Crowdstrike is bucking some of the negative trends affecting peers, says Wells Fargo's Nowinski

Joining us this morning is Wells is Wells Fargo's Andrew Nowinski. Andrew, it's great to have you, I guess help viewers understand what does set it apart from some of the carnage that we saw, especially last week. Yeah, Thanks, Carl and Sarah, it's great to see you both again. Thanks for having me on. So Carl Strike, you know if you look back over the last quarter of results that we've seen some of the common headwinds that we saw, Crowdstrike is bucking those trends. They're they're not a consumption based model that's dependent on cloud cost optimization trends ending. They certainly use Gen. AI and all their products, but they're not dependent on organizations training LLMS and using them for inference purposes. And then finally, you know they do have a very comprehensive platform, but every one of the components of their platform is best of breed. You have other vendors in the market that are pitching this platform play, but they at the, the components aren't best of breed and they're not even growing in some cases. So we think Crowdstrike is really seeing an inflection in demand as more organizations will likely follow the lead of Amazon and standardize their infrastructure on on Crowdstrike if they truly want to stop regions. Are they a share gainer at this point? And if so, who are the donors? There's certainly a share gainer, Carl. So they're, they're gaining share across a lot of different segments, certainly in in the just core endpoint market, which is about 80% of their ARR. They're gaining share from all the legacy vendors, every vendor out there for that matter. And there's still at least 50% of the installed base that's, that's running a legacy solution. But they're also gaining share in cloud, which is one of the highest growth segments in the market. It's about 400 million in ARR for them right now, growing almost 100%. You have them gaining share. They just launched products in the identity space and that's, that's, that's a very important sector right now. It's about 300 million ARR for them. And if you look back at the two biggest breaches we've just seen, Snowflake and Change Healthcare, both have similarities in that they were not not enforcing multi factor authentication. Now Crowdstrike doesn't provide multi factor authentication, authentication capabilities, but they certainly prevent identities from being abused and then prevent that lateral movement of identity. So that's another area that we think they're gaining sharing. And then finally SIM big, big area. They just launched on next Gen. SIM at the RSA conference. And so I think those are three big areas for them on the non endpoint side that they're gaining share in. What about AI? You know, when we talked to the CEOs of these companies, Crowd Strike or Palo Alto or Sentinel one we had on the show on Friday and they they they want to talk about AI and securing AI and how that's a big opportunity. I'm not. Is the market convinced though that that these are ways to play the very rapid huge adoption in AI? Yeah, sure, Sarah. I mean it, it is an AI plate cross strikes. Been using AI and machine learning since day one when they launched the product. AI is embedded into every one of their modules. Now. They did just launch a very specific Jenny I solution called Charlotte AI, which they're charging for. That's basically a virtual security operations center assistant that can lower tasks that take, you know, 10 hours down to 10 minutes. So they do have a direct Jenny I play with this Charlotte AI assistant. But like I said, they've been using AI to find that needle in the haystack. And that's how they find and and can stop breaches is by parsing through trillions of data points on a daily basis using machine learning and Jedi. So it's a very good way to play the Jedi space. You don't have to wait for, like I said, organizations to move from training LMS to inference that that doesn't impact their business at all.