customers.

The company launched its new product just a week after it introduced the world’s first XDR platform to stop breaches for Extended Internet of Things (XIoT) assets, Falcon Insight for IoT. The product identifies XIoT threats like ransomware and malicious project files to reduce risks by leveraging asset-specific contexts, such as device types, operating system versions and protocols.

Moreover, the product provides customized policy recommendations for XIoT assets, which empower organizations to limit the system burden and manage sensor updates conveniently. With integrated response actions, the new solution ensures minimal operational disruptions.

CrowdStrike Price and Consensus CrowdStrike Price and Consensus

CrowdStrike price-consensus-chart | CrowdStrike Quote

How Does the MDR Service Help Organizations?

Citing a report from Enterprise Strategy Group, CrowdStrike stated that 47% of enterprises believe that they lack the necessary skilled cybersecurity workforce in their IT teams. The report also forecasts that there is a gap of about 3.4 million skilled workforces for cybersecurity operations, which is restraining organizations from implementing a mature security program.

CrowdStrike’s MDR service helps organizations counter this skill gap issue. Per the company, the MDR service provides 24/7 expert management, threat hunting, monitoring and end-to-end remediation across all key attack surfaces to close the cybersecurity skill gap. MDR creates seamless collaboration among human expertise, technology and an enterprise’s security team to close the gap between detection and response and deliver the outcome of stopping breaches.

The company has pioneered the MDR category with the CrowdStrike Falcon Complete offering. Per a Gartner report, CrowdStrike has the largest market share in the MDR category. Moreover, International Data Corporation and Forrester recognize CRWD as a market leader in this category. In the first-ever MITRE Engenuity ATT&CK Evaluations for security service providers, the CrowdStrike Falcon Complete platform achieved the highest detection coverage of adversary behavior (detecting 75 of 76 or 99%) out of the 16 vendors evaluated.

With the launch of Falcon Complete XDR, CrowdStrike has the capabilities of the MDR service across its all supported CrowdStrike Falcon modules and third-party vendors, including CrowdXDR Alliance partners. The newly launched MXDR service combines human expertise with AI-powered automation and threat intelligence to operationalize XDR for customers of any security maturity.

Tom Etheridge, the chief global services officer at CrowdStrike, stated that “With Managed XDR services, organizations can entrust the implementation, management, response and end-to-end remediation of advanced threats across multiple vendors and attack surfaces — all without the burden, overhead or costs of deploying and managing a 24/7 threat detection and response function on their own."

Strong Demand Driving Growth

CrowdStrike is benefiting from the rising demand for cyber-security solutions due to the slew of data breaches and the increasing necessity for security and networking products amid the growing hybrid working trend. The continued digital transformation and cloud-migration strategies adopted by organizations are key growth drivers.

Per Statista, the worldwide cybersecurity market is projected to reach $189.9 billion in 2023 and $266.2 billion by 2027 from $173.5 billion in 2022. Going by the Grand View Research report, the global cybersecurity market is projected to witness a CAGR of 12.3% during the 2023-2030 period. These predictions bode well for CRWD, which has a diversified product portfolio for large and mid-sized organizations to protect their sensitive data.

CrowdStrike has been witnessing top and bottom-line growth for the past several quarters due to the strong demand environment for cyber-security solutions and its sustained focus on enhancing product offerings through in-house research and development and acquisitions. In fiscal 2023, the company’s revenues jumped 54.4% year over year to $2.24 billion, while non-GAAP earnings surged 130% to $1.54 per share.

Zacks Rank & Stocks to Consider

Currently, CrowdStrike carries a Zacks Rank #3 (Hold). Shares of CRWD have soared 26.2% year to date (YTD).

Some better-ranked stocks in the broader technology sector are Wix.com WIX, Zscaler ZS and Adobe ADBE, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Wix.com’s first-quarter 2023 earnings has been revised upward to 23 cents per share from a loss of 9 cents per share 60 days ago. For 2023, earnings estimates have been revised northward by 119.1% to $1.49 per share in the past 60 days.

Wix.com's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 225%. Shares of WIX have risen 18.3% YTD.

The Zacks Consensus Estimate for Zscaler's third-quarter fiscal 2023 earnings has been revised a penny northward to 39 cents per share in the past 30 days. For fiscal 2023, earnings estimates have been revised northward by 4 cents to $1.52 per share in the past 30 days.

Zscaler’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 29.7%. Shares of ZS have declined 7.9% YTD.

The Zacks Consensus Estimate for Adobe's second-quarter fiscal 2023 earnings has been revised upward by a penny to $3.78 per share over the past 30 days. For fiscal 2023, earnings estimates have moved upward by 3 cents to $15.41 per share in the past 30 days.

Adobe's earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 2.6%. Shares of ADBE have soared 13% YTD.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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