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Even though you are a Falcon Administrator, you discover you are unable to use the "Connect to Host" feature to
gather additional information which is only available on the host.
Which role do you need added to your user account to have this capability?
A. Real Time Responder
B. Endpoint Manager
C. Falcon Investigator
D. Remediation Manager Answer: A Question: 41
Which port and protocol does the sensor use to communicate with the CrowdStrike Cloud?
A. TCP port 22 (SSH)
B. TCP port 443 (HTTPS)
C. TCP port 80 (HTTP)
D. TCP UDP port 53 (DNS) Answer: B Question: 42
What type of information is found in the Linux Sensors Dashboard?
A. Hosts by Kernel Version, Shells spawned by Root, Wget/Curl Usage
B. Hidden File execution, Execution of file from the trash, Versions Running with ComputerNames
C. Versions running, Directory Made Invisible to Spotlight, Logging/Auditing Referenced, Viewed, or Modified
D. Private Information Accessed, Archiving Tools C Exfil, Files Made Executable Answer: A Question: 43
How long are detection events kept in Falcon?
A. Detection events are kept for 90 days
B. Detections events are kept for your subscribed data retention period
C. Detection events are kept for 7 days
D. Detection events are kept for 30 days Answer: B Question: 44
What can the Quarantine Manager role do?
A. Manage and change prevention settings
B. Manage quarantined files to release and download
C. Manage detection settings
D. Manage roles and users Answer: B Question: 45
How do you find a list of inactive sensors?
A. The Falcon platform does not provide reporting for inactive sensors
B. A sensor is always considered active until removed by an Administrator
C. Run the Inactive Sensor Report in the Host setup and management option
D. Run the Sensor Aging Report within the Investigate option Answer: C Question: 46
The Falcon sensor uses certificate pinning to defend against man-in-the-middle attacks.
Which statement is TRUE concerning Falcon sensor certificate validation?
A. SSL inspection should be configured to occur on all Falcon traffic
B. Some network configurations, such as deep packet inspection, interfere with certificate validation
C. HTTPS interception should be enabled to proceed with certificate validation
D. Common sources of interference with certificate pinning include protocol race conditions and resource contention Answer: B Question: 47
You have an existing workflow that is triggered on a critical detection that sends an email to the escalation team. Your
CISO has asked to also be notified via email with a customized message.
What is the best way to update the workflow?
A. Clone the workflow and replace the existing email with your CISO's email
B. Add a sequential action to send a custom email to your CISO
C. Add a parallel action to send a custom email to your CISO
D. Add the CISO's email to the existing action Answer: C Question: 48
You have been provided with a list of 100 hashes that are not malicious but your company has deemed to be
inappropriate for work computers. They have asked you to ensure that they are not allowed to run in your environment.
You have chosen to use Falcon to do this.
Which is the best way to accomplish this?
A. Using the Support Portal, create a support ticket and include the list of binary hashes, asking support to create an
"Execution Prevention" rule to prevent these processes from running
B. Using Custom Alerts in the Investigate App, create a new alert using the template"Process Execution" and within
that rule, select the option to "Block Execution"
C. Using IOC Management, gather the list of SHA256 or MD5 hashes for each binary and then upload them. Set all
hashes to "Block" and ensure that the prevention policy these computers are using includes the option for "Custom
Blocking" under Execution Blocking.
D. Using the API, gather the list of SHA256 or MD5 hashes for each binary and then upload them, setting them all to
"Never Allow" Answer: C Question: 49
Which is a filter within the Host setup and management > Host management page?
A. User name
C. BIOS Version
D. Locality Answer: B Question: 50
How do you assign a Prevention policy to one or more hosts?
A. Create a new policy and assign it directly to those hosts on the Host Management page
B. Modify the users roles on the User Management page
C. Ensure the hosts are in a group and assign that group to a custom Prevention policy
D. Create a new policy and assign it directly to those hosts on the Prevention policy page Answer: C Question: 51
Where do you obtain the Windows sensor installer for CrowdStrike Falcon?
A. Sensors are downloaded from the Hosts > Sensor Downloads
B. Sensor installers are unique to each customer and must be obtained from support
C. Sensor installers are downloaded from the Support section of the CrowdStrike website
D. Sensor installers are not used because sensors are deployed from within Falcon Answer: A Question: 52
Which of the following applies to Custom Blocking Prevention Policy settings?
A. Hashes must be entered on the Prevention Hashes page before they can be blocked via this policy
B. Blocklisting applies to hashes, IP addresses, and domains
C. Executions blocked via hash blocklist may have partially executed prior to hash calculation process remediation
may be necessary
D. You can only blocklist hashes via the API Answer: C Question: 53
An administrator creating an exclusion is limited to applying a rule to how many groups of hosts?
A. File exclusions are not aligned to groups or hosts
B. There is a limit of three groups of hosts applied to any exclusion
C. There is no limit and exclusions can be applied to any or all groups
D. Each exclusion can be aligned to only one group of hosts Answer: C Question: 54
Why is it critical to have separate sensor update policies for Windows/Mac/*nix?
