CrowdStrike will seek to raise $100 million in an IPO (initial public offering) that may arrive in June 2019, according to an SEC filing from the endpoint security software provider.
Updated May 30, 2019: CrowdStrike IPO targets on stock price, raise and valuation are now updated here.
The company is valued at more than $3 billion, and its stock symbol is expected to be CRWD.
The filing emphasizes managed security services as a key growth area for the business, and channel partners as the core route to market. The filing said:
"We have a channel-centric go-to-market approach. We sell our platform and cloud modules directly and through channel partners, who work closely with our field sales and inside sales professionals. We primarily sell our platform and cloud modules through our direct sales team that leverages our network of channel partners to maximize effectiveness and scale. We amplify our sales presence by leveraging our technology alliance partners that can deliver, embed, or build applications with data and analytics from our Falcon platform. We are also enhancing our go-to-market strategy using a low-touch, trial-to-pay approach. In May 2018, we launched a free trial of Falcon Prevent, our next-generation antivirus module, available directly from our website or the AWS Marketplace. We are beginning to see a number of these trial users convert to paying customers. We believe this approach will enable a higher velocity of new customer acquisition and expansion, and will extend our reach to customers of all sizes."
CrowdStrike IPO Filing: Annual Revenues and Net Losses
No doubt, CrowdStrike is growing rapidly while traditional anti-virus software companies like Symantec and McAfee struggle to lift revenues. But CrowdStrike has also run up big net losses as a privately held, venture-backed startup.
Total annual revenue was:
- $249.8 million for the fiscal year ended January 31, 2019 vs.
- $188.7 million in 2018; and
- $52.7 million in 2017.
Impressive growth. But But the company's annual net losses also have grown -- including a:
- $140.1 million net loss in 2019
- $135.5 million net loss in 2018
- $91.3 million net loss in 2017
In a warning to potential investors, CrowdStrike "cannot predict when or whether we will reach or maintain profitability," the filing said.
Still, the company sees growth opportunities across five focus areas -- including:
- Corporate Endpoint Security
- Threat Intelligence
- Security and Vulnerability Management
- IT Service Management Software
- Managed Security Services
Endpoint Security Market: Crowded, Growing
Customers and partners certainly are seeking cybersecurity solutions that solve modern problems like ransomware. But the market also is crowded with a range of fast-growth players -- including BlackBerry Cylance, Carbon Black, Cybereason, and SentinelOne.
Both BlackBerry Cylance and SentinelOne, in particular, have growing relationships with MSP-friendly technology companies.
