According to a report by Markets and Markets, the global endpoint security industry is estimated to grow at a CAGR of 9.92% from $11.8 billion in 2018 to $19.69 billion by 2024. CrowdStrike (Nasdaq: CRWD) is an endpoint security player that went public last month. Last week, it reported results of an impressive first quarter.

CrowdStrike’s Financials

During the first quarter, CrowdStrike reported revenue of $96.1 million, up an impressive 103% and beating analyst estimates of $95.6 million. GAAP net loss was $26 million or $0.55 per share. Non-GAAP net loss was $22.1 million or $0.47 per share, in line with analyst estimates. Cash, cash equivalents and marketable securities were $175.1 million as of April 30, 2019.

Subscription revenue was up 116% to $86 million. It added 543 net new subscription customers in the quarter to reach a total of 3,059 subscription customers. 

For the current quarter, CrowdStrike expects revenue of $103-$104 million and non-GAAP net loss per share of $0.24 -$0.23. Analysts expect loss of $0.31 per share on revenue of $96.7 million. For the full year, it expects loss of $0.72 to $0.70 per share on revenue of $430.2-$436.4 million. Analysts expect loss of $0.75 per share on revenue of $436.7 million for the year. Its revenue in fiscal 2019 was up 110% to $249.8 million.

CrowdStrike’s Offerings

Irvine, California-based CrowdStrike was founded in 2011 by Gregg Marston, George Kurtz, and Dmitri Alperovitch to reinvent security for the cloud era. Its flagship platform Falcon offers its customers the ability to detect and prevent never-before-seen attacks while they are still in progress.

It shot into national limelight during the 2016 US presidential election season after it published evidence of a monumental hack of the Democratic National Committee.

During the quarter, CrowdStrike announced the availability of the CrowdStrike Store that opens the CrowdStrike Falcon platform to third-party applications. It also launched Falcon for Mobile, an endpoint detection and response solution for mobile devices.

The market for endpoint security services is intensely competitive. CrowdStrike’s competitors include legacy antivirus product providers McAfee and Symantec Corporation; alternative endpoint security providers Cylance and Carbon Black; and network security vendors Palo Alto Networks and FireEye.

Before going public, CrowdStrike had raised $481 million in funding from Accel Partners, CapitalG, March Capital Partners, Rackspace, Telstra Ventures, Warburg Pincus, IVP, General Atlantic, Instant Scale Ventures and Cloud Apps Capital Partners. It last raised $200 million in June 2018 at a valuation of $3 billion.

CrowdStrike raised $659.1 million in net proceeds from its initial public offering, which closed on June 14, 2019. The IPO was priced at $34 per share at a valuation of $6.6 billion. The stock is currently trading at $85.80 with a market cap of $17.6 billion.