Carbon Black IPO Filing: MSSPs Are Critical to Endpoint Security Success
Carbon Black‘s latest SEC filing reveals the endpoint security company’s intense dependence on MSSPs (managed security services providers) for success. In fact, the SEC filing mentions MSSPs nearly 50 times — a clear indication that the cybersecurity outsourcing trend shows no signs of slowing down.
Carbon Black is seeking to raise about $128 million in the IPO, and the offering could value the company at more than $1 billion. The firm previously filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) relating to a proposed IPO. The intended price range is $15.00 and $17.00 per share, according to its SEC filing.
Updated Thursday, May 3, 2018: The IPO range has been raised to $17.00 to $19.00 per share, and the IPO is expected on May 4.
Carbon Black Growth, Strategic Partnerships
Carbon Black offers a variety of endpoint security solutions, including its Predictive Security Cloud that captures, records and analyzes unfiltered endpoint data. Revenue has increased from nearly $71 million in 2015 to $162 million in 2017, and the company appears poised to serve the $6.5 billion endpoint security market for years to come.
Carbon Black has established partnerships with Kroll, Ernst & Young and over 100 incident response firms. Carbon Black also boasts partnerships with IBM and VMware, the company pointed out, that could help the business reach the large global customer bases of these technology leaders.
Carbon Black Channel Partners?
Carbon Black primarily sells its products through a channel go-to-market model, according to its SEC filing. The company enables MSSPs to deploy its software products to customers as components of a services provider’s portfolio, the company said. Furthermore, Carbon Black allows VARs to place orders for its products and services in connection with a VAR’s own sales to customers.
Ultimately, Carbon Black relies on channel partners to generate a significant portion of its revenue, the company indicated. Ninety-four percent of Carbon Black’s new and add-on business was closed in collaboration with its channel partners in the final three months of 2017, the business stated. Carbon Black also is focused on generating sales to new and existing customers through its channel partners as a part of its growth strategy.
So far, the company’s products are used by more than 3,700 customers, including 33 Fortune 100 firms.