Summary
CrowdStrike Holdings, Inc. (CRWD) filed its 10-Q for the period ending July 30, 2020, on September 2, 2020. As an emerging growth company, CrowdStrike continues to leverage certain exemptions from regulatory requirements, which may affect comparability with other companies and potentially influence investor perception of its Class A common stock. The company's corporate structure includes a dual-class stock system and provisions that could make a change of control more difficult for potential acquirers and limit the ability of stockholders to replace board members or current management. These structural elements, including the board's ability to issue preferred stock without stockholder approval, are important considerations for investors assessing governance and potential dilution risks.
Financial Highlights
50 data points| Revenue | $198.97M |
| Cost of Revenue | $54.39M |
| Gross Profit | $144.58M |
| R&D Expenses | $50.48M |
| Operating Expenses | $174.57M |
| Operating Income | -$29.99M |
| Interest Expense | $174K |
| Net Income | -$29.87M |
| EPS (Basic) | $-0.14 |
| EPS (Diluted) | $-0.14 |
| Shares Outstanding (Basic) | 216.69M |
| Shares Outstanding (Diluted) | 216.69M |
Key Highlights
- 1CrowdStrike is operating as an 'emerging growth company' until January 31, 2021, taking advantage of regulatory exemptions, including those related to SOX 404 auditor attestation and executive compensation disclosures.
- 2The company has elected an extended transition period for adopting new or revised accounting standards, which may impact the comparability of its financial statements with those of companies that have adopted them earlier.
- 3Potential for significant dilution exists due to the authorization to issue a large number of Class A common stock, preferred stock, and other securities, which could be used in financings, acquisitions, or stock incentive plans.
- 4CrowdStrike's charter documents and Delaware law contain provisions designed to make a takeover more difficult, including a dual-class common stock structure, a classified board of directors, and the board's ability to issue preferred stock without stockholder approval.
- 5The dual-class stock structure gives significant voting influence to Class B common stock holders, irrespective of their proportional ownership.
- 6There were no unregistered sales of equity securities during the reported period.
- 7No material changes have been made to the planned use of proceeds from the company's Initial Public Offering (IPO) as described in its final prospectus.