Cloud-delivered endpoint protection and security company CrowdStrike delivered stronger-than-expected financial results for the company's first quarter of its fiscal 2020, ended April 30, 2019. It's a safe bet MSSP (managed security services provider) partnerships helped to fuel the growth.
It's the first quarterly report that CrowdStrike has shared since the company's successful IPO (Initial Public Offering) in June 2019. The company's long-term business plan, as outlined in IPO documents, leans heavily on MSSPs.
CrowdStrike's first quarter of fiscal 2020 results included:
- Revenue of $96.1 million, up 103 percent compared to $47.3 million in the first quarter of fiscal 2019.
- A net loss of $26 million, smaller than the $33.6 million loss in the first quarter of fiscal 2019.
The company's stock (symbol: CRWD) surged roughly 16 percent in after-hours trading amid the news.
In a prepared statement, CrowdStrike CEO George Kurtz said:
“We are pleased with the strong start to the year. We achieved 103% year-over-year revenue growth in the first quarter, which is consistent with the preliminary results that we shared in our IPO prospectus. 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.”
CrowdStrike added 543 net new subscription customers in the quarter for a total of 3,059 subscription customers as of April 30, 2019. The company did not specifically disclose MSSP partner momentum in the earnings statement, but we're tuning into the earnings call this evening for more potential updates. The partner program gained tiered levels in early 2019.
Crowdstrike Competition: Potential Rivals
CrowdStrike's momentum differentiates the company from a lengthy list of slower-growth, established firms. Sophos, for instance, last week disclosed 3 percent quarterly growth. Struggling Symantec, which had spoken with Broadcom about a potential merger, is expected to announce quarterly results on August 8. And McAfee has been exploring a potential IPO.
Among the additional rivals to watch: Startups such as AlienVault and Cylance both got acquired ahead of potential IPO pursuits. AT&T and BlackBerry, respectively, snapped up those companies in 2018. Folks are also watching Carbon Black, Cybereason and SentinelOne for ongoing clues about the cyber market’s overall health.