CRWD - Crowdstrike - S1 breakdown

Crowdstrike looks very impressive from the upcoming IPOs this year.

Analysis from Alex Clayton :

SNIP…

"CrowdStrike is growing ARR in the triple digits and operating in a massive security market where the trends are moving in their favor?—?legacy antivirus solutions are becoming less effective, the traditional security perimeter is less relevant, the attack surface area is increasing along with the sophistication and the sheer number of breaches.

Enterprises of all sizes need a cloud-first security platform that utilizes AI and can protect any workload, regardless of environment. Moreover, while CrowdStrike still has heavy losses, they have strong net dollar retention and sales efficiency. It’s clear they’re getting leverage in their business model?—?CrowdStrike should be investing to gain market share.

There’s also a great story for them to move outside of security and deeper into IT operations where they have already launched a few products. Some public market investors will likely be nervous about the high losses, but CrowdStrike is in a great position to capitalize?—?they should have a very successful IPO." :

https://medium.com/@alexfclayton/crowdstrike-ipo-s-1-breakdo…

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Impressive S-1

137% subscription growth YoY
103% customer growth
147% expansion rate (2017 was 104%, 2018 was 119%)
98% gross dollar-based churn

2017 Rev: $52.7M
2018 Rev: $118.8M (growth of 125%)
2019 Rev: $249.8M (growth of 110%)

2017 Subscription Rev: $37.9M
2018 Subscription Rev: $92.6M (growth of 144%)
2019 Subscription Rev: $219.4M (growth of 137%)

2017 ARR: $58.8M
2018 ARR: $141.3M (growth of 140%)
2019 ARR: $312.7M (growth of 121%)

2017 Net Loss: ($91.3M)
2018 Net Loss: ($135.5M)(growth of 48%)
2019 Net Loss: ($140.1M)(growth of 3%)

Rated 4.8 stars out of 5 on gartner.com with 269 ratings. 72 of the reviewers are <$50M, 59 are between $50M - $250M, 33 between $250M - $500M, 24 between $500M - $1bn, 22 between $1bn - 3bn, 16 between $3bn - 10bn, 19 between $10bn - 30bn, 7 greater than $30bn, 14 are Government/PS/ED employees. Most everyone likes how easy it is to implement to the product, but criticisms include how frequently it updates and high bandwidth issues. Compared to 52 other Endpoint Protection Platforms, Crowdstrike ranks 2nd in terms of its overall rating.

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The S-1 is impressive. Even more impressive is the free publicity the company garners by solving high visibility hacks. Has ZScaler ever been cited for cracking a particular hack, virus or attack?

Gordon

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