In the age of monetization of the information, we can safely say that data is organizations’ most valuable asset. And this is true for corporations as well as government institutions.
Events like WikiLeaks, Cambridge Analytica et al underpinned the fact that data is of strategic value for business as well as democracies.
CyberArk (NASDAQ: CYBR) was one of the first companies to realize the essential and pervasive need to secure access to privileged information by organizations whatever their size, type or location.
With digitalization of the business, information is flowing through wires, clouds and robots, changing the IT map and posing a challenge to security. Most of the IT infrastructure of organizations works on the cloud, partly on premises, partly on hybrid environments; many processes have been automated (robotics process automation), requiring access by humans and machines, and the use of business critical applications by members of the organizations with specific privilege levels (from employees, managers to contractors) and from different places and environments.
We could picture IT Infrastructure as a castle with many gatekeepers guarding the entry of people and things. In each entry there is an identity check done of every person that intends to cross it. Identity security has become the cornerstone of cyber security, what is known in the business as Privileged Access Management.
Founded 20 years ago, CyberArk is the leading company in the Privileged Access Management market, and was one of the first companies to foresee the huge potential of the identity security business, developing it into a cost-effective, integrated, scalable solution, known as Security as a Service (SaaS) a distinct category within the IT market.
CyberArk was founded in Israel in 1999 by Alon Cohen and current CEO Udi Mokady, who assembled a team of security engineers who implemented the Digital Vault technology, which was patented in the US. They built up a full -fledged global company serving 4,600 businesses, including more than 50% of the Fortune 500 and more than 30% of the Global 2000.
Since going public in 2014, CyberArk has given nothing but good news to investors, reporting continuous growth, profits and solid financials, exceeding analysts’ forecasts.
Its stock price has moved along the solid financial trend, reporting a gain of 115% in one year. It has a market capitalization of $5.22 USD billion with 37.74 m outstanding shares, and a P/E of 95.67. CYBR traded at $118 on the closing of August 9 ( 52-week high of $148 on July 26). CyberArk has shown consecutive profits growth for the last four years reporting revenues of USD 343.20 million in 2018 (year on year +31.14% from 261.70m) while net income improved 193.92% from 16.02m to 47.07m.
Last August 7, the company announced strong second quarter 2019 results reporting USD 100.2 million revenues, up 29% compared with 2018’s Q2. “We are pleased to increase our guidance for the full year on both the top and bottom line”, said CEO Udi Mokady.
A ripe market for cyber security
Mokady’s positive view about the future is supported by the fact that most companies have not yet implemented full IT security measures, suggesting that the market may be at the bottom of the curve. Since 2014, there have been data breaches at companies as varied as EBay, JPMorgan, Home Depot, Anthem, Sony and Yahoo, to name a few.
Credentials are built in in every piece of IT infrastructure and are the most commonly exploited piece in any attack. Any application, firewall, any piece of IT infrastructure requires an identity which needs protections, the target market being virtually endless.
According to CyberArk’s Global Advanced Threat Landscape 2019:
less than half of organizations have a privileged access security strategy in place.
84% state that IT infrastructure and critical data are not fully protected unless privileged accounts, credentials and secrets are secured.
only 49% have a privileged access security strategy in place for protecting business critical applications and cloud infrastructure
Financial cybersecurity is also under scrutiny from regulators as a potential cyber attack could spread and compromise the integrity of the financial network even for example, the US Federal Reserve. This threat would most likely come from an identity breach.
According to the World Economic Forum Center for Cybersecurity, economic loss due to cyber crime is predicted to reach $3tn by 2020, and 74 per cent of the world’s businesses can expect to be hacked in the coming year. Digital connectivity makes cyber crime a global threat that requires a standardised approach.
CyberArk is positioned at the right place, time and moment to reap the yields of a huge profitable opportunity. “Companies of the world be hold: do not wait until the barbarians are at the gate to secure your realm”
Comments