A. There may be special considerations for each OS
B. To assist with testing and tracking sensor rollouts
C. The network protocols are different for each host OS
D. It is an auditing requirement Answer: A Question: 55
What information is provided in Logan Activities under Visibility Reports?
A. A list of all logons for all users
B. A list of last endpoints that a user logged in to
C. A list of users who are remotely logged on to devices based on local IP and local port
D. A list of unique users who are remotely logged on to devices based on the country Answer: B
CrowdStrike Administrator tricks - BingNews
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https://killexams.com/exam_list/CrowdStrikeCrowdStrike: Rule Of 65 And Counting
Introduction and investment thesis
CrowdStrike (NASDAQ:CRWD) continued to impress investors with its FY24 Q3 earnings, which showed that topline growth slowdown could be near a bottom. Cloud cost optimization efforts prevailed during the quarter resulting in more cautious expansion from existing customers and elongation of sales cycles. However, this has been offset by the continued success of emerging products, especially LogScale, Cloud Security and Identity Security, which could be joined by Falcon for IT in 2024.
Meanwhile, Free Cash Flow generation hit a new a record with $239 million, resulting in a FCF margin of 30.4%. This has been driven by record non-GAAP subscription gross margin of 80%, and record GAAP and non-GAAP operating margin. Based on the company’s exact update of its target operating model FCF margin has further room to increase to the 34-38% range.
In the light of these trends, I believe CrowdStrike reached an important fundamental turning point in the Q3 quarter, which can be measured by its Rule of 40 metric. This is one of the most popular metrics in the SaaS space to determine the attractiveness of a company, aggregating topline growth and FCF generation ability. A number above 40 is considered attractive, but if we look at CrowdStrike we can see that the company is playing in another league. 34.9% yoy Annual Recurring Revenue (ARR) growth and 30.4% FCF margin in Q3 add up to ~65, which is an increase from ~63 in Q2 breaking the negative trend of exact quarters:
Looking at current momentum and the new product announcements at Fal.Con back in September I believe this is not a one-time increase in the Rule of 40 metric, it’s rather the beginning of a new upward trend. Why I believe so, and what could be the most important risk factors to this thesis are the main themes of the upcoming paragraphs.
Beat-and-raise with a minor beauty flaw
CrowdStrike surpassed the $3 billion ARR mark in its FY24 Q3 quarter with a closing ARR of $3.15 billion. This has been a yoy increase of 35%, which has been only slight decrease from 37% in the previous quarter:
This means that the pace of topline growth slowdown seems to be decreasing, which can be attributed to the following factors in my opinion:
CrowdStrike is the leading one-stop-shop cybersecurity platform on the market in times when 75% of organizations want to consolidate their security vendor. The company’s unique licensing program, Falcon Flex enables customers to easily gain access to all modules through a simple consumption-based model, which builds a frictionless way towards consolidation on the Falcon platform. Looking at module adoption rates from FY24 Q2 we can see that the process is working smoothly:
63% of subscription customers use 5 or more modules, while the number of deals involving 8 or more modules increased 80% yoy in Q2. This trend has continued into Q3 as the same number increased by 78% yoy demonstrating the raison d'être of the consolidation narrative.
Strong growth of emerging products, especially LogScale, Cloud Security and Identity Security. LogScale surpassed the $100 mln ARR this quarter, while the number of customers using Cloud Security increased 45% yoy. As I’ve covered these products in my previous article on the company (CrowdStrike: Stronger Than Ever) I don’t want to elaborate on them more, only remind investors that they should be an important engine of future growth:
The adoption of LogScale and Identity Security is only in the early innings, while the Cloud Security business still managed to accelerate its growth in Q3 despite being in a more mature phase of adoption.
Increasing adoption of Falcon Go, CrowdStrike’s tailored, easy-to-use cybersecurity solution for the SMB segment. The company introduced the solution on Amazon Business recently, which could further increased adoption rates in the upcoming quarters.
Beside these main themes the strengthening ties with the federal government have also been an important contributor to ARR growth, which was evidenced by a record quarter for Q3.
Thanks to these positive trends yoy net new ARR growth turned back to positive territory during the quarter signaling the beginning of possible topline growth reacceleration:
Net new ARR came in at $223 million growing 13% yoy after two quarters of 9-10% decrease. Based on management’s guidance for flat to modestly up net new ARR for FY24 the implied guidance for Q4 should be around $240 mln. If this holds, it would result in ~$3.4 bln ending ARR for FY24, meaning a yoy growth rate of 33%. Although this would still mean a further gradual decline from 35% yoy growth in the Q3 quarter, if we factor in the usual conservatism of management, I believe topline growth reacceleration could already happen next quarter.
