25% Annual Recurring Revenue Growth in 1Q21 for Veeam

Veeam Software, Inc. announced another quarter of double-digit growth with an annual recurring revenue (ARR) increase of 25% Y/Y for 1Q21.

It kicked off 2021 with its expansion of public cloud support with the availability of new Backup for Google Cloud Platform – complementing its backup solutions for AWS and Microsoft Azure.

Backup & Replication v11 was also released in 1Q21 with an additional 200 new backup, cloud, DR, security and automation enhancements. The data protection solution for cloud, virtual, SaaS, Kubernetes and physical workloads has been downloaded by more than 130,000 users.

“The double-digit Y/Y growth across all geos provides further validation that our solutions are leading the way in the industry and providing customers simple, flexible and reliable data protection that meets their needs and helps them to achieve their business objectives. To see such increases globally is a tremendous achievement in such a challenging environment,” said William H. Largent, CEO and COB. “Thirteen consecutive quarters of double-digit growth is a testament not only to the importance of BC and data protection as companies move to the cloud, but to the reliability and value that our 400,000+ customers have trusted Veeam to provide over the past decade.”

Additionally, in the recent IDC Semi-Annual Software Tracker for Data Replication & Protection 2H20[i], the software vendor had the fastest revenue growth, both sequentially (21.5%) and Y/Y (17.9%) in 2H20 among the top 5 vendors, all other vendors combined and overall market average. In this period, it became the #2 provider WW in terms of overall revenue with Y/Y growth in 2H20 with more than 17.5% percentage points above the market average.

“In addition to the major release of v11, our product roadmap for 2021 will further expand our offerings with the top cloud providers – AWS, Microsoft Azure and Google – and Kubernetes, as we remain agile and integrate new technologies,” said Danny Allan, CTO and SVP of product strategy. “Our recent product launches are best-in-class in quality and quantity, and provide our customers with data protection and recovery. More and more organizations are accelerating their modern data protection strategies and Veeam is committed to supporting them along the journey.”

1Q21 Highlights

• With more than 130,000 unique downloads of Backup & Replication v11 since general release in February 2021, the product averages more than one download per minute. The new 4-in-1 solution combines backup, replication, storage snapshots and CDP to protect each phase of the data life cycle, while handling all the complexities of a multi-cloud environment for AWS, Microsoft Azure and Google Cloud Platform.
• Backup for Microsoft Office 365, Veeam’s fastest growing product, reported 156% growth Y/Y in 1Q21. It has now been downloaded by more than 175,000 organizations with 5.8 million users under paid contract.
• The company continues to release new features and enhancements for enterprise environments, which has resulted in +246% growth Y/Y in large-deal transactions.
• Veeam Universal License (VUL), at portable license that enables IT agility and workload mobility for multi and hybrid cloud enterprises, accounted for 88% growth Y/Y.
• The firm now counts 82% of the Fortune 500 and 69% of the Global 2000 as customers. New 1Q advocates include PUMA,  Evergy, SodaStream, Interquell GmbH, Baloise Group, Golfzonk, Coop Danmark, Kinepolis Group, McCarthy Buildings Companies, Inc., Helsingor Municipality, Yerevan Brandy Company, Volkswagen Argentina, NTT Data Corp., Japanese Racing Association, Eastern Ontario Health System and Spanish National Institute of Aerospace Technology (INTA).

“Despite the challenges and uncertain business climate that came with the Covid-19 pandemic, Veeam generated enviable revenue growth in 2020. The company continued to focus on its core backup product suite while also staking a position in the emerging container backup market with its acquisition of Kasten. Their recent release of V11 provides customers with new functionality that will help mitigate downtime and data loss through disaster preparedness and ransomware protection,” said Phil Goodwin, research director, IDC.

“Forever Faster is PUMA’s mantra. We want to be the fastest sports brand in the world in all areas. That also includes IT. We are accelerating the digitalization of our global business processes and need solutions that can keep up with the pace of this transformation. We can always rely on Veeam for this. The company’s backup solutions secure our rapidly growing global IT infrastructure, enable ultra-fast recovery of applications and data, and also pave the way to the cloud for us,” said Hermann Müller, teamhead IT network operations, PUMA SE.

“Veeam’s enterprise scalability keeps our IT systems available. We meet SLAs with our business units, they deliver innovative offerings to our customers and our company maintains a solid edge over competitors,” said Thomas Salvisberg, IT service continuity manager, Bâloise Group.

“As Denmark’s leading consumer goods retailer with more than 1.5 million members and 40,000 employees, we owe our customers uninterrupted access to our shops and products, while ensuring our core IT systems are protected at all times. Veeam Backup Enterprise Plus offered us scalability providing fast backups on big data volumes. Veeam helps us to fulfill our high demand for professional IT protecting one of the largest installations in Northern Europe,” said Nick Ravn, manager, server and data center services, Coop Denmark A/S.

“Evergy is part of the national electricity grid, so reliability, resiliency and cybersecurity are always top of mind. Veeam helps us check those boxes and ensure we can deliver critical services to our customers,” said Rob Adams, manager, systems engineering, Evergy.

“The current pandemic in particular shows how valuable Veeam is for our company. We use the solution to protect our data and the processes that depend on it – no matter where our users work and whether their applications run in the data center, on a laptop or in the cloud,” said Klaus Gruber, IT systems administrator, Interquell GmbH.

“One of the reasons we can entertain 40 million customers each year is because Veeam protects the IT systems that keep our cinemas going strong,” said Bjorn Van Reet, CIO, Kinepolis Group.

“Veeam is the only solution we considered that provides more than backup. Veeam extends DR to Azure so we can restore critical systems fast,” said Hen Ron, global infrastructure manager and chief information security officer, SodaStream International Ltd.

[i] Source: IDC, Semi-Annual Software Tracker, 2H20 (for IDC clents only)