CyberArk Gains Momentum for Its Security Distribution Partners; Expected MSSP partnerships

Udi Mokady, CEO of CyberArk

CyberArk’s SaaS-based identity security business is gaining traction as a channel partner, and CyberArk also expects to see more benefits with MSSPs (managed security service providers), said the CEO Udi Mokady.

“Our channel program is key to our success, and our partners continue to adapt their identity security practices. We’ve added new routes to market, enhanced collaboration and improved channel program efficiencies across our VARs, notices and MSPs,” said Mokady.

The comments surfaced Nov. 3 during CyberArk’s upbeat third-quarter 2022 earnings call with Wall Street analysts.

CyberArk Channel Partner Momentum, Security Revenue

Other takeaways from the earnings call include:

  • Channel partners now make up about 70% of CyberArk’s business, and the company is “in the early innings with MSSPs — and that’s a big opportunity,” Mokady said.
  • Macroeconomic uncertainty did not have a material impact on CyberArk’s business in the third quarter. Evidence includes nearly 50% growth in ARR (annual recurring revenue, overall revenue acceleration, and increased company ARR forecast.
  • 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 and Rapid7 under pressure

CyberArk’s strong financial performance and upbeat outlook stood in stark contrast to several other security-related earnings reports this week. Shares of Fortinet, Qualys and Rapid7, for example, each saw double-digit percentage declines on Nov. 3, 2022, amid economic headwinds and mixed financial forecasts.

Fortinet and Qualys did not mention service provider or channel partner milestones in their respective earnings calls.

Meanwhile, Rapid7 outlined some challenges with a business model transition. In the second half of 2021, the company began to “mature our sales movement into the channel itself, to enable all of our salespeople to sell the full suite of our analytics products,” CEO Corey said. Thomas to Wall Street analysts on an earnings call. But early in the last quarter, it became clear that “our sales force is taking longer than expected to effectively sell a broader set of solutions,” he added. Rapid7 is taking steps to address the challenges, the company said.