The most important risk factor against this thesis in the short run has been a weaker print in remaining performance obligations (RPO) for the Q3 quarter:
As CrowdStrike does not publish exact figures for RPO from FY24 Q2 onwards there are only rounded figures available for the past two quarters, although they are still helpful for analyzing the big picture. Q2 was a strong quarter from an RPO perspective, but Q3 seems to be somewhat muted. In the light that some competitors, like Palo Alto Networks (PANW) posted disappointing billings forecasts for the year this could supply some reason for concern.
Analysts tried to ask management about this Topic on the Q3 earnings call, but there hasn’t been a direct answer to the question. What they shared, is that business trends in October have been strong, but they didn’t comment on trends observed during November. Nonetheless, Q4 guidance has been de-risked from this perspective as management assumed that there won’t be a typical budget flush that used to happen during this quarter. If we see a strong print in RPO in Q4, let’s say around $4 bln, it would mean that the budget flush happened anyway, which would provide a strong setup going into FY25. So, this will be a key metric to look out for.
Finally, another key element to look out for during FY25 will be the company’s recently revealed new module, Falcon for IT, which could open new dimensions for the company already next year. Falcon for IT is a major move from CrowdStrike to broaden its business scope outside of cybersecurity to the IT space in more general.
The core thinking behind this module is to utilize CrowdStrike’s existing technologies to help organizations manage their IT infrastructure. CrowdStrike has already proved in the field of cybersecurity that it has probably the best platform for collecting and analyzing data at scale, and taking automated actions based on this. This core feature of the platform extended by Charlotte AI could come handy in several general IT infrastructure related processes like asset inventory or assessing CPU or software utilization. This could make CrowdStrike a more direct competitor for Datadog (DDOG), Dynatrace (DT) or Elastic (ESTC) in the IT observability space, just like some of these players already ventured into the cybersecurity space.
Currently, CrowdStrike estimates a TAM of $8 billion for Falcon for IT for 2028, approximately half the size for its LogScale solution. LogScale managed to grow into a $100 million ARR business within 2 years, I believe Falcon for IT could achieve at least the same. Based on the Q3 earnings call the new module is already highly sought after by clients, even before its expected launch in Q1 next year:
“Well, coming out of Falcon, I would say that was the number one requested feedback item across all the great announcements that we had.” – George Kurtz, CEO and Co-Founder
I believe that the launch of Falcon for IT next year combined with the strong performance of already marketed emerging products could result in topline growth re-acceleration over the coming quarters. This should be further supported by improving trends in the cloud cost optimization cycle, which has been called out by hyperscalers like Microsoft (MSFT) or Amazon (AMZN) on their exact earnings calls.
Ambitious margin targets set after meeting previous ones
Besides encouraging future revenue growth prospects, FCF margin is the other side of the Rule of 40 coin, which needs to show a convincing upward trend. So far this year this has been accomplished as FCF generation grew 40% yoy in the first three quarters of FY24 by reaching $655 million YTD:
The real question is whether this trend continues into FY25? Well, based on the company’s exact updated operating target model it has significantly more room to go:
CrowdStrike intends to achieve these goals in a 3–5-year time frame but looking at their previous goals we could’ve observed that they tend to reach these much sooner. The main drivers behind further margin improvement are increasing economies of scale and continued optimization of the company’s cost structure in the form of optimizing compute and storage or leveraging lower cost geographies.
Based on CrowdStrike’s execution over the past several years I believe they will meet or probably exceed the 34-38% FCF goals, which should be a further significant improvement from current ~30% levels.
Combining the strong topline growth prospects for FY25 and possibly further increasing FCF margin I think the current Rule of 65 metric of the company should extend further to 70+ territories soon. Even among SaaS companies this could be an exceptional performance which I believe is far from priced into the shares yet.
Since the IPO of CrowdStrike back in June 2019 the valuation of the company’s shares has fluctuated in a wide range. Looking at the most basic, Price/Sales ratio it has reached its post-IPO high somewhat above 90 just to fall back below 15 during the Covid induced March 2020 stock market sell-off:
Zooming into the past two years we could observe a significant meltdown of the multiple from ~30 to the 10-15 range:
It’s important to note that no matter how bleak economic prospects got, and tech valuation multiples compressed, the P/S ratio of CRWD didn’t fall below 10. Based on this I will apply the multiple of 10 as the negative scenario in my simplified valuation framework.
I believe an average P/S multiple of 20 could be a realistic scenario for the upcoming years as inflation possibly continues to cool down, and interest rates decrease leaving space for valuation multiples to expand. Of course, this only holds if the above-mentioned improvements in fundamentals continue. Currently, shares of CrowdStrike trade at a multiple of 19, so they are valued around my base-case scenario.
Finally, I am assuming a P/S multiple of 25 as an optimistic scenario, where tech becomes the darling of investors again partly resulting from the transformational impact of AI on the sector. This, combined with decreasing interest rates could blow up valuations in the sector in my opinion leading to more aggressive levels like in the back half of 2022.
