CrowdStrike prices IPO at $34, above range

Key Points
  • The cybersecurity firm raised money above its range of $28 and $30 apiece.
  • CrowdStrike reported a net loss of $140 million in its last fiscal year on $250 million in revenue.
  • CrowdStrike follows Uber, Lyft and Pinterest to the public markets.
George Kurtz, co-founder and chief executive officer of Crowdstrike speaks during a global technology conference in Laguna Beach, California, Oct. 17, 2017.
Patrick T. Fallon | Bloomberg | Getty Images

CrowdStrike on Tuesday priced shares in its initial public offering at $34 each, above the high end of the range. The company raised $612 million ahead of its debut on public markets.

The cybersecurity firm, which will begin trading Wednesday morning on the Nasdaq under the ticker symbol "CRWD," was expected to price its 18 million Class A shares between $28 and $30 per share. Pricing at the top end of the range would have raised more than $600 million, according to CrowdStrike's prospectus, if the underwriters exercised certain options.

CrowdStrike uses cloud-based technology to detect and analyze attempted security breaches. It follows several other major tech companies into the public markets this year. Uber, Pinterest, PagerDuty, Zoom and Lyft have already gone public in 2019. Messaging platform company Slack is expected to follow later this month.

In its S-1 filing, Crowdstrike reported a net loss of $140 million on $250 million in revenue for the year ending January 31. The company also reported subscription relationships with more than 2,500 customers, including Credit Suisse and Amazon Web Services.

CrowdStrike was valued at $3 billion in a private round earlier this year. It had 1,455 full-time employees as of January 31, according to the filing.

The company's stock is divided into Class A shares — offered for public sale — and Class B voting shares. Private equity company Warburg Pincus is the largest shareholder of the Class B tier, with 30% of outstanding Class B shares as of the time of the offering.

Goldman Sachs, J.P. Morgan, Bank of America Merrill Lynch and Barclays are the lead underwriters on the offering. The underwriters have the option of buying up to 2.7 million more shares of Class A stock at the IPO price, according to a statement.

— CNBC's Jordan Novet contributed to this report.