Info@NationalCyberSecurity
Info@NationalCyberSecurity

Cybersecurity firm Snyk sees losses widen as expansion costs bite | #hacking | #cybersecurity | #infosec | #comptia | #pentest | #ransomware


(Snyk)

Losses widened to $267 million (£218 million) at Snyk, its 2022 accounts show today, as the cybersecurity business counted the cost of its aggressive expansion plans.

The London-based tech firm saw its costs go up by half after it ramped out its marketing budget, spent over $12 million in acquiring data analytics business TopCoat, and recruited hundreds of new staff in 2022, leading to a doubling in its wage bill.

Those costs ultimately proved too difficult for Snyk to swallow, and in April it laid off over 120 staff, around 12% of its workforce, in a bid to “increase operational efficiencies and streamline expenses.”

Its turnover rose by nearly $100 million to $147 million in 2022.

The cybersecurity market has boomed over the past year as a number of high-profile cyberattacks on blue-chip businesses prompted firms to strengthen the protections around their IT systems.

But the industry has also seen fierce competition between major players, with vast sums spent on advertising and marketing to secure new customers. Snyk’s British rival Darktrace also saw its revenues up by around $100 million in the past year, but it spent as much as $228 million on sales and marketing, more than four times its spend on research and development.

In December, Snyk completed a $197 million funding round which saw its valuation cut to $7.4 billion down from $8.6 billion in the previous year. That valuation has sunk further more recently, according to data on internal transactions obtained by news website Calcalist.

Snyk founder Guy Podjarny has a net worth of £614 million, according to the Evening Standard Tech Rich List.

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