In the light of these scenarios my simplified valuation framework looks as follows, calculating with 2% annual shareholder dilution and a CAGR of 35% for sales:
From the table above we can see that currently there is a small upside for shares in the case of the base case scenario, as they trade at $235 compared to $256 assuming a P/S multiple of 20. However, as we move further down the timeline, we can see that thanks to strong sales growth at the company a P/S multiple of 20 would result in a share price of $593 in 3 years’ time. This would mean an increase of ~150% within 3 years, which is very attractive in my opinion.
Looking at the negative scenario we can see that shares are priced very generously currently and could only catch up to their intrinsic value within 2 years. So, if inflation, and thus interest rates stay stubbornly high, and the fundamentals of the company would begin to deteriorate (e.g.: as a result of increasing competition) I believe investors would have to wait until the end of FY26 until shares become fairly valued.
Finally, in the case of an optimistic scenario the share price could increase almost 140% within two, and more than 200% within 3 years. If current tailwinds continue into FY25 and afterwards, and new products continue to be on fire I think this is also a possible scenario.
The conclusion from the above is, that shares seem fairly (or according to some analysts a bit aggressively) valued at current levels, but as we move into FY25 and beyond the fair share price could increase rapidly. Buying CrowdStrike shares now and hold them for the upcoming years seems an attractive investment opportunity in my opinion.
As a sidenote there could be more negative or positive scenarios than the ones presented above, so take these as a rough guideline for valuation.
Important risk factors that could lead to more negative scenarios in my opinion are the increasing competitive threat from Microsoft with its low-cost, bundled security solution, a potentially prolonged economic downturn resulting in continued cloud cost optimization efforts, higher inflation for longer combined with higher interest rates, or a possible large scale security breach by one or more CrowdStrike customers, which could undermine the trust in CrowdStrike’s Falcon platform.
In the current fragile economic environment if a SaaS company is able to operate at a Rule of 40 it’s a remarkable performance in my opinion. CrowdStrike closed its most exact quarter as a Rule of 65 company, which could increase above 70 in the upcoming year. If Rule of 40 is remarkable, I would call this stellar. Although the market began to price this in recently as shares surged almost 40% in the past month or so, there is still considerable upside for an investor who takes a longer-term perspective. I am not sure it’s a good strategy to sit and wait for a larger pullback as this opportunity may have passed for a while.
Tue, 05 Dec 2023 02:05:00 -0600entext/htmlhttps://seekingalpha.com/article/4656052-crowdstrike-rule-of-65-and-countingCrowdStrike Has Multiple Cybersecurity Growth Drivers In Place For 2024
CrowdStrike (CRWD) is well-positioned to continue to gain market share across the cybersecurity sector.
The company’s platform, made up of a number of AI-powered products, is set to drive healthy expansion in the year ahead. For fiscal 2025 (Jan.), the consensus revenue estimate of $3.93 billion represents growth of 28.9%.
CrowdStrike has been executing well, balancing strong top-line growth with margin expansion and improving free cash flow. In fiscal Q3 (Oct.), CrowdStrike’s revenue of $786 million advanced 35%. Operating margin of 22% was up 700 basis points year over year. Free cash flow was a record $239 million (30% margin).
In the October quarter, the company added a record $223.1 million of net new annual recurring revenue (ARR), with total ARR rising 35% to $3.153 billion. CrowdStrike wants to reach $10 billion in total ARR in five to seven years.
The company continues to take business away from legacy vendors in its core endpoint security market, where it still has less than a 20% share. The endpoint business alone is expected to make up around half of total ARR at the $10 billion level.
CrowdStrike’s cloud security business is emerging as a key growth driver. Organizations are increasingly replacing point products in favor of cloud security platforms. CrowdStrike sees total ARR for the cloud security unit reaching $2 billion to $3 billion in five to seven years. In FQ3, cloud security growth accelerated and CrowdStrike entered the January quarter with a record pipeline. The number of customers protected in the public cloud rose 45% year over year.
CrowdStrike in FQ3 closed multiple large cloud security deals, including an 8-figure total contract value (TCV) transaction with a new hospitality customer. The deal was part of a broader Microsoft (MSFT) replacement. CrowdStrike closed a 7-figure expansion with a large enterprise SaaS provider that replaced various existing point solutions. In addition, CrowdStrike signed a 7-figure expansion with a major apparel brand that replaced another vendor’s cloud security products.
CrowdStrike sees plenty of potential in identity protection, which could hit $1.5 billion in total ARR in five to seven years. In this segment, CrowdStrike does not compete with Microsoft in identity creation or Okta (OKTA) in identity management. Instead, the company secures the agents, tracking where a specific identity is going in terms of lateral movement. For example, it would flag the identity of a user trying to access files that are outside of normal parameters.
About 80% of security incidents these days involve identity, so it’s clearly a major problem area. In addition to winning new identity accounts, CrowdStrike has a big cross-sell opportunity, as just 9% of its customers have adopted an identity product. In FQ3, CrowdStrike’s identity business experienced a record quarter. There was an 8-figure TCV deal with the federal government and several 7-figure wins in the financial services, CPG and manufacturing verticals.
