Motley Fool Hidden Gems Investing - Cybersecurity Soars, Cyclical Stocks Cycle

Starting point is 00:00:00 When WestJet first took flight in 1996, the vibes were a bit different. People thought denim on denim was peak fashion, inline skates were everywhere, and two out of three women rocked the Rachel. While those things stayed in the 90s, one thing that hasn't is that fuzzy feeling you get when WestJet welcomes you on board. Here's to WestJetting since 96. Travel back in time with us and actually travel with us at westjet.com slash 30 years. Just when you thought price hikes were over, they bring them back in.

Starting point is 00:00:33 This week's Motley Fool Money Radio Show starts now. Everybody needs money. That's why they call it money. From Fool Global Headquarters, this is Motley Fool Money. It's the Motley Fool Money radio show. I'm Dylan Lewis. Joining me over the airwaves, Motley Fool senior analysts, Bill Mann and Jason Moser. Fool, it's great to have you both here. Addy. Hey, fellas, how you doing? We've got a look at the latest DOJ antitrust case, the story of why some investors are trying

Starting point is 00:01:20 to start their own stock exchange, and of course, stocks on our radar. But we're picking up today with the earnings beat. We have some fresh numbers out from Fool stocks, including CrowdStrike. We'll start there. Shares up 10% this week following earnings. The company came in ahead of expectations, bringing the stock right near all-time highs. Jason, you dove into the report. What did you see? Yeah, tell me if you've heard this before. CrowdStrike just reported another very strong quarter. I mean, listen, if they're spending fatigue in this industry, it surely doesn't seem to be showing up in CrowdStrike's results. The stock is feeling the love. It's up 120% just over the last year alone as they continue to pick up share. And when you look

Starting point is 00:02:01 at these numbers, it makes a lot of sense as to why. Total revenue is up 33% from a year ago to $921 million. Non-gap earnings per share up 63% from a year ago. And then the annual recurring revenue, what they refer to as ARR in the release, $212 million. That was the net new ARR. That was up 22% from a year ago. It ended the year with ARR of $3.65 billion. That's up 33% from a year ago. Really, the encouraging thing is management, they believe they're firmly on their path, as they say, to $10 billion in ending ARR. You can see there's still a lot of potential runway there. And the interesting thing about CrowdStrike, they talk about these modules that make up this Falcon platform. And subscription customers with five, six, and seven or more

Starting point is 00:02:57 modules grew to 65%, 44%, and 28% of subscription customers, respectively. So a lot of growth there. And even more encouraging, deals with eight-plus modules grew 95% from a year ago. And so all things considered, it really does feel like this is a business that's just firmly on track to dominating the cybersecurity space here. There's a term for what Jason has described, a financial term, and it's called bazonkers. Those are crazy numbers. And one of the really interesting things about CrowdStrike is that it's gone from being a free cash flow negative

Motley Fool Hidden Gems Investing - Cybersecurity Soars, Cyclical Stocks Cycle

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