In a sign of continued demand for cybersecurity products and services, 79 security companies appeared on the Inc. 5000 list for 2022.
The annual list tracks the fastest growing privately held businesses in America. Among the key financial and business takeaways from this year’s list:
- Security company honorees generated 260% median revenue growth, and added more than 605,042 new jobs to the economy.
- Total combined revenues for the security companies was $22.7 billion — or roughly $287 million per security company.
Dozens -- perhaps hundreds -- of additional Inc. 5000 honoree companies for 2022 also influence the security market in various ways. For instance, 379 IT service providers -- some of which are MSPs with cyber capabilities -- also landed on the annual list.
Inc. 5000 List: Are Security Companies Profitable?
Though impressive, the Inc. 5000 list is sometimes difficult to put into proper context.
For instance, the list emphasizes year-over-year percentage revenue growth — which generally makes it easier for smaller companies to dominate the top of the list.
Also, Inc. no longer publishes actual revenue dollar figures for each company, and profits (or losses) for each business is undisclosed. As a result, it’s difficult to see which of the Inc. 5000 honorees truly have sustainable business models — and which ones are more likely to flame out.
Still, the annual list provides an important benchmark for small business innovation, job creation and other data points that allow security companies, MSPs and IT service providers to measure themselves against fast-growth companies.