LogScale, CrowdStrike’s next-gen SIEM business (security analytics), represents another key growth driver. LogScale combines log management and SIEM on the same platform. In FQ3, LogScale surpassed $100 million in total ARR. CrowdStrike estimates that the business can hit $1.5 billion in ARR over the next five to seven years. The company says LogScale’s search speed, data gravity and cost efficiencies all work together to provide a competitive advantage.
CrowdStrike CEO George Kurtz has said that legacy SIEM is starting to feel like the legacy anti-virus market did 10 years ago. While incumbent SIEM vendors are entrenched, their customers have a lot of dissatisfaction because of too much complexity. Organizations are now demanding better, faster and cheaper SIEM offerings that work at cloud scale. CrowdStrike has been seeing a significant increase in the number of organizations looking to upgrade their SIEMs.
In FQ3, CrowdStrike secured a 7-figure expansion win with a major consumer staples company that will use LogScale to ingest data from third parties and correlate security alerts. When it was called in to stop a breach at a financial services firm, CrowdStrike landed a 7-figure new logo SIEM win, replacing incumbent Microsoft. CrowdStrike closed another 7-figure new logo win with a business process outsourcing firm that needed to replace a legacy SIEM.
CrowdStrike’s partner network will be an important contributor to the company’s future growth. Partners bring in new accounts and drive platform adoption. In 2023, more than 60% of all new logo wins were partner-sourced. CrowdStrike is the fastest-growing cybersecurity vendor in the channel (ahead of Microsoft and Palo Alto), according to research firm Canalys.
Sun, 31 Dec 2023 05:39:00 -0600Robert DeFrancescoentext/htmlhttps://www.forbes.com/sites/robertdefrancesco/2023/12/31/crowdstrike-has-multiple-cybersecurity-growth-drivers-in-place-for-2024/1 No-Brainer Cybersecurity Stock You Must Own in 2024
Many investment trends are prevalent in the market, such as artificial intelligence (AI). One that I'm particularly excited about is cybersecurity. Many management teams are aware of the vulnerabilities in their systems and are taking action by deploying cybersecurity software to prevent costly ransomware and other attacks.
Of all the cybersecurity companies, one stands out as the best investment in 2024: CrowdStrike(CRWD0.53%). CrowdStrike is a leader in the endpoint security space, which is useful for all potential clients. It also has other offerings, but a few other factors make it the best cybersecurity stock to own in 2024.
CrowdStrike's products use AI to make it one of the best in the business
CrowdStrike has garnered multiple accolades for its cybersecurity suite, such as being named a leader in endpoint protection by Forrester Research. While this is its flagship product, CrowdStrike has products in many other areas, like cloud security, identity protection, and threat intelligence. Management believes that when all of its product lines are added together, it's about a $100 billion market opportunity. However, it expects this market to expand to $225 billion by 2028.
This dramatic expansion shows how big a trend cybersecurity investing will be over the next five years, and purchasing CrowdStrike shares is a surefire way to get in on this trend.
CrowdStrike is also heavily invested in artificial intelligence, as it uses a branch of AI known as machine learning (ML) to to determine what is and what isn't a threat. This gives it an edge over some competitors in the space and is one of the reasons it's a top cybersecurity company.
CrowdStrike has also been growing rapidly. In Q3 of FY 2024 (ended Oct. 31), its annual recurring revenue rose 35% year over year to $3.15 billion. Its customers also use multiple products, with 63% deploying at least five products and 26% using seven or more.
While it's still growing at an impressive rate, CrowdStrike is also turning the profitability corner, as it posted its first operating profit in company history in Q3. While it was only a $3 million profit on revenue of $786 million (a 0.4% margin), it's the start of something much bigger. CrowdStrike's long-term goal is to post an operating margin of around 30%, although that figure doesn't include stock-based compensation.
Accounting for stock-based compensation is a big deal for CrowdStrike, as it currently eats up about 20% of revenue as an expense. However, stock-based compensation grew only 14% in the quarter compared to revenue growth of 35%, so management is being responsible with its expense growth.
This all adds up to a company that looks like a great investment but must be purchased at the right price for the investment to make sense.
CrowdStrike's stock is far from cheap
Because CrowdStrike isn't fully profitable, we must use alternative measures to value the stock. One is the price-to-sales ratio, which divides a company's market cap by its total sales. At 20 times sales, CrowdStrike is an incredibly pricey stock.
However, much of the hype built into the stock is due to strong expectations and fantastic execution on CrowdStrike's part. In the stock market, you often have to pay up to own best-in-class companies, and CrowdStrike falls into this category.
While many investors wish they could return to the beginning of 2023 and buy CrowdStrike stock at a lower price, that ship has sailed. Instead, the next best thing to do is to buy CrowdStrike stock now. While the stock is undoubtedly expensive, it's a top player in a massive industry. If you commit to holding CrowdStrike stock for at least five years, I think it will be a market-crushing investment.
