Business Overview
CYBR is the category leader in the privilege access management segment of security (PAM). This segment is still largely on-premise, but CYBR does offer cloud solutions. Revenues are broken out by licenses (SAAS), and maintenance and service. The license business is roughly ~55% of total revenue where maintenance and services accounts for the remaining ~45%. Due to recent privilege breaches in the past few years (Marriott, Equifax, Uber) breaches are inherently becoming a threat to businesses as companies acquire more sensitive customer data, positioning PAM well for growth. According to a Cowen survey, 25% of of CISO’s identified PAM as top #1 or #2 priorities in 2019. Security is going to remain a top priority for companies going forward and after a Q2 stock price pullback, CYBR is well positioned for growth based on continued financial health and strong alternative data trends.
Additionally, PAM is positioned for growth because 1.) Most firms aren’t using a PAM solution 2.) Secular shifts to cloud will require companies to evaluate new security vendors
From quotes below you will see that there is still a tremendous amount of opportunity for growth in CYBR as most of their new business is from greenfield accounts.
And actually, you asked me for my prediction or my estimate, I don't know if I have one, but if you look at industry analysts, there's been some reports that show that 50% of enterprises are not -- do not have a PAM, a Privileged Access Security solution in place, monitoring managering this in a proper way. And of the ones that do, most of them are very much under deployed, so they're only doing it for pieces of it. So we, in fact -- we still view the world market, we have 4,800 customers, there could be -- we can get to 48,000 customers. I mean many of our large security colleagues have 100,000 customers. And so yes, we believe we
