CrowdStrike

7.02 (13.31%)

NASDAQ:CRWD | Last traded on 11-15-2019 4:00 PM

Market Reaction

Offer Price

$30

Today Open Price

$53.00

Change Since IPO

Market Cap

$13.5B

Day High

$59.99

Day Low

$53.00

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Featured Analysis

This IPO is an interesting one. Here is what I like: 1) I like that, even though the company is losing a lot of money, its cash flow from operations is negative but proportionally improving as sales expand. This may bode well for the next couple of years. 2) The company is operating in an industry that is likely to continue to expand rapidly. I can't see this market going away; rather it will grow a lot. The company is on trend. Here is what I don't like: 1) The price.

Company Data

Location

Sunnyvale, CA

Valuation

$621M

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Founded

2011

Total Shares Offered

20,700,000

-

Employees

1662

IPO Date

2019-06-12

Background Information

CrowdStrike is a California-based cyber security technology company that provides endpoint security, threat intelligence, and cyber attack response services. Founded in 2011 by former McAfee CTO George Kurtz, CrowdStrike has been involved in the investigation of a number of high-profile cyber attacks, including the Sony Pictures hack and the 2016 DNC email leak.

Financial Analysis

Years 2016 2017 2018
Revenue growth -- 125% 110%
Net profit margin -173%-114%-56%
Valuation -- -- $5.8B
Revenue multiple -- -- 23x
Profit multiple -----41x

Financial Information

Income Statement ($M) 20162017 2018
Revenue53119250
Cost of goods sold345487
Gross profit1964163
Total operating expense109196299
EBIT(91)(131)(137)
Pretax profit(91)(135)(139)
Net income(91)(135)(140)
Balance Sheet ($M) 20162017 2018
Total current assets154331
Cash and cash equivalents6388
Total assets218433
Total current liabilities166281
Total liabilities236363
Total shareholder equity369488
Total liabilities and equity218433
Cash Flow Statement ($M) 201620172018
Net cash from operating activities(52) (59)(23)
Net cash from investing activities(12) (28)(142)
Net cash from financing activities17 127190
Net increase in cash and cash equivalents(46) 4025