On May 14, 2019, crowdstrike submitted a listing application to the U.S. Securities and Exchange Commission, so that we can have a clearer understanding of the operation of the 8-year-old Unicorn enterprise of network security. Let's not talk about specific products and solutions for the moment, and start with data to form an intuitive experience of crowdstrike.
First of all, as of January 31, 2019, there are 2516 subscribers in the world, including 44 of the fortune 100, 37 of the top 100 enterprises and 9 of the top 20 banks.
Looking at the key financial indicators, total revenue increased from $52.7 million in fiscal year 2017 (its fiscal year 2017 refers to January 13, 2016 to January 31, 2017, the same below) to $118.8 million in fiscal year 2018, a 125% year-on-year increase, and then from $118.8 million in fiscal year 2018 to $249.8 million in fiscal year 2019, representing a 110% year-on-year increase.
Different from most domestic network security enterprises, the core revenue of crowdstrike is subscription revenue. Subscription revenue increased by 144% from $37.9 million in fy17 to $92.6 million in fy18, and by 137% from $92.6 million in fy18 to $219.4 million in fy2019.
From the perspective of revenue, crowdstroke has grown very fast, but its profitability is not optimistic. In the past three fiscal years, it has been a net loss, from a net loss of $91.3 million in fiscal 2017 to $135.5 million in fiscal 2018, and a net loss of $141.1 million in fiscal 2019. As of January 31, 2019, the cumulative deficit was $519.1 million. Moreover, crowdstrik expects to continue to generate net losses for the foreseeable future, given that it will continue to invest in our business and sales capabilities in response to huge market opportunities.
Another important indicator of the company's life and death line: cash flow. It can be seen that the cash flow from operating activities in fy2019 is - 23 million US dollars, but it has improved significantly compared with that in fy2017 and fy2018, but the main source of cash flow support is financing. Moreover, in April 2019, crowdstrike signed a US $150 million revolving credit loan with Silicon Valley Bank and other lenders, with predictable comprehensive cash flow under control.
After looking at the present, and looking at crowdstroke's forecast for the future, it believes that its products cover five markets.
1. Enterprise endpoint security. In 2013, crowdstroke launched Falcon overwatch and my Falcon insight cloud module, and in 2017, Falcon prevent, which belongs to EDR and ngav (next generation anti-virus). IDC estimates that the global market for these segments will reach US $7.6 billion in 2019 and US $8.7 billion by 2021.
2. Threat Intelligence. In 2012, crowdstrike released Falcon x cloud module to deal with the threat intelligence market. IDC estimates that the global market for threat intelligence will reach US $1.6 billion in 2019 and US $2 billion by 2021.
3. Security and vulnerability management. In 2017, crowdstrike released the Falcon spotlight cloud module to address the vulnerability management market. IDC estimates that the global market size of this segment will reach US $8.4 billion in 2019 and US $10.4 billion by 2021.
4. It system and service management. In 2017, crowdstrike released the Falcon discover cloud module to meet the needs of the IT asset management market. IDC estimates that the global market in this area will reach $2 billion 600 million in 2019 and $3 billion 100 million by 2021.
5. Hosted security services. In 2018, crowdstroke released the Falcon complete cloud module to meet the needs of the hosted security service market. Its initial goal is for small organizations that lack security people, but the solution also helps security teams in large enterprises. IDC estimates that the global market size of this segment will reach US $24.8 billion in 2019 and US $29.6 billion by 2021. Crowdstroke estimates that its opportunity space in this segment will be $4.4 billion in 2019 and $5.1 billion in 2021.
Combined with these segments, crowdstroke estimates its global opportunities at $24.6 billion in 2019 and is expected to reach $29.2 billion by 2021.
The next article will look at crowdstroke's alternative terminal security rise from a technical point of view.