Egnyte