CrowdStrike IPO: Target Share Price, Estimates and Valuation – Will CrowdStrike IPO Become a Success or Underperform?

CrowdStrike is definitely working hard to earn a flattering status of a tech unicorn, which becomes an obvious case based on the progress the cybersecurity company is making with increasing revenue and decreasing losses in oppose to revenue for the past two fiscal years.

At the same time, the company is working out their partner strategy, focusing on MSSP partner strategy. Additionally, CrowdStrike is focusing on growth, evolving and long-term progress in the sector of cybersecurity.

CrowdStrike IPO and Target Share Price

CrowdStrike announced in their official IPO filing submitted to the Securities and Exchange Commission, that the expected target share price for opening the first public sale should be set between 19$ and 23$.

The estimated target share price is based on the valuation of the company compared to the number of shares being issued.

CrowdStrike IPO: Estimates and Valuation

Originally, based on the amount of over 400 million dollars that CrowdStrike raised in total and by far through private funding, the company’s value was estimated at 3 billion dollars.

Afterward, the latest funding round that brought 200 million dollars to the company, moved the estimated value up to over 4 billion dollars. In case that CrowdStrike would open the trade at the high end of its target share price, the company could be valued at 4.59 billion dollars.

CrowdStrike and MSSP Partnership Model

While presenting share price and value estimates through the SEC filing, CrowdStrike also revealed MSSP partnership strategy the company is looking to adopt.

That means that the cybersecurity unicorn should focus on expansion from large enterprises to small businesses that lack security. The company also noted that they have increased sales and marketing for small and medium business over the course of the last few years.

The addressable sector for providing security for small business and smaller enterprise teams is set at an estimated value of 4.4 billion 2019, with a potential to reach 5.1 billion in 2021.

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.