CrowdStrike (NASDAQ: CRWD), a cybersecurity company, has seen its stock price decline by roughly 30% over the last 3 months. While investors have been somewhat circumspect about cloud software stocks and other growth stocks in recent months on account of a possibility of an economic slowdown, the concerns may have been more pronounced for CrowdStrike, which is one of the priciest stocks in the cloud software space. The company currently trades at over 28x projected 2020 revenues. Moreover, analysts have also been somewhat mixed on the stock, considering its high valuation. There is a possibility that the stock could face some more selling pressure, as its IPO lock-up period is set to end in early December.
We âstep backâ from these recent swings to review CrowdStrike’s performance over the last few years, as a context for what might come next. Our Interactive dashboard, Why Has CrowdStrike Stock Been Trending Lower?Â reviews the near term reasons and the big picture.
The context for the last few years:
A closer look At CrowdStrikeÂ Total Revenues over the last few years and the outlook
Total Revenues for CrowdStrike increased from $118 Mil in 2018 to $250 Mil in 2019, marking an increase of 110%.Â This compares with Total Revenues growth ofÂ 125% in 2018.Â We expect Total Revenues growth to be 80% in 2020.
A closer look At CrowdStrike’s Total ExpensesÂ over the last few years and the outlook
Total Expense for CrowdStrike increased from $253 Mil in 2018 to about $388 Mil in 2019, an increase of 53%. This compares with Total Expense growth ofÂ 76% in 2018.Â We expect Total Expense growth to be 26% in 2020.
How doesÂ CrowdStrike’s Revenue Growth compare with rivals?
For more details on howÂ CrowdStrikeÂ Revenue Growth compares with rivals, view our interactive dashboard analysis.
How has Â CrowdStrike’sÂ EBT trended?
EBT for CrowdStrike declined from -$135 million in 2018 to -$139 million in 2019. We expect EBT to increase to -$38 million in 2020.
How has CrowdStrike’s Net Income and EPS trended?
For more details onÂ CrowdStrike’s Net Income and EPS, view our interactive dashboard analysis.
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