CrowdStrike Poised for More Market-Beating Growth in 2024

Sujeet Kushwaha

CrowdStrike established itself as a cybersecurity leader in 2023, pioneering new threat research and solutions. With strong execution, the company is set up for another year of robust growth in 2024.

CRWD stock has already soared 147% year-to-date as of December 2023. But multiple catalysts suggest CrowdStrike can continue generating market-beating returns for investors in 2024.

Groundbreaking Threat Research

CrowdStrike further cemented its reputation for cutting-edge cybersecurity research in 2023. Discoveries like the Dero cryptomining campaign targeting Kubernetes demonstrated the company’s ability to uncover emerging attack techniques before competitors.

Heading into 2024, CrowdStrike plans to expand its threat hunting and research capabilities. The company is growing its global intelligence team to improve monitoring of threat actors across geographies including China.

With cybercriminals rapidly evolving tactics, CrowdStrike’s threat research leadership provides an edge in keeping clients protected. Expect more high-profile discoveries in 2024 highlighting unseen attack vectors before they become widespread threats.

Innovative New Product Capabilities

Beyond research, CrowdStrike excels at rapidly translating insights into enhanced product capabilities addressing new security gaps.

In 2023, the company introduced numerous new features to bolster ransomware protection as these attacks surged. For 2024, CrowdStrike has a robust product roadmap planned including:

  • Enhancing identity protection and zero trust access capabilities to prevent breach propagation.
  • Expanding managed threat hunting services to identify and remediate sophisticated attacker activity.
  • Strengthening cloud security tools to lock down cloud infrastructure as adoption accelerates.

CrowdStrike’s ability to quickly roll out new features addressing emerging use cases gives them an edge with enterprises. Customers can rely on the Falcon platform to continuously evolve, keeping their organizations covered as the threat landscape changes.

Strong Growth Momentum

Thanks to its innovative capabilities and effective sales execution, CrowdStrike enters 2024 with tremendous growth momentum across key metrics:

  • 174% 3-year revenue CAGR from 2020 to 2023, reaching $1.3 billion.
  • 124% 3-year subscription revenue CAGR, hitting $1.34 billion.
  • 113% increase in subscription customers to 19,686.
  • 97% dollar-based net retention rate.

These impressive growth figures position CrowdStrike well for continued expansion in 2024. The company is efficiently landing new enterprise customers and expanding within existing accounts.

CrowdStrike expects to hire aggressively in 2024, boosting headcount across sales, marketing, engineering and operations. This should provide capacity to capitalize on their large market opportunity.

Attractive Market Tailwinds

Several factors point to CrowdStrike enjoying strong tailwinds throughout 2024:

  • Worsening cybercrime epidemic with attacks becoming more frequent and sophisticated.
  • Ongoing digital transformation driving cloud adoption and remote work, expanding CrowdStrike’s addressable market.
  • Favorable regulatory environment with new cybersecurity laws boosting security demand.

These dynamics create an ideal backdrop for CrowdStrike to continue gaining share in the $126 billion cybersecurity market. The company is well positioned with the right product mix to capture this growth opportunity.

Wall Street Confidence Growing

Bolstered by CrowdStrike’s standout performance and bright outlook, Wall Street analysts have turned increasingly bullish on CRWD stock heading into 2024:

  • Consensus price target of $218 implies 16% upside from current levels.
  • 100% of analysts rate CRWD a Buy.
  • Analysts forecast 27% revenue growth and 33% EPS growth for FY2024, showcasing operating leverage.

With CrowdStrike firing on all cylinders, analysts are confident this cybersecurity leader still has room to run higher in 2024. The stock maintains promising upside even after its 145% surge this year.

Bottom Line for Investors

Given CrowdStrike’s continued innovation, strong execution, massive market potential and Wall Street optimism, the stock appears primed for another standout year in 2024.

Investors looking for exposure to a best-in-class cybersecurity vendor with durable growth prospects should have CRWD on their radars. The outlook remains compelling heading into the new year.

CrowdStrike’s cloud-native Falcon platform is winning over enterprises faced with unprecedented cyberattacks and digital transformation imperatives.

With threats multiplying rapidly, the necessity of CrowdStrike’s solutions will only increase in 2024. Expect this cybersecurity pioneer to continue delivering upside and market-beating returns for shareholders over the next year and beyond.

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Leveraging his government experience, Sujeet brings valuable insight on the stock market to readers. His passion for analysis drives coverage of equities and the latest financial news. When he's not busy dissecting stocks, Sujeet enjoys learning about new businesses and industries.
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