3 bullish reasons, Crowdstrike

Just a few things from my notes. If anyone has contrary info or would like to add here please do.

emerging products, Bert
“11% of the revenues for the company have been coming from its emerging products area. In that area, the company has what appears to be a major opportunity in identity management which even in this environment continues to show triple digit growth. And with the recent acquisition of Humio, it now has an entry in the observability space.”

deferred revenue (typically the larger portion of CRWD’s RPO) grew 9.3%, which is within the typical historical range of Q1 to Q3 of around 10%, their sequential backlog growth jumped from -10% in Q1 to -0.1% in Q2, to now +18,2% in Q3! So in comparison to last Q we are talking about an extra $120M in contracted revenue that hasn’t made it to the top line yet (on top of last Q’s backlog of $662M). My guess is that the reason for this backlog increase is that customers have been delaying to fulfill their contractual obligations due to macro (rather than Crowdstrike delaying their fulfillment to customers, which wouldn’t make much sense). For example, customers are “looking at starting those subscription dates at staggered times (…) the good news is that those deals are confirmed. They are locked in. We signed the deal. (…) And they will be in the RPO calculations.” So that would certainly support Crowdstrike’s macro headwind story.

On the Board of Directors for Crowdstrike, Roxanne Austin paid $2.5 million on Dec. 27 and Dec. 28 for 25,000 CrowdStrike shares, an average price of $99.74. According to a form she filed with the Securities and Exchange Commission, Austin now owns 65,419 shares.

Austin, a CrowdStrike director since September 2018, is president and CEO of Austin Investment Advisors, a private investment and consulting firm, and a former president and chief operating officer of DirecTV.