CyberArk launches corporate VC fund

Cyber ​​security companies CyberArk (Nasdaq: CYBR) has set up a $ 30 million fund, CyberArk Ventures, to invest in cybersecurity startups. CyberArk Ventures has merged with four strategic venture capital investors: Venrock, YL Ventures, Team8 Capital and Merlin Ventures.

CyberArk has a market capitalization of $ 4.3 billion. It provides cybersecurity solutions with an emphasis on identity security in a company. You are changing your business model from license sales to subscription sales.

With the launch of CyberArk Ventures, three initial investments in three companies have been announced: Dig Security, which provides real-time threat detection solutions for data assets hosted in public clouds; Enso Security, which deals with application security management; and Zero Networks, which provide identity-based micro-segmentation

CyberArk’s founder, chairman and CEO Udi Mokady said: “We are looking for innovative security start-ups that solve difficult problems for their customers. Our first three investments are trifecta – network security, application security and data security. CyberArk Ventures is a natural development of our business strategy – which provides CyberArk an exciting opportunity to support the next wave of cyber security innovators and nurture an expanded pioneering ecosystem. “

In addition to funding, CyberArk Ventures will provide support to its portfolio companies to bring their product to market, access to CyberArk technology and CyberArk Labs research, engagement with CyberArk leadership, and networking opportunities with potential partners and customers. CyberArk Ventures also offers new companies guidance and feedback to improve their product design.

At the same time, CyberArk also released its financial statements for the first quarter. Revenue was below the consensus analysts’ estimate, but the company also made a smaller loss than forecast. Revenue for the quarter was $ 128 million and the net loss on a non-GAAP basis was $ 0.30 per share. On a GAAP basis, the net loss was $ 37.8 million. Revenue from subscribers grew by 110% during the quarter to $ 51.9 million, and ARR (annual recurring revenue) amounted to $ 427 million.

For the second quarter, the company expects revenue of $ 135-141 million and a non-GAAP loss per share of $ 0.25-0.37, or a total of $ 10.2-15 million. For the year as a whole, earnings are expected to be $ 583.5-598.5 million, ARR $ 535-541 million and net loss $ 0.60-0.92 per share.

Published by Globes, Israel business news – en.globes.co.il – on May 12, 2022.

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