Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Cloud

6/12/2019
02:30 PM
Connect Directly
Twitter
LinkedIn
Google+
RSS
E-Mail
50%
50%

CrowdStrike Prices IPO Above Range at $34

The endpoint security firm raised $612 million ahead of today's public debut.

CrowdStrike today marked its first day of public trading, opening at $63.50 after pricing its IPO at $34 per share and exceeding the expected range of $28 to $30 per share, analysts report.

The cloud-based endpoint security firm, operating on the Nasdaq under the symbol "CRWD," raised $612 million ahead of its debut with its initial public offering of 18 million Class A shares priced at $34 each. If it had stuck with the high end of its original range, CrowdStrike would have raised more than $600 million, according to its preliminary prospectus.

According to Bloomberg, shares rose as much as 97% from their initial price to hit $67, and stock was up 83% before noon – putting CrowdStrike at a valuation of about $12.2 billion.

The company was founded in 2011 by chief executive George Kurtz and chief technology officer Dmitri Alperovich, who wanted to address the inefficiencies of legacy security tools on the market. It most recently completed its Series E and has raised a total of $481 million in funding. CrowdStrike was valued at $3 billion in its last private funding round of $200 million last June.

When it was founded, relying on the cloud was risky, Kurtz notes. "Betting big on the cloud – widely considered risky at the time – allows us to ensure a rapid and seamless delivery of innovation and new features to always stay a step ahead of emerging threats," he said in a statement.

Revenue has been ramping up at CrowdStrike, which reported $249.8 million in revenue in the 2019 fiscal year ending January 31, with a net loss of $140.1 million. That's up from $118.8 million in reveneue and a net loss of $135.5 million during the same period a year prior. Customers include 44 of the Fortune 100 companies and nine of the top 20 major banks, CrowdStrike says.

Lead underwriters on CrowdStrike's offering include Goldman Sachs, J.P. Morgan, Bank of America Merrill Lynch, and Barclays.

Hank Thomas, CEO of Strategic Cyber Ventures, has been excited about CrowdStrike's IPO "since before they announced it," he says.

"CrowdStrike proved to me they were the best in the business years ago when they became the gold standard for incident response for mega breaches," he explains. Its threat intel, talent, and marketing have made them stand out, he added. There will only be a few major players emerging in cybersecurity, Thomas predicts; CrowdStrike will be one of them.

The offering is expected to close on Friday, subject to customary closing conditions.

But what's coming next for cybersecurity IPOs this year? Now that "the ice has been broken," as Thomas explains, he anticipates more. "The market and timing [are] right, and with rumors of a looming recession there [is] increased pressure to go public now." In addition to more IPOs, Thomas predict we'll continue to see cybersecurity acquisition news throughout 2019.

Related Content:

Kelly Sheridan is the Staff Editor at Dark Reading, where she focuses on cybersecurity news and analysis. She is a business technology journalist who previously reported for InformationWeek, where she covered Microsoft, and Insurance & Technology, where she covered financial ... View Full Bio

Comment  | 
Print  | 
More Insights
Comments
Threaded  |  Newest First  |  Oldest First
10 Ways to Keep a Rogue RasPi From Wrecking Your Network
Curtis Franklin Jr., Senior Editor at Dark Reading,  7/10/2019
The Security of Cloud Applications
Hillel Solow, CTO and Co-founder, Protego,  7/11/2019
Where Businesses Waste Endpoint Security Budgets
Kelly Sheridan, Staff Editor, Dark Reading,  7/15/2019
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Write a Caption, Win a Starbucks Card! Click Here
Latest Comment: "Jim, stop pretending you're drowning in tickets."
Current Issue
Building and Managing an IT Security Operations Program
As cyber threats grow, many organizations are building security operations centers (SOCs) to improve their defenses. In this Tech Digest you will learn tips on how to get the most out of a SOC in your organization - and what to do if you can't afford to build one.
Flash Poll
The State of IT Operations and Cybersecurity Operations
The State of IT Operations and Cybersecurity Operations
Your enterprise's cyber risk may depend upon the relationship between the IT team and the security team. Heres some insight on what's working and what isn't in the data center.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2019-13623
PUBLISHED: 2019-07-17
In NSA Ghidra through 9.0.4, path traversal can occur in RestoreTask.java (from the package ghidra.app.plugin.core.archive) via an archive with an executable file that has an initial ../ in its filename. This allows attackers to overwrite arbitrary files in scenarios where an intermediate analysis r...
CVE-2019-13624
PUBLISHED: 2019-07-17
In ONOS 1.15.0, apps/yang/web/src/main/java/org/onosproject/yang/web/YangWebResource.java mishandles backquote characters within strings that can be used in a shell command.
CVE-2019-13625
PUBLISHED: 2019-07-17
NSA Ghidra before 9.0.1 allows XXE when a project is opened or restored, or a tool is imported, as demonstrated by a project.prp file.
CVE-2019-3571
PUBLISHED: 2019-07-16
An input validation issue affected WhatsApp Desktop versions prior to 0.3.3793 which allows malicious clients to send files to users that would be displayed with a wrong extension.
CVE-2019-6160
PUBLISHED: 2019-07-16
A vulnerability in various versions of Iomega and LenovoEMC NAS products could allow an unauthenticated user to access files on NAS shares via the API.