3 Reasons CrowdStrike Is a Long-Term Buy for 2030 and Beyond

Core Viewpoint - CrowdStrike is positioned as a leading cybersecurity company with significant growth potential despite recent challenges, making it a strong long-term investment opportunity [3]. Group 1: Cybersecurity Market Potential - The cybersecurity market is still in its early stages, with increasing digital connectivity leading to more cyber attack opportunities, thus enhancing the value of cybersecurity solutions [4][5]. - A 2022 McKinsey study estimated the total addressable market for cybersecurity could reach between $1.5 trillion and $2.0 trillion, with only about 10% currently tapped [5]. - CrowdStrike estimates its total addressable market will reach $116 billion by 2025 and could increase to $250 billion by 2029, representing a 116% growth in four years [6]. Group 2: Customer Adoption and Retention - CrowdStrike operates a subscription-based model where customers can purchase individual cybersecurity modules, leading to increased complexity and cost for switching providers [7]. - A significant portion of CrowdStrike's customers are using multiple modules, with 67% using five or more, which enhances customer retention [8][9]. - The company's net retention rate was 112% at the end of fiscal 2025, indicating existing customers spent 12% more than the previous year, despite a decline from 119% earlier in the year [10]. Group 3: Financial Performance - CrowdStrike's annual recurring revenue (ARR) reached $4.42 billion at the end of fiscal 2025, marking a 23% year-over-year increase, with $807 million added in net new ARR [12]. - The company generated $3.95 billion in total revenue, with $3.76 billion from subscriptions, a significant increase from $2.87 billion the previous year [12]. - CrowdStrike secured over 20 deals worth at least $10 million and over 350 deals worth at least $1 million in its latest quarter, showcasing its ability to attract enterprise customers [13].