Appgate Announces Third Quarter Fiscal 2021 Results
Third Quarter Fiscal 2021 Financial Highlights:
- Revenue: Total revenue of $11.5 million, an increase of 69% year-over-year.
- Annual recurring revenue (ARR): Total ARR at the end of the quarter was $30.9 million, an increase of 47% year-over-year.
- Gross margin: Gross margin for the quarter was 55%, compared to 27% for the third quarter 2020. Non-GAAP gross margin for the quarter was 66%, compared to 53% for the third quarter 2020. See the section titled “Non-GAAP Financial Measures” below for important disclosures regarding the use of non-GAAP supplemental financial measures, including reconciliations to their most comparable GAAP financial measure.
- Operating loss: Operating loss for the quarter was $12.3 million compared to an operating loss of $12.4 million for the third quarter 2020. Non-GAAP loss from operations for the quarter was $9.1 million, compared to $8.4 million for the third quarter 2020.
Third Quarter Fiscal 2021 Business Highlights
- Named a leader in The Forrester New Wave™: Zero Trust Network Access, Q3 2021. Appgate SDP was evaluated amongst 15 vendors identified by Forrester as the most significant providers in the ZTNA category. Appgate received a differentiated rating, the highest possible, in six criteria, including deployment flexibility, non-web and legacy apps, ecosystem integration, client support, connector capabilities and product vision.
- Announced the appointment of Jawahar Sivasankaran as President and COO, bringing more than 23 years of experience in cybersecurity sales and technology, and a proven track record of transformative leadership in large security businesses. Sivasankaran will lead the company’s growth strategy and oversee all go-to-market business operations, including sales, marketing, professional services and customer success.
- Announced plans to deliver Appgate SDP as a service to U.S. government entities via a FedRAMP Joint Authorization Board (JAB)-approved environment. Through a partnership with Rackspace Government Solutions (RGS), Appgate SDP will be made available as an additional service offering within Rackspace Government Cloud, a managed security and compliance platform.
- Named as a 2021 technology leader by Quadrant Knowledge Solutions in the SPARK Matrix analysis of the global Risk-Based Authentication (RBA) market. The report recognizes Appgate for its robust RBA capabilities including, customizable authentication, transaction monitoring and risk orchestration. The solution, powered by machine learning, is noted for its ability to detect and mitigate device and user behavior anomalies in real-time through device identification and multi-factor authentication.
- Selected to participate in the Implementing a Zero Trust Architecture Project with the National Cybersecurity Center of Excellence (NCCoE) at the National Institute of Standards and Technology (NIST). The goal of this project is to develop practical, interoperable approaches to designing and building zero trust architectures that align with the tenets and principles documented in NIST SP 800-207, Zero Trust Architecture.