Sun, 03 Dec 2023 18:00:00 -0600Keithen Druryentext/htmlhttps://www.fool.com/investing/2023/12/04/1-no-brainer-cybersecurity-stock-you-must-own-in-2/Unpacking the Latest Options Trading Trends in CrowdStrike Holdings
Financial giants have made a conspicuous bearish move on CrowdStrike Holdings. Our analysis of options history for CrowdStrike Holdings CRWD revealed 27 unusual trades.
Delving into the details, we found 40% of traders were bullish, while 59% showed bearish tendencies. Out of all the trades we spotted, 11 were puts, with a value of $960,471, and 16 were calls, valued at $19,203,745.
Predicted Price Range
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $120.0 to $300.0 for CrowdStrike Holdings over the last 3 months.
Insights into Volume & Open Interest
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for CrowdStrike Holdings's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of CrowdStrike Holdings's whale trades within a strike price range from $120.0 to $300.0 in the last 30 days.
CrowdStrike Holdings Call and Put Volume: 30-Day Overview
Largest Options Trades Observed:
Total Trade Price
About CrowdStrike Holdings
CrowdStrike is a cloud-based cybersecurity company specializing in next-generation endpoint and cloud workload protection. CrowdStrike's primary offering is its Falcon platform that offers a proverbial single pane of glass for an enterprise to detect and respond to security threats attacking its IT infrastructure. The Texas-based firm was founded in 2011 and went public in 2019.
Present Market Standing of CrowdStrike Holdings
Currently trading with a volume of 1,851,289, the CRWD's price is down by -1.45%, now at $251.63.
RSI readings suggest the stock is currently may be approaching overbought.
Anticipated earnings release is in 63 days.
Professional Analyst Ratings for CrowdStrike Holdings
In the last month, 5 experts released ratings on this stock with an average target price of $290.8.
Maintaining their stance, an analyst from Needham continues to hold a Buy rating for CrowdStrike Holdings, targeting a price of $325.
An analyst from Rosenblatt has decided to maintain their Buy rating on CrowdStrike Holdings, which currently sits at a price target of $315.
Consistent in their evaluation, an analyst from JP Morgan keeps a Overweight rating on CrowdStrike Holdings with a target price of $269.
An analyst from BMO Capital has decided to maintain their Outperform rating on CrowdStrike Holdings, which currently sits at a price target of $270.
Consistent in their evaluation, an analyst from Mizuho keeps a Buy rating on CrowdStrike Holdings with a target price of $275.
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for CrowdStrike Holdings with Benzinga Pro for real-time alerts.
Mon, 01 Jan 2024 21:30:00 -0600entext/htmlhttps://www.benzinga.com/markets/options/24/01/36454905/unpacking-the-latest-options-trading-trends-in-crowdstrike-holdingsCrowdStrike: Too Fast Too Furious
CrowdStrike (NASDAQ:CRWD) reported its 3Q24 results and overall, I continue to be impressed by the company and this remains one of the highest conviction stocks in the portfolio.
I have covered CrowdStrike extensively (which can be found here), having been rating the company a Buy and even bought the company for the barbell portfolio when valuations were attractive.
That said, I would not be recommending to buy at current valuation levels as much has been priced in despite still being constructive about the long-term opportunity for CrowdStrike and the strong exact results. Therefore, I am turning neutral on the grounds of rich valuations.
Despite a challenging macro backdrop, as can be seen below, CrowdStrike beat consensus expectations across growth and profitability metrics.
ARR grew 34.9% to $3,153 million, beating consensus expectations by 54 basis points.
This is the first time CrowdStrike surpassed the $3 billion ARR milestone. With this milestone achieved, CrowdStrike is thefastestand the only pure-play cyber security software vendor in history to achieve this milestone.
In 3Q24, CrowdStrike achieved a record net new ARR of $223 million, reaccelerating to 13% growth, up from the 1H24 negative 9% net new ARR performance, even when compared to a 17% compare from the prior year.
The demand in the quarter was broad-based, across large enterprises and small businesses. The acceleration of net new ARR growth was brought about by new customer acquisition, strong expansion with existing customers and a record quarter with the US federal government. The rising win rate against competitors and an acceleration in its emerging businesses also contributed to this re-acceleration.
In the current environment, the double digit net new ARR growth is very impressive.
Revenues came in at $786 million, beating consensus expectations by 150 basis points, growing 35% from the prior year.
The strong top-line performance was accompanied by cost discipline as the company's profitability reached new records, with record non-GAAP subscription gross margin, record GAAP and non-GAAP operating profitability, and record free cash flow.
Subscription gross margins reached a new record, coming in above 80% for the quarter, as the investments in data center and workload optimization are showing their results.
EBIT came in at $176 million, with EBIT margin of 22.3%. This was 228 basis points ahead of consensus expectations of 20.1%.
Operating expenses in 3Q24 came in at $436 million, up 25% from the prior year, with sales and marketing and R&D expenses growing 23% and 31% respectively.
