CrowdStrike earnings and the never ending growth in cyber security CrowdStrike earnings and the never ending growth in cyber security CrowdStrike earnings and the never ending growth in cyber security

CrowdStrike earnings and the never ending growth in cyber security

Equities 5 minutes to read
Peter Garnry

Head of Equity Strategy

Summary:  The cyber security industry has been the second best performing theme in equity markets this year driven by strong demand and higher profitability. CrowdStrike reports earnings today with analysts remaining bullish expecting revenue growth of 34% and new record on free cash flow. A better than expected earnings result from CrowdStrike tonight could lift the entire industry in tomorrow's trading session. We remain positive on the industry expecting revenue growth to remain well above 15% annualised in the coming years and we expect consolidation to accelerate in the coming years improving profitability in the industry even further.

CrowdStrike is well positioned for growth

CrowdStrike is the fifth largest cyber security company in the world measured on revenue and reports FY24 Q3 (ending 31 October) earnings tonight after the US market close. Analysts remain bullish on the company with revenue growth expected at 34% y/y and EBITDA rising to $184mn from a loss of $31mn a year ago. The company is also expected to deliver a new all-time high on free cash flow underscoring that the company has hit an inflection point in terms of profitability which has been rewarded by the market with the share price up 99.5% this year.

CrowdStrike is the category leader in what is called corporate endpoint security which have served them well with their Falcon Platform. CrowdStrike has delivered 37% annualised revenue growth since Q1 2018. One risk for CrowdStrike is their lack of SASE exposure which is this new delivery model in cyber security – see the explainer below for the difference in traditional cyber security and the new SASE model where companies such as Zscaler and Palo Alto Networks (the largest cyber security firm on revenue) are dominating.

CrowdStrike share price | Source: Saxo
Source: CrowdStrike

Higher growth for longer and consolidation

The cyber security industry continues to be one of our favourite themes and it is also the second best performing theme basket this year up 38%. Revenue growth among the stocks in our cyber security basket is 24% over the past year which is impressive given the slowing economy hit to consumption due to high inflation. It shows that cyber security growth has little correlation to the overall economy and has become a necessity for companies and governments. The increase in cyber security attacks and the extended damage if breached drive the demand for cyber security products and services. Another feature of the industry is that it is still fragmented and the consensus believes that there will be a bigger consolidation over the coming decades benefitting the largest players in the industry.
Source: Fortinet

Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (
- Analysis Disclaimer (
- Notification on Non-Independent Investment Research (

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000

Contact Saxo

Select region


The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.