Crowdstrike, a prominent security vendor is all set for its IPO, joining the ranks of tech companies with high valuations, being listed on stock exchanges. Although Crowdstrike suffered a $140M loss during the previous year ending on January 31, revenue had doubled to almost $250M, as per the prospectus of the company. Subscriptions were sold to around 2500 companies, which accounted for a significant majority of its sales.
Using cloud-based tech, Crowdstrike aims to preempt breaches by tracking server computer, desktops and similar devices and their activities. Analysis occurs via cloud, allowing better data to the company to face increasing threats. Telstra, AWS, Credit Suisse and Tribune Media are among its customers.
As organizations increase connected devices, cloud adoption policies and workforce mobility, they are getting distributed, as per the company’s prospectus. Salesforce is a significant chunk of Crowdstrike’s spending budget, like other similar businesses. S&M costs increased 66% to around $173M. Fal Con conference, marketing events and employee expenses were a significant part of it.
Zoom and PagerDuty are two other companies in this enterprise software sector with an IPO this year. While they have zoomed ahead, Lyft and Uber have fallen. Mobile chat application Slack, is also likely to issue an IPO next. With a valuation of $3B, Crowdstrike competes against Symantec and McAfee, Fire Eye, Carbon Black and Cylance. One customer was responsible for around 15% of the company’s business last year.
Crowdstrike also entered into a partnership with PC manufacturer Dell, which allows Falcon integration with Dell hardware. SecureWorks Corp and Dell have also agreed for Falcon to be marketed as their favored security system, through their sales organizations. Accel, Warburg Pincus, Alphabet’s CapitalG own 20%, 30% and 11% of the company respectively. The company was launched in 2011 with its security product releasing 2 years later, and is based out of California.
CRWD will be its ticker symbol at NASDAQ. Crowdstrike is attempting to increase at least $100M in its IPO. Barclays, Merrill Lynch, BOA, JP Morgan and Goldman Sachs are handling the deal.