I hope you had a great weekend!
In this week's issue:
Big cyber earnings
Cyber leaders are quitting
A lot happened last week.
The US jobs report came back with less people employed and more people on unemployment benefits, several large tech and cyber companies announced layoffs (with more expected to come this week), and a wave of public cyber companies posted their Q3 earnings reports.
On the public cyber companies earning side, Cloudflare, Cyberark, Fortinet, and Rapid7 all issued their reports with mixed responses from the market.
Cloudflare barely beat their earnings and the stock took a hit.
CyberArk is down year over year, but beat their estimates and their stock went up over 7% on news that they raised their full year revenue targets
Fortinet fell about 14% after it fell short of earnings estimates
Rapid7 fell over 20% after it cut it's own earning projections and Truist Securities changed their guidance to "hold" rather than "buy."
Mixed emotions all around.
What's interesting, however, is that many of these companies still had good growth in Q3 with revenue up quarter over quarter, but they weren't up as much as investors wanted. Growth was good, but not good enough. Investors want that consistent moonshot growth that cyber companies have enjoyed the past several years (likely to offset their portfolios that are down bad).
Even the best companies are seeing macroeconomic headwinds and many of them are reforecasting their Q4 earnings estimates and beyond and are rethinking how they price their products. Publicly, cyber is starting to feel the sentiment about there no longer being any "free lunch" anymore.
So what does this mean? I think this means we'll see even more seed stage deals in the cybersecurity space, as they have less momentum from the downward public market trends, and now is a great time to start a cybersecurity company if you've got product market fit. Lets get this bread 🥖
Onward to this week's issue.
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📊 Industry News
💰 Funding Summary
11 companies raised $186.7M across 10 unique product categories
8 companies were acquired or had a merger event across 7 unique product categories
🧩 Funding by Product Category
$100.0M for Application Security
$36.0M for Managed Detection and Response (MDR)
$25.0M for Threat Detection and Response (TDR)
$11.0M for Secure Networking
$10.0M for Anti-Bot
$4.5M for API Security
$70.0K for Professional Services
$50.0K for Managed Security Services Provider (MSSP)
$45.0K for Secure Collaboration and Messaging
An undisclosed amount for Continuous Threat Exposure Management (CTEM)
🏢 Funding By Company
Telios, a decentralized and privacy-focused email platform, raised a $45.0K Seed.
🤝 Mergers & Acquisitions
🔐 Secure The Job
If you're looking for new opportunities (actively or passively), I've got two ways to help:
Return on Security Job Board - Browse the jobs I curate each week and apply for what matches your interests.
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📚 Great Reads
Nearly a Third of Cybersecurity Leaders Considering Quitting - Work life balance is most disliked part of the job for cybersecurity leaders.
Awesome Cybersecurity Conferences - A list of a number of security conferences around the world and a link to their videos and slides, by Tal Eliyahu.
The growing threat of cyber attacks on cryptocurrencies - While there are plenty of good crypto projects with good intentions, investors and businesses must tread extremely cautiously while dealing with virtual currencies.
Have questions, comments, or feedback about this issue? I'd love to hear from you. Reach out on Twitter or reply directly to the newsletter version of this issue.
Thanks for reading and see you again next time!
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