It's been a wonderful 15 months for CrowdStrike Holdings (CRWD +0.74%) shareholders. The company's stock has risen 200% since the beginning of 2023.
But the question remains: Is CrowdStrike still a buy after this incredible rally?
I think it is. Here's why.
The world is teeming with cybercrime
The news is filled with examples of large-scale cyber attacks. The latest catastrophic case is the Feb. 2024 attack on Change Healthcare, which has disrupted claims payments for hundreds of thousands of medical providers.
With so many cybercriminals eager to cause chaos, organizations are having to spend quickly to upgrade their defenses. No one wants to be the next victim of a major attack.
CrowdStrike's revenue is soaring as cyber spending ramps up
Even before the most recent headlines, CrowdStrike had been gaining momentum thanks to its AI-powered cybersecurity modules that help its customers protect their systems, data, and endpoints.
As you can see in the chart below, the company's revenue has skyrocketed from $53 million in fiscal 2017 to over $2.2 billion in fiscal 2023.
Image source: Statista.
What's more, the company grew its top line another 36% in fiscal 2024 to $3.1 billion. The company's subscription-based model seems to be paying off as its customers continue to ramp up their security spending. Indeed, the company reports that over 62% of its customers purchase more than five of its security modules.
Is CrowdStrike a buy now?
As organizations large and small bolster their cybersecurity defenses, industry leaders like CrowdStrike are answering the call. That demand is fueling rapid top line growth for the company, and its margins and profits are also improving.
For investors willing to buy and hold, CrowdStrike remains a stock worth considering.
