CrowdStrike impresses with first earnings report

CrowdStrike, a cybersecurity business focused on endpoint protection, posted revenues of $96.1 million on GAAP net losses of $26 million in the first quarter of fiscal year 2020, according to the company’s first-ever earnings report released Thursday following its $612 million NASDAQ initial public offering in June.

CrowdStrike closed up 2.5% Thursday following the news, rising in after-hours trading.

The company’s revenue shot up 103% from the same period last year, with subscription revenue increasing 116% increase to $86 million. CrowdStrike’s stock price has continued to rise since the company priced its shares at $35 apiece last month, trading Thursday at nearly $82 per share after-hours.

The security enterprise expects full-year losses of 72 to 70 cents per share on more than $430 million in revenue.

“We are pleased with the strong start to the year,” CrowdStrike chief executive officer and co-founder George Kurtz said in a statement. “As the pioneer of cloud-native endpoint security, CrowdStrike provides the only endpoint protection platform built from the ground up to stop breaches, while reducing security sprawl with its single-agent architecture. Our continued innovation strengthens our category leadership in the Security Cloud and positions us as the fundamental endpoint platform for the future.”

Kurtz began work on Sunnyvale-based CrowdStrike in 2012 after beginning his career as a CPA at Price Waterhouse, writing a book on internet security titled “Hacking Exposed: Network Security Secrets & Solutions,” then launching FoundStone, which sold to McAfee in 2004 in a deal worth $86 million. Kurtz then spent the next seven years as a general manager at McAfee, eventually becoming chief technology officer.

We chatted briefly with the CrowdStrike co-founder and CEO just after he rang the Nasdaq opening bell last month. You can read the full conversation here.

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