CrowdStrike
Security platforms are sticky in a way that most software is not, because ripping one out means admitting you cannot see your own network. The price is still the problem.
Module attach rates keep climbing, but the sales multiple assumes a decade of thirty-percent growth.
CrowdStrike sells a single agent that watches endpoints, identities and cloud workloads, and then sells more modules onto that same agent. Every additional module raises the switching cost without raising the cost to serve much at all. That is a good business shape.
Against that, the valuation is a promise. When a company trades at a large multiple of sales, the buyer is underwriting management's ability to compound for a decade without a single operational stumble. Security has a habit of producing stumbles — outages, breaches, and platform consolidations happen.
The rest of the CrowdStrike thesis
Includes the risks we think matter, the numbers we check each quarter, and the exact conditions under which we would sell.
Cancel anytime. Your subscription covers the full archive, every new note and the weekly letter.