We find that many of our customers and partners are vested in us as a key technology provider and we like to hear on occasion how our business is doing. With that in mind, I am pleased to announce that calendar year 2014 was another banner and record year for Centrify across all the key performance indicators we track. For example, the last few quarters of 2014 saw us growing sales by more than 40 percent year over year. We also grew the company in terms of people, with the number of employees growing by more than 30 percent — we now number more than 400 people strong. And from a customer acquisition and retention perspective, we have expanded beyond 5,000 customers and have a customer retention rate of 97 percent. Net net 2014 was the year we continued our great sales momentum, invested in the team, and continued to make customers happy.
Calendar year 2014 was also a milestone year for us in other ways. We won a number of awards, including being listed on the JMP Securities “Hot 100” list of Best Privately Held Software Companies; being named to the Inc. 5000 list; being recognized among the Fastest Growing Private Companies by Silicon Valley Business Journal; being named a Deloitte Technology Fast 500 winner as one of North America’s fastest growing companies; and being named as the Best Security Company of the Year by SC Awards Europe.
In 2014 we also invested further in the business by raising $42 million in funding with participation by strategic investors Samsung Ventures, Fortinet Inc., and Docomo Capital. The investment from global leaders in mobile technology and network security clearly validates Centrify’s holistic and unified approach to identity management and continued disruption of the identity and access management (“IAM”) market via our Identity-as-a-Service (“IDaaS”) cloud-based offering. Speaking of IDaaS, Centrify was positioned by Gartner as a Visionary in the IDaaS “Magic Quadrant” which further validates us as a top vendor in this market, and AVG signed up as an OEM of our cloud identity offering.
We also made significant progress with our products, releasing more than 10 releases of our integrated cloud identity and enterprise mobility management offering in calendar year 2014; as well as introducing a major software release in the form of Server Suite 2014 that protects the industry’s broadest range of heterogeneous servers and applications in the data center and cloud from identity-related insider risks and outsider attacks. And we also continuously updated our industry-leading Mac management solution.
So overall a great year!
When people hear about this success, I am often asked why we are experiencing this momentum. My first response is that it takes a great team to put up this type of results, and I am grateful to be part of such a smart and hardworking team that really cares about our customers and technology. It also takes great technology that works as advertised, is differentiated from other offerings in the market, is stable and can “snap in” to a wide range of customers’ environment. So a great combination of people and rock-solid technology are the reasons we have a 97 percent customer retention rate.
Clearly you need great people and great technology to hit the type of critical mass and momentum we are seeing, but you also need to be in a vibrant and growing market where there are real pain points that need be addressed. Clearly we help address one of the biggest pain points organizations of all sizes are facing — the need to increase their cybersecurity posture against an onslaught of attacks.
The reality is that identity management is increasingly becoming one of the biggest security challenges that customers need to address. This is because the world of IT is becoming more “de-perimeterized” because of cloud and mobile. One result of this is that IT organizations no longer own the user’s end point — because of Bring Your Own Device (“BYOD”) — and no longer own the back-end resource — because of Bring Your Own Application (“BYOA”) and growing deployments of both Software- and Infrastructure- as-a-Service.
This in turn means that securing users’ identities are now dramatically rising in importance from a security perspective. At the same time, traditional IT security products such as anti-virus and firewalls are frankly no longer as applicable in a world in which users are no longer inside the firewall and are now using their iPad at Starbucks to access Salesforce, Concur, Google Apps, etc. Therefore, making sure the user’s identity is secure (i.e. users’ passwords are not hacked) and that users can get secure access anywhere and on any device are now top priorities vis a vis security.
As a result, we are very well positioned vis a vis other identity vendors in that we address the identity needs of both end users and privileged IT users, and do so through a single platform that spans across cloud, mobile and data center. This makes us unique, and coupled with our great people and technology, and being considered a “must have” solution in a market where organizations need to address significant challenges, will hopefully continue to drive future growth for years to come.