💰 Security, Funded #156 - Cyber Earnings Szn

Security, Funded is a weekly deep dive into cybersecurity funding and industry news captured and analyzed by Mike Privette. This week’s issue is presented together with Material Security and Outpost24.

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Table of Contents

• 😎 Vibe Check

• Market Summary

• 📸 YoY Snapshot

• 🤙 Earnings Reports

• 🧩 Funding By Product Category

• 🏢 Funding By Company

• Funding by Country

• 🤝 Mergers & Acquisitions

• Great Reads

• 🧪 Labs

• 5 companies raised $290.6M across 5 unique product categories in 2 countries

• 5 companies were acquired or had a merger event across 5 unique product categories

• 100% of funding went to product-based cybersecurity companies

• 4 public cyber companies had an earnings report

This is a rolling 12-week chart comparing funding and acquisitions each week in a year-over-year (YoY) view between 2023 and 2024.

Here are notable earnings reports from public cybersecurity companies. This section is Powered by Quartr, where I track all the latest earning reports.

Earnings reports this week: CyberArk, Fortinet, Qualys, and Rapid7

CyberArk (CYBR)

CyberArk reported a strong second quarter for 2024, beating expectations with a 28% YoY revenue growth to $224.7 million and a 33% increase in total ARR to $868 million. Key drivers for its performance include strong subscription billing growth, strategic customer acquisitions, and strong international growth in EMEA and APACJ.

CyberArk highlighted the acquisition of Venafi, which is geared towards improving its machine identity or “Non-human identity (NHI)” capabilities. CyberArk raised its full-year guidance, showing strong confidence in the identity industry and its overall position.

NHI was also a recurring theme at Black Hat this year. While NHI appears to be just “secrets management” with new marketing, the drive to secure these identities and secrets is stronger than ever.

Fortinet (FTNT)

Fortinet had a strong year, beating expectations and growing revenue by 11%. Momentum comes, in part, from significant acquisitions (more below), adding 6,300 new customers (!), and a big uptick in service revenue.

According to the CEO, 70% of Fortinet's business is international, which could be correlated to the same international growth that CyberArk reported.

Fortinet remains optimistic about future growth, especially in the firewall market, which it believes is expected to recover in 2025. I’m no vulnerability expert, but this is interesting coming from a firewall company that has had 50+ CVEs related to its products this year. 🤔 Even still, the stock continues upwards.

Qualys (QLYS)

Qualys's earnings report was mixed. While revenue grew by 8% to $148.7 million, driven by strong international and federal sector demand with increased channel contributions, it had trouble landing and expanding with customers and lost its Chief Product Officer.

Qualys also cited a tougher macroeconomic climate, and its stock has been down ~5% since.

Rapid7 (RPD)

Rapid7 had a solid second quarter, hitting a 9% increase in ARR to $816 million with a 19% increase in international sales. Rapid7 cites its growth for strong demand for its unified threat platform offerings, which contributed over 40% of new ARR.

Rapid7 mentioned a challenging macro environment but maintained its full-year guidance, and its stock was up ~9%.

As always, the public cyber company tracker shows all public cybersecurity companies worldwide, along with market data, funding raised, product categories, and more!

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Data Methodology and Sources

• All of the data is captured point-in-time from publicly available sources.

• All financial figures are converted to U.S. dollars (USD) when collected.

• Company country locations are pulled from publicly available sources.

• Companies are categorized using our system at Return on Security, and we write all the company descriptions.

• Sometimes, the details about deals, like who led the round, how much money was raised, or the deal stage, might get updated after the issue is first published.

• Let us know if you spot any errors, and we’ll fix them.

About Return on Security

Return on Security is all about breaking down the cybersecurity industry for you with expert analysis, hard facts, and real-life stories. The goal? To keep security pros, entrepreneurs, and investors ahead in a fast-moving field. Read more about the “Why” here.

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