Core Insights - CrowdStrike's stock has increased nearly 300% over the past five years, driven by its first-mover advantage in cloud-native cybersecurity, sticky subscription model, and high growth rates [1][2] Business Model - CrowdStrike offers its Falcon endpoint security platform as a cloud-native service, which is more cost-effective and scalable compared to traditional on-site solutions [3] - The company provides new customers with a starter pack of four modules, encouraging them to purchase additional modules as their needs grow, resulting in an increase from 33% to 67% of customers adopting at least five modules from fiscal 2020 to fiscal 2025 [4] Financial Performance - From fiscal 2020 to fiscal 2025, CrowdStrike's annual revenue grew at a compound annual rate of 52%, with adjusted gross margin expanding from 75% to 80% [6] - Revenue growth rates have decelerated, with annual revenue growth dropping from 82% in fiscal 2021 to an expected 29% in fiscal 2025 [8] Market Challenges - The company faces challenges in securing new contracts amid market saturation and increasing competition, which has led to a slowdown in annual recurring revenue growth [7][9] - As the business matures, CrowdStrike will need to focus on upselling existing customers to maintain revenue growth [9] Future Outlook - Analysts project revenue and non-GAAP EPS growth rates of 22% and 17%, respectively, from fiscal 2025 to fiscal 2028, with expectations of GAAP profitability by fiscal 2027 [10][11] - The company has significant growth potential in international markets, as only 32% of its revenue came from international customers in fiscal 2024 and fiscal 2025 [11] Valuation Concerns - CrowdStrike's stock is currently valued at 114 times next year's expected adjusted EPS and 23 times next year's expected sales, which may limit upside potential [12] - If the company meets analysts' expectations but trades at a more reasonable valuation, its market cap could decline by 7% to $123 billion over the next five years [13][14]