CrowdStrike CEO is confident in the face of a coming recession
CrowdStrike Holdings Inc (NASDAQ: CRWD) is down more than 30% from its year-to-date high but CEO George Kurtz remains convinced the cybersecurity technology company can withstand the imminent recession.
How is CrowdStrike well-positioned for a recession?
He’s confident since CrowdStrike helps customers consolidate spend that tends to be a priority in times of an economic downturn. This morning on CNBC’s “TechCheck”, the Chief Executive said:
People want to spend more with vendors that can consolidate; where you can take out two, three, four different products. We have over 22 modules today. With our modular format, we can replace other products and consolidate that spend.
Last week, the Austin-headquartered company capitalized on tumbling valuation and bought Reposify Ltd to expand its footprint in the security space.
“CRWD” is profitable on a free cash flow basis.
Interactive intrusion activity is up 50% year-on-year
In August, CrowdStrike said it added 1,660 net new subscribers in its fiscal second quarter as it reported market-beating results and raised its guidance for the future. According to CEO Kurtz:
Security is a board room topic. It’s incredibly important and it’s hard for organisations to scrimp on it. We have a great product, 150% ROI in the first year. We know we’re selling value, and that’s how we’ve been able to grow so quickly.
In a recent report, the Nasdaq-listed firm said hands-on intrusion activity was up nearly 50% on a year-over-year basis.
Wall Street recommends that you invest in this stock as it has upside to $236 on average.
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