The cybersecurity giant, which had a $750 million credit facility with Silicon Valley Bank, says it hasn’t utilized the credit line or see a need to in the future.
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On Friday, CrowdStrike updated its Investor FAQs page to disclose that the revolving credit line “remains undrawn and we do not foresee a need to access this facility.” CRN has reached out to CrowdStrike.
Fatima Boolani, co-head for U.S. software equity research at Citi, researched the potential exposure for CrowdStrike in the SVB failure and reportedly determined it “doesn’t seem all that concerning.”
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Last week, CrowdStrike reported results for the fourth quarter of its fiscal 2023, ended Jan. 31, which beat Wall Street analyst estimates on both revenue and profits. “CrowdStrike is executing exceptionally well in a challenging macro environment,” co-founder and CEO George Kurtz said during the company’s quarterly call with analysts March 7, pointing to indicators including quarterly records in net-new annual recurring revenue and net-new customers.
The collapse of SVB—No. 16 on the list of biggest U.S. banks—was the second-largest U.S. bank failure in history and has been attributed to a run on deposits by worried customers.
On Sunday, the Biden administration intervened to ensure that SVB depositors would continue to have access to their funds. A joint statement by Secretary of the Treasury Janet Yellen, Federal Reserve Board Chair Jerome Powell and FDIC Chairman Martin Gruenberg called the move a “decisive” action meant “to protect the U.S. economy by strengthening public confidence in our banking system.”