CyberArk's SaaS-based identity security business is gaining channel partner momentum, and CyberArk also expects to see more upside with MSSPs (managed security services providers), CEO Udi Mokady said.
"Our channel program is key to our success, and our partners continue to scale their identity security practices. We have added new routes to market, enhance collaboration and improved channel program efficiencies across our VARs, advisories and MSPs," Mokady siad.
The comments surfaced November 3 during CyberArk's upbeat Q3 2022 earnings call with Wall Street analysts.
CyberArk's Channel Partner Momentum, Security Revenues
Among the additional takeaways from the earnings call:
- Channel partners now represent about 70% of CyberArk's business, and the company is in "the early innings with the MSSPs -- and that's a big opportunity," Mokady.
- Macroeconomic uncertainty did not have a significant impact on CyberArk's business in the third quarter. The proof points include nearly 50% growth in ARR (annual recurring revenue, overall revenue acceleration, and an increase in the company's ARR guidance.
- Overall revenue was $152.7 million in the third quarter of 2022, up 26% from $121.6 million in the third quarter of 2021.
Security Market Headwinds: Fortinet, Qualys ande Rapid7 Under Pressure
CyberArk's strong financial performance and upbeat forecast were in stark contrast to several other security-related earnings reports this week. Shares in Fortinet, Qualys and Rapid7, for instance, each witnessed double-digit percentage declines on November 3, 2022, amid economic headwinds and mixed financial forecasts.
Fortinet and Qualys did not mention service provider or channel partner milestones during their respective earnings calls.
Meanwhile, Rapid7 described some challenges with a business model transition. In the back half of 2021, the company began to "mature our sales motion towards the channel itself, towards enabling all of our salespeople to sell the full suite of our insight products," CEO Corey Thomas told Wall Street analysts on an earnings call. But early in the latest quarter, it became clear that "our salesforce is taking longer than we expect it to effectively sell a wider set of solutions," he added. Rapid7 is taking steps to address the challenges, the company said.