The operating expenses growth of 25% was smaller than that compared to the revenue growth of 35%, thereby leading to margin expansion in the quarter.
EPS came in at $0.82, beating expectations by 11 percentage points, while FCF to equity came in at $240 million or 30.5% margin, beating consensus expectations by 66 basis points.
As a result, CrowdStrike achieved a free cash flow Rule of 66, up from 63 last quarter.
The company also has a very strong balance sheet, with $3.2 billion in cash position, and in 3Q24, generated $274 million and $239 million in cash flow from operations and free cash flows.
Based on current quarter, management believes that it is on track to reached $10 billion in ARR given its strong setup for 4Q24, a record pipeline and continued widening of the competitive gap between CrowdStrike and competitors.
I have shared this earlier in another article, but to emphasize CrowdStrike's medium-term goals, it expects to reach $10 billion ARR in the next five to seven years, and it expects to reach its target operating model, including subscription gross margins between 82% to 85%, operating margin between 28% to 32%, and free cash flow margin between 34% to 38%, in the next three to five years.
Another thing I will highlight is that while other companies are dialing back on their investments into innovation, CrowdStrike continues to invest aggressively while still meeting its profitability targets. We saw R&D expenses grow 31% in the quarter as evidence that CrowdStrike remains in growth mode and is able to invest aggressively as a result of its competitive position and balance sheet.
CrowdStrike did mention that the macro environment remains challenging, with companies increasing scrutinizing budgets.
While there is strong demand for the Falcon platform and thus a record pipeline, management is not expecting the usual 4Q budget flush.
Thus, management is reiterating its net new ARR assumptions, which assumes that net new ARR for the full year of 2024 to be in-line or modestly up, and that implies a double digit growth in net new ARR growth in the second half of 2024.
CrowdStrike is raising its full year revenue and profitability guidance, with an expectation of revenues between $3,047 million to $3,050 million, growing 36% from the prior year, non-GAAP income from operations between $634 million and $636 million, non-GAAP net income between $715 million and $718 million, and non-GAAP net income per share between $2.95 to $2.96.
In addition, CrowdStrike is maintaining its free cash flow margin of 30% for the full fiscal year of 2024.
The assumption of guidance for net new ARR growth of in-line to modest growth for the full fiscal year of 2024 looks to be conservative given that management is not incorporating any budget flush the final quarter of FY2024.
Key beneficiary of consolidation
As can be seen below, 26%, 42% and 63% of its customers use seven or more, six or more, and five or more modules respectively.
CrowdStrike also mentioned in the 3Q24 earnings call that deals with eight or more modules increased by 78% from the prior year in the quarter, further highlighting that large deals are consolidating with CrowdStrike.
This consolidation by CrowdStrike is contributed by the strong industry recognition and this was also the case in 3Q24. CrowdStrike continues to be ranked amongst the best cybersecurity companies in its segments, as it was one of the highest-rated in Gartner's latest Peer Insights Voice of the Customer for EPP report, it was named a Leader in the Forrester Wave for Endpoint Security, and it was also named as a leader in the IDC Vulnerability Management MarketScape. In MITRE's latest ATT&CK testing CrowdStrike was awarded a perfect 100% across protection, visibility and analytics detections.
CrowdStrike's gross retention rate continued to stay high and its dollar-based net retention rate was slightly below its benchmark in 3Q24. The mix of net new ARR from new customers has continued to be ahead of the company's expectations and the company continues to land larger deals today than before.
Within cloud security, growth accelerated in 3Q24 and the company is entering 4Q24 with a record pipeline. Management shared that there was an eight-figure deal with a new Falcon customer in the hospitality vertical where CrowdStrike was also to replace Microsoft. In another seven-figure deal for cloud security expansion with one of the largest enterprise SaaS providers, CrowdStrike's Falcon Cloud Security replaced multiple existing point products. And within cloud security, there was another seven-figure cloud security expansion with a major apparel brand, where CrowdStrike replaced a firewall hardware vendor's cloud security.
With the number of customers CrowdStrike protecting in the public cloud growing 45% from the prior year, its cloud security solution is quickly replacing other cloud security vendors, and it is one of the largest and fastest-growing cloud security businesses by ARR and customer count.
Within its Identity Threat Protection business, CrowdStrike delivered a record quarter, and highlighted several notable wins.
In particular, management noted that there was an eight-figure deal win with the federal government. The federal government chose Falcon Identity as the identity security solution of choice. There were also multiple seven-figure wins, which are across diverse verticals like financial services, consumer packaged goods and manufacturing, amongst others.
CrowdStrike's LogScale next-gen SIEM business reached a record in 3Q24, exceeding the $100 million ARR milestone. The growth has been fueled by the discontentment with legacy SIEMs, and CrowdStrike's LogScale, which is integrated within the Falcon platform and brings cost efficiencies, search speeds and data gravity that led to significant increase in interest from customers in the offering.
Within LogScale, some of the notable wins include a seven-figure expansion with a major consumer staples company, a second seven-figure deal with a financial services company, where Microsoft was replaced, and lastly, another seven-figure deal with a business process outsourcing firm that replaced a legacy SIEM with CrowdStrike's LogScale.
I think we are seeing good traction in cloud security, identity threat protection, and LogScale. In particular, given that we are seeing CrowdStrike replace multiple leaders and legacy players in the respective segments is very encouraging.
We are starting to see partnerships contribute to CrowdStrike.
In particular, we saw that CrowdStrike commented that they saw a very strong SMB segment this 3Q24 quarter.
The company specifically highlighted partnerships as a key driver for the current quarter's results.
These partnerships include those with Dell, Pax8 and AWS marketplace, all of which represent diversification of go-to-market approaches.
The company highlighted that 62% of its new logo wins were partner-sourced year-to-date. As a result, the partners ecosystem fueled CrowdStrike's go-to-market.
As can be seen below based on consensus data, CrowdStrike is expected to operate at higher FCF margins of 33% compared to the average in the comp group of 20%, grow faster at a CAGR of 29% compared to the average in the comp group of 26% and operate at a rule of 40 of 61 compared to the peer average in the comp group of 43.
Despite all that, it is trading at an EV/S/Growth of 0.45x, in-line or just slightly below the average in the comp group of 0.46x.
I revised my financial forecasts for CrowdStrike higher after this solid print.
To determine the 1-year price target for CrowdStrike, the peer group trades between 35x to 60x EV/FCF and I applied a 40x FY2025 EV/FCF to derive the 1-year price target.
Thus, my 1-year price target for CrowdStrike is $230.
While I would love to buy CrowdStrike today, the valuation of the company is too rich for my liking, hence I am turning neutral on the name. That said, I am a happy buyer on weakness when valuation becomes more attractive and I continue to see CrowdStrike as a long-term winner in the space.
The 3Q24 quarter showed that CrowdStrike is differentiating itself from the rest as it continued to execute well and show strength in a difficult macro environment.
In particular, its win rate amongst competitors continues to impress me as it is winning not just legacy players, but also market leaders like Microsoft.
While the growth is accelerated by increasing consolidation, CrowdStrike is also growing increasingly profitably and cash flow generative. The company is able to have the privilege of investing aggressively in innovation and growth while doing so profitably and operating efficiently.
With the execution management has shown thus far, it is no wonder that the market has very high confidence in the company's ability to reach its medium-term goals.
In an environment like this, CrowdStrike is benefiting from an environment in which others are facing challenges in, and thus therefore likely to continue to generate alpha as it continues to grow its market leadership.
Thu, 21 Dec 2023 18:00:00 -0600entext/htmlhttps://seekingalpha.com/article/4659143-crowdstrike-crwd-stock-too-fast-too-furiouscrowdstrike holdings inc.
Federal Emergency Management Agency Administrator Deanne Criswell purchased up to $50,000 of CrowdStrike Holdings Inc. shares after receiving approval from an ethics watchdog.
House Speaker Nancy Pelosi’s husband, Paul Pelosi, has made over $700,000 of unrealized gains in CrowdStrike stock.
Top senators on the Senate Intelligence Committee introduced bipartisan legislation Thursday that seeks to sanction any nation involved in ransomware attacks against the U.S.
Wed, 15 Nov 2023 02:00:00 -0600en-UStext/htmlhttps://www.foxbusiness.com/quote?stockTicker=CRWDCrowdStrike expected to beat and raise next 2 quarters: WedbushNo result found, try new keyword!CrowdStrike is expected to report non-GAAP earnings per share of 74 cents and revenue of $777.38M for the fiscal third quarter of 2024. Investors have indicated to the bank that they expect sales ...Tue, 28 Nov 2023 01:50:00 -0600en-ustext/htmlhttps://www.msn.com/CrowdStrike leaps after solid Q3 earnings, recurring revenue outlookNo result found, try new keyword!Cybersecurity group CrowdStrike says its on target to reach $10 billion in annual recurring revenues over the next five to seven years. CrowdStrike said current quarter revenues would likely range ...Wed, 29 Nov 2023 00:50:00 -0600text/htmlhttps://www.thestreet.com/investing/stocks/crowdstrike-higher-after-solid-q3-earnings-recurring-revenue-outlookCrowdStrike Holdings, Inc.: CrowdStrike Earnings: On-Target CrowdStrike Posts a Solid Period as We Up Our Long-Term Estimates
CrowdStrike is a cloud-based cybersecurity company specializing in next-generation endpoint and cloud workload protection. CrowdStrike’s primary offering is its Falcon platform that offers a proverbial single pane of glass for an enterprise to detect and respond to security threats attacking its IT infrastructure. The Texas-based firm was founded in 2011 and went public in 2019.
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Thu, 14 Dec 2023 10:00:00 -0600en-UStext/htmlhttps://finance.yahoo.com/research/reports/MS_0P0001HOOZ_AnalystReport_1702684606000