Developers of cloud technologies and cyber security systems are now in great demand not only from IT companies, but also from most progressive investors. Today we will consider one company from this sphere, which in a few days for the first time will launch its shares on the market.
CrowdStrike, Inc. American company specializing in cyber security cloud technologies. Based in Sunnyvale, California (better known as Silicon Valley), it is a subsidiary of CrowdStrike Holdings, Inc. The company’s flagship product is Falcon Platform, which includes 10 cloud modules and covers several major cybersecurity markets.
The company provides cybersecurity services, threat analysis and incident response to customers in more than 170 countries. CrowdStrike participated in countering several high-profile cyber attacks, including hacking Sony Pictures, e-mail leak of the National Committee of the Democratic Party of 2016 and cyber attacks on the National Committee of the Democratic Party.
In anticipation of this IPO, we collected information on the financial position of the company and its potential capitalization. At the moment, CrowdStrike shows excellent growth rates: total revenue increased from $ 53 million in 2017 to $ 250 million in the 2019 fiscal year, which represents an average annual growth of more than 110%.
As of January 2019, the company had 2,516 corporate clients worldwide, including 44 Fortune 100 companies and 9 of the top 20 banks.
Crowdstrike demonstrates impressive operational and financial performance, and also has a large potential market for cybersecurity services. Growth in quarterly revenue year-on-year is 108%, and customer retention rate is 147% higher than most companies in the industry.
Crowdstrike’s projected market capitalization after the IPO will be $ 11 billion. If the company is located at the upper limit of the $ 23 price range, a fully diluted IPO capitalization will be about $ 5 billion. In this case, the expected return on investment will be + 120%.