https://crowdstrike.wistia.com/medias/8j6puxglwm
I found this 15OCT20 video helpful, having owned CRWD since last year when I discovered this Board. Kurtz does a pretty good job explaining their mousetrap. And the CTO dives a little further. BTW I could not access the briefing through the CRWD site for some reason and initially googled “CRWD INVESTOR PRODUCT BRIEFING”. The link above should get you there.
This for new board viewers:
Last year as I legged into these hypergrowth gems, I also learned about Sector Rotation where most if not all of the SAAS stocks pulled back (last Fall) on no apparent news. Can you smell/spell Algorithm?
The contributors here helped explain the pain taking place which help cement my convictions and allowed me to continue to build my positions. And I’m glad I did.
Thanks Saul for building something special here and thx to those that keep it on track.
Stay Well.
Jack
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Hi Jack,
Could you share more about Sector Rotation or maybe provide some old thread links?
I started following this board 2 months back and have reallocated most of my portfolio into the high conviction names but it can get abit jittery at times as most portfolios here have already gone up 150%+.
So when it starts trading sideways or when a dip happens, my mind does waver between fear and conviction.
Back to CRWD,
I have a position in it and I would like to ask you (and the board) about your thoughts on their decelerating YoY growth.
Revenue Subscription Revenue Subscription Customers
Q2 2019 94% 98%
Q3 2019 88% 98%
Q4 2019 89% 90% 116%
Q1 2020 85% 89% 105%
Q2 2020 84% 89% 91%
While the numbers are very high, are we seeing a trend of deceleration? Is this a concern at all for you guys?
Also, I was wondering how good are they and googled around.
[https://www.trustradius.com/products/crowdstrike-falcon/comp...](https://www.trustradius.com/products/crowdstrike-falcon/competitors)
Not sure how trustworthy such review sites are but it seems like the legacy players don't have the shittiest ratings which I thought would be the case after watching some of CRWD's CEO comments on them. A lot of the comments also mentioned how CRWD is not a magic cure all and it is just one of the solutions that enterprises will have for their security.
On the other hand, according to IDC, they grew 98.9% in 2018-2019 while the legacy players sit in the single digit range. So would you say the numbers tell the true story here?
Lastly, IDC mentioned that the worldwide market for endpoint security grew 8.8% in 2019. That doesn't sound fantastic. Right now CRWD is growing mainly by taking market share from competitors so would you say its runway would slow significantly if a few years as the broad market isn't growing anywhere fast enough to support its current trajectory? Granted its market share is about ~6% now, but i would think it only gets harder moving forward in trying to get clients to switch over time as these would be the clients that aren't the most on the ball when it comes to cybersecurity.
My thoughts is that the above is the main reason why YoY growth rates are declining.
Hope to hear any views on this!
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