Why Is CrowdStrike Stock Down 30% Over The Last 3 Months?

by Trefis Team
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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 ‘step back’ 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? reviews the near term reasons and the big picture.

The context for the last few years:

A closer look At CrowdStrike 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%. This compares with Total Revenues growth of 125% in 2018. We expect Total Revenues growth to be 80% in 2020.

A closer look At CrowdStrike’s Total Expenses 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 of 76% in 2018. We expect Total Expense growth to be 26% in 2020.

How does CrowdStrike’s Revenue Growth compare with rivals?

For more details on how CrowdStrike Revenue Growth compares with rivals, view our interactive dashboard analysis.

How has  CrowdStrike’s  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 on CrowdStrike’s Net Income and EPS, view our interactive dashboard analysis.


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