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Triple-Digit Growth in 2020 for Code42

Growing annual recurring revenue by 100% and doubling security customer base

Code42 Software, Inc. is beginning 2021 with momentum in its security business, growing annual recurring revenue more than 100% and doubling its security customer base in 2020.

As it continues to set new standards for insider risk management, by protecting data from exfiltration without blocking collaborative work, it expects to deliver more than 100% growth across its security business in 2021.

Data today is on the move like never before. It’s being uploaded, shared, synced and emailed at every turn. Unfortunately, security teams’ traditional response – to block that movement – is ineffective and counterproductive,” said president and CEO, Joe Payne. “Security leaders have a tremendous opportunity to rebuild security cultures rooted in collaboration and focus on meeting employee needs as they continue to evolve.

The company closed out 2020 with strong tailwinds coming from its security business. It achieved milestones during the year, which included the launch of its Incydr security solution, new strategic technology partnerships and integrations, a leadership team and third-party recognitions. Many of these same forces are expected to continue to play pivotal roles in firm’s future growth.

With mounting evidence of risk from insiders on the rise, now is the time to rethink outdated security practices, like blocking and data classification. Employees need fast access to data and the ability to share freely with trusted parties; Code42’s approach to insider tisk management puts those needs at the center without compromising organizational security,” continued Payne.

Delivered Innovative Insider Risk Management Solution
Code42 delivered technology solutions, partnerships and integrations that help organizations recast their insider risk strategies to be compatible with the cloud-based tools that power innovative, productive, distributed workforces.

In the past year, Code42:
• Introduced Incydr, a new SaaS offering that protects organizations’ IP, source code and trade secrets. The data risk detection and response solution is built to mitigate exposure from data exfiltration activities happening via personal email, cloud apps, AirDrop, USB and others. It directly addresses the gaps in traditional security solutions by eliminating reliance on classification-based detection and instead detects Insider Risk Indicators (IRIs) by file, vector and user characteristics and activities. IRIs are used to prioritize the risks that matter, so Incydr can expedite response.
• Received FedRAMP Authorization. Code42 is now available on the FedRAMP Marketplace and for use across the federal government.
• Launched the Insider Threat Remediation content pack in the Palo Alto Networks Cortex XSOAR Marketplace. The content pack provides customers with a playbook that automates and speeds insider threat incident response and remediation.
• Expanded its strategic partnerships and integrations with a growing portfolio of SIEM providers, including Exabeam, Sumo Logic, and LogRhythm.
• Earned 16 industry awards throughout 2020 for its innovative insider risk management solution and approach, including a CyberDefense Magazine InfoSec Award for Best Insider Threat Detection, a Cybersecurity Excellence Award for Best Insider Threat Solution, and a Golden Bridge award.

Introduced New Approach to Insider Risk Management
Through its firm belief that traditional data loss prevention systems fall short at securing data from insider risks, the company introduced a new approach to solving an age old problem. The approach resonated with influential analysts and customers alike.

In 2020, the company:
• Was identified as a Representative Vendor in the Gartner 2021 Market Guide for Insider Risk Management Solutions report. In defining the 3 core mitigation goals for insider threats, Gartner says they are “intended to: deter the individuals from wanting to do it in the first place; detect the activity; and disrupt the effort.” Notably, Gartner omitted “blocking” as a mitigation goal, which signals a significant sea change in data security.
• Supported insider risk management programs for 18 of the world’s most valuable brands, and more than doubled its base of security customers during 2020.
• Published Inside Jobs: Why Insider Risk Is the Biggest Cyber Threat You Can’t Ignore. The book explores the problem of insider risk – what’s driving it and what business and security leaders can do to keep their workforces productive and their data safe. InsideJobs can be found on Amazon.com.
• Hosted the inaugural Insider Risk Summit in partnership with Crowdstrike, Cybrary, Duo Security at Cisco, Exabeam, Okta, Optiv, Palo Alto Networks, Rapid7, Splunk, Sumo Logic and The CyberWire. The virtual event explored new strategies for detecting and mitigating insider threats to data.

Maintained Commitment to Growth, Excellence and Community
The firm made strides in its growth as a company and its focus on giving to the causes that its employees find meaningful.

In 2020, the company:
• Nearly doubled its sales force to meet the high demand for its market-defining insider risk management solution, Incydr.
• Named progressive human resources executive Lisa Woodson as chief people officer.
• Strengthened its channel-first commitment with the appointment of veteran security leader Faraz Siraj as VP of channel sales.
• Continued its support of the Pledge 1% movement, vowing to donate 1% of time, 1% of equity and 1% of future profits to support non-profit organizations.

Published Research on the Insider Risk Market
Code42 issued 2 volumes of its Data Exposure Report, primary research projects focused on attitudes toward insider risk and insider threat and how prepared companies are to mitigate the data security challenges.
• One of the studies found that Covid-19 created a perfect storm for insider risk growth. It showed that organizations are unprepared to protect their data and allow massive insider risk problems to persist with the rise of remote work.

  • Employees are 85% more likely today to leak files than they were pre-COVID.
  • 59% of IT security leaders say insider threat will increase or increase in the next 2 years.

• The other study found that cloud-based collaboration technologies and workforce turnover have become major drivers of data exfiltration as insider threat programs have failed to keep pace with today’s digital workplace.

  • 36% of workers believe that the increased emphasis on file sharing has made them more complacent about data security.
  • 51% of the workers surveyed believe that the risk to corporate data when employees depart is bigger than organizations think.