Privileged account management (PAM) software provider CyberArk continues to gain momentum with channel partners, but the security company's expansion from enterprise accounts into the midmarket is still in its early days, CEO Udi Mokady says.
Also, CyberArk's multi-tenant software platform for MSSPs (managed security services providers) didn't generate any chatter during the company's August 7 earnings call. That nitpick aside, the company appears to be performing well.
For its second quarter of 2019, CyberArk said:
- Total revenue was $100.2 million, up 29 percent compared to the corresponding quarter last year.
- GAAP net income was $13.4 million, up from $8.4 million in the corresponding quarter last year.
The figures generally beat Wall Street's expectations.
CyberArk Channel Partner Momentum: Enterprise vs Mid-Market
Backed by the new CyberArk Partner Network, channel partners generated or influenced roughly 65 percent of the company's revenue in Q2 -- that's up from about 60 percent of revenue in Q1 of 2018, according to MSSP Alert reporting.
"We believe this new partner program provides us with an opportunity to accelerate momentum with our channel and advisory partners," CyberArk CEO Udi Mokady told Wall Street analysts during the August 7 earnings call.
The partner program has global reach, CFO Josh Siegel added. "We had the opportunity to launch it at our major events in Europe, in Amsterdam and Chicago for the Americas, but also earlier in several of the APJ regions, and we did it very thoroughly where we gave partners a heads up about it coming into effect where essentially it’s taking CyberArk to the next step," he said.
In terms of customer size, CyberArk and partners typically win business in enterprise accounts, Mokady. A mid-market push is "still early days from us," he added. The effort is moving in the right direction -- especially since partners allow the software company to "touch the mid-market with less presence in the field," he said.
CyberArk Channel Partners: Big Consulting Firms and MSSPs?
During the latest earnings call and previous earnings calls, CyberArk has specifically mentioned Accenture, Deloitte and PwC as key partners building practices around the company's software.
Still, CyberArk did not mention its multi-tenant platform push for MSSPs (managed security services providers) during the latest earnings call. CyberArk launched the multi-tenant offering for MSSPs in April 2018.