Cybersecurity firm CrowdStrike (NASDAQ: CRWD) had a scintillating initial public offering a month ago when it raised $612 million by floating 18 million shares at $34 apiece. The offer price was higher than the expected range of $28-30.
The stock opened for trade in a highly enthusiastic market, which sent its price soaring 70% by the end of the day. Now it’s time for the company to prove its worth to investors. Read CrowdStrike earnings results now.
When CrowdStrike reports its maiden earnings results after the closing bell on Thursday, analysts on an average expect the company to report revenues of $95.67 million. The Sunnyvale, California-based firm is projected to report a loss of 47 cents per share during this period.
In the coming quarters, the company hopes to cut down on losses by reducing its sales and marketing costs. It has already achieved some success in this regard. The company’s sales and marketing costs as a percent of total revenue declined to 69% in fiscal 2019, from 88% a year ago.
Crowdstrike, founded in 2011, specializes in analyzing user behavior in various devices of a network, and uses this data to identify malicious interferences and cyber threats.
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According to the company, its automated threat detection solution can come up with as many as 2.3 million decisions in a second’s time. It’s software, meanwhile, is claimed to have the capacity to successfully finish over 100 billion jobs in just a day.
It has previously unraveled a few high-profile hack incidents, including tracing the 2016 Democratic National Committee email leak to Russia. It has also revealed the source of 2014 Sony Pictures hack to North Korea, besides helping law enforcement agencies nab the culprits in Chinese espionage on the US.
Wall Street is oddly bullish about this stock and has a Moderate Buy rating. The stock has a 12-month average price target of $77.56, representing an 11% upside from the last close.
Listen to on-demand earnings calls and hear how management responds to analysts’ questions