What You Should Know About CrowdStrike IPO?

CrowdStrike Holdings Inc. declared the much-awaited initial public offering. The cybersecurity company states that it plans to raise up to $100 million, that figure, however, is more likely to be a placeholder and is subject to change.

Here are 5 things you should know about CrowdStrike:

The Company Ready To Go Public – CrowdStrike IPO

According to MarketWatch, CrwodStrike Chief Executive George Kurtz states that CrowdStrike was in a position that was all set to go public.

The company has raised $481 million since its launch in 2011. Recently, the company acquired $200 million round in June that increased the company’s value at about $3 billion.

Dual-Class Shares – CrowdStrike Shares

CrowdStrike intends to offer Class A and B shares. Class A consists of one vote each. While Class B – which will be given to insiders – will have 10 votes a share.

Losses Remained Controllable While Profit Increased

CrowdStrike disclosed a loss of $140 million on the profit of $249.8 million on the year ended, in comparison to the previous year’s loss of $141.3 million on revenue of $118.6 million.

The drastic jump in the revenue was caused by subscriptions. CrowdStrike reported subscription revenue of $219.4 million for the recent year ended, which is higher than the previous year’s revenue of $92.6 million.

The number of subscribers drastically increased from 1,242 to 2,516 customers.

Tight Competition

CrowdStrike’s greatest asset is its Falcon security platform. The company claims it to be as the first multi-tenant, cloud-native, intelligent security software-as-a-service platform. However, it faces some huge competitors.

Competitors include McAfee Inc. and Symantec Corp., both of which offer traditional antivirus protection. In addition, Carbon Black and Cylance Inc. offer alternative endpoint security services. Palo Alto Networks Inc. and FireEye Inc., on the other hand, are network security providers.

Marketing Expenses Consumed More Than Half Of The Revenue

CrowdStrike disclosed marketing expenses of $53.7 million, which is higher than the revenue of $52.7 it acquired in the same year.

Since 2017, marketing expenses consumed 88% of the company’s revenue in the following year, and then 69% in the most recent year.

Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.