There is no denying that artificial intelligence (AI) is changing the technology landscape as we know it. This is evident from the number of AI-related technology companies that are among the most valuable companies in the world, as measured by their market capitalization.
Microsoft tops the list and is the only one to boast a market capitalization this exceeds 3,000 billion dollars. He snatched the crown from Applewhich continues to hold on to second place with $2.6 trillion. Nvidiapowered by its benchmark AI processors, has gained 200% over the past year to take third place, with a value of just over $2 trillion. Alphabet, AmazonAnd Metaplatforms — each with strong ties to AI — sports market caps ranging from $1.2 trillion to $1.9 trillion.
With a market cap of less than $73 billion at the time of writing, it may seem like heresy to suggest that Crowd strike (NASDAQ:CRWD) might have a chance in the $1 trillion club. However, the need to defend against AI-powered cybersecurity attacks will only increase from here on out. CrowdStrike’s ever-improving algorithms and cloud-native platform form the foundation of the company’s success, suggesting it’s only a matter of time before it joins this exclusive fraternity.
AI in its DNA
The global average cost of a data breach in 2023 was $4.45 million, according to a report from IBM, and this amount increases every year. With the challenges rising and the vast potential for business disruption, cybersecurity has become one of the most important considerations for any business. This is where CrowdStrike comes in.
The company’s Falcon platform delivers the industry’s most sophisticated threat protection, leveraging advanced AI and machine learning to stop threats in seconds while preventing future attacks. The system is trained on more than 2 trillion threat events per day, and its AI-powered system improves with each encounter. CrowdStrike has expanded beyond its roots in endpoint security, offering a growing suite of products including cloud security, identity security, security information and event management, information on threats, data protection and exposure management services.
The proof is in the pudding, or so the saying goes. For its fourth fiscal quarter 2024 (ended January 31), CrowdStrike’s revenue jumped 33% year-over-year to $637 million, and its diluted earnings per share increased 102%, thanks to its expanding operating margin. At the same time, the company’s annual recurring revenue grew 34%, to $3.44 billion. Additionally, customers are adopting more modules, with those with five, six, or seven modules increasing by 64%, 43%, and 27%, respectively. Agreements signed with eight or more modules more than doubled.
Management expects the company’s robust growth to continue, targeting fiscal 2025 revenue of $3.96 billion at the midpoint of its guidance, representing growth of ‘around 29%. It’s worth noting that CrowdStrike has always provided conservative advice, so it’s real…
