Can a 109% increase in Crowdstrike turn it into a successful IPO? - HailNewsUp.com: provides the latest news from India and the world

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Wednesday, June 12, 2019

Can a 109% increase in Crowdstrike turn it into a successful IPO?

Can a 109% increase in Crowdstrike turn it into a successful IPO
If there is any logic in today's IPO market, then this is: Increasing the upper three digit line stimulates the appetite of investors and increases the evaluation.

The opposite of this proposal is also true: For the slow growth in the evaluation of an IPO candidate (think that Uber got sunk after being public in May and now its IPO trades slightly above the price).

Another point: OPI investors do not care whether a company is making a profit if it is growing very fast, for example, in the north of 100%.

And investing in such companies is risky, so I would prefer a profitable and fast-growing company like Zoom Communications instead of a profit.

According to The Wall, this IPO of Cloud Streak, cloud protection provider, providing cloud protection, claiming fame, "Cloud Streak" IPO violates the Democratic National Committee's technique during the 2016 presidential campaign. Street Journal


(The prices mentioned are not my financial interest).

Crowdstrick's financial implications in June 2018 increased its valuation from $ 3 billion to $ 200 million, which, according to the journal, increased its total private equity to $ 481 million to $ 6.8 billion today.

These results produce three-digit revenue growth and huge losses. According to its prospect, revenue for the year ending in January 2019 increased by 109% to $ 249.8 million, which was a recession compared to 125% growth in the previous year, while its net loss increased from $ 5 million to $ 140.1 million.

However, if you read my new book Scaling Your Start, then the story of Crowdstrike is familiar. As I wrote in July last, Crowdstrick's success is due to George Kurtz, a CEO, whose leadership in the cyberspace industry helped his company to take an initiative in the highly crowded market of 35,000 million dollars for endpoint security.

As we saw with the successful zoom IPO, its shares increased by 53% since April 2019, just because a market is saturated does not mean that a new participant will fail, but it increases the level of success. More specifically, in order to win in such markets, your product should be much better for customers than competitors.

Crowdstrike, whose cloud-based service uses AI-based threat prevention and indicator-of-attack (IOA) to stop known and unknown threats in real-time, appears to end the competition.

It helps that its CEO, George Kurtz, had previous success in his training. As I mentioned in the July 2019 interview,

I started at Price Waterhouse as a public accountant and wrote the best-selling book on Internet Security, 'Hacking Exposed: Network Security Secrets and Solutions'. I started the Foundation at the end of 1999 and sold it in 2004 for McAfee ($ 86 million). I was General Manager for McAfee's seven years and was asked to become a Technology Director three times, which I finally accepted. In 2011, I created a team to launch Crowdstrike with the intention of providing endpoint security through the cloud.

The company has grown since then. "We had two co-founders and 12 members in the launch team in 2011, we started generating revenue in 2013, and now we have 1,200 people, we have $ 100 million in revenue required to go public And we are enjoying triple "points development. For example, we publish an increase of 167% in subscription subscribers; An increase of 172% in the value of annual subscription reserves; And an annual recurring revenue increase of 140%, "he said.

Why is Crowdstrick giving customers the benefit? It aims to have a market value of $ 35 billion (endpoint security, forensics, device control and other) by 2020.

How is it According to the Gartner Magic Quadrant of January 2018 for the Endpoint Protection Platform (EPP), Crowdstrike was rated "the highest in performance capability and the highest reduction in vision in the visual quadrant".

And in March 2019, Gartner Peer Insights gave Crowdstrike the highest rating (4.9 / 5) based on 180 customer comments in six major categories. Crowdstrike said he was "excited to report that [company] was the best-qualified provider in all categories."