The IPOX® Watch: CrowdStrike Holdings, Inc.
COMPANY DESCRIPTION
CrowdStrike Holdings, Inc. is a cybersecurity technology company based in Austin, Texas, that offers cloud-based security services to protect its clients from cyber threats. The company was founded in 2011 by George Kurtz (CEO), Dmitri Alperovitch, and Gregg Marston, and has grown to become a significant player in the cybersecurity industry.
TECHNOLOGY
CrowdStrike's cloud-native Falcon platform uses machine learning to identify and respond to cyber threats in real-time across an organization's entire IT infrastructure. The company also offers additional services such as threat intelligence and incident response. CrowdStrike has been involved in several high-profile cybersecurity investigations. In 2014, the company uncovered North Korea's involvement in the Sony Pictures hack and identified members of a hacking group known as Putter Panda, a state-sponsored Chinese army unit that takes part in China's campaign to steal trade and military secrets from foreign targets. In 2015, CrowdStrike released information about Chinese hackers targeting U.S. technology and pharmaceutical companies, potentially violating an agreement between the two countries, as well as investigating the 2015-2016 cyberattacks and email leaks involving the Democratic National Committee (DMC).
BUSINESS MODEL
CrowdStrike's primary source of revenue is through subscriptions to its cloud-based security services. Customers pay a recurring fee to access the Falcon platform, which helps them detect, prevent, and respond to cyber threats. The company serves a diverse range of clients, including businesses, government agencies, and other organizations across various sectors. The cybersecurity market is highly competitive, with many companies offering similar services. However, CrowdStrike has differentiated itself through its work on high profile attacks and boasts its ability to protect its clients from increasingly sophisticated cyber attacks, including from state actors.
IPO HISTORY
On June 12, 2019, CrowdStrike went public on the Nasdaq Global Select Market under the ticker symbol "CRWD." The company priced its IPO at $34 per share, raising approximately $612 million by offering 18 million shares of its Class A common stock. The IPO was led by a group of underwriters, including Goldman Sachs, J.P. Morgan, BofA, and Barclays, among others.
The IPO valued CrowdStrike at over $6.6 billion, and the company has since grown to around $80 billion market cap, demonstrating its strong position in the cybersecurity market.
CrowdStrike was included in the IPOX® 100 U.S. Index (ETF: FPX US, FPX LN) on 06/24/2019 and currently weighs ca. 1.38% of the portfolio, gaining +384.43% since inclusion.
