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Endpoint security player CrowdStrike (Nasdaq: CRWD) continues to consolidate in the industry. After delivering strong second quarter results, the company announced the acquisition of Onum Technologies as it looks to enhance its security information and event management (SIEM) capabilities.
 

CrowdStrike’s Financials

For the second quarter of the year, CrowdStrike’s revenues grew 21% to $1.17 billion, ahead of the Street’s forecast of $1.15 billion. Annual Recurring Revenue (ARR) increased 20% to $4.66 billion. On an adjusted basis, EPS of $0.93 was ahead of the market’s forecast of $0.83 for the quarter.

Subscription revenues grew 20% to $1.10 billion. Professional services for the quarter grew from $45.6 million last year to $66 million.

For the third quarter, CrowdStrike expects revenue of $1.208-$1.218 billion and an adjusted net income per share of $0.93-$0.95. The market was looking for revenues of $1.23 billion and an EPS of $0.90.

The company expects to end the year with revenues of $4.75-$4.81 billion and a net income of $3.60-$3.72 per share. The market was looking for revenues of $4.78 billion and an EPS of $3.50.
 

CrowdStrike’s Onum Technology Acquisition

Earlier this summer, CrowdStrike announced the acquisition of Madrid-based Onum Technology for an estimated $290 million. Onum Technology was founded in 2022 by Pedro Castillo and Lucas Varela to address a growing cybersecurity challenge of the slowing down of threat detection by traditional security tools due to the abundance of telemetry data.

Unlike traditional security platforms that rely mostly on batch processing, Onum’s platform works on real-time, in-pipeline telemetry detection to allow security teams to detect and respond to threats faster. Its real-time pipeline detection analyzes and detects threats or anomalies in data as it is being ingested into a company’s systems. Onum claims that its approach helps accelerate processes up to five times the event rate of its closest competitors, reduces data storage costs by half, and accelerates incident response by up to 70%.  

CrowdStrike will integrate Onum’s technology into Falcon so that it will filter and analyze data before the data reaches Falcon, thus accelerating AI-driven security responses. CrowdStrike hopes to enhance autonomous detection and provide its customers with greater control over security and observability data through the acquisition.

Prior to being acquired, Onum had raised an estimated $42 million in funding from investors including Dawn Capital, Insight Partners, and Kibo Ventures. Its last round of funding was held in March 2024 when it raised $28 million at an undisclosed valuation. Onum did not publish its financial statements. This is the second acquisition by CrowdStrike this year, after it acquired Adaptive Shield for $300 million.

The stock is currently trading at $509.13 with a market capitalization of $127.8 billion. It was trading at a 52-week low of $294.98 in November last year and climbed to a 52-week high of $517.98 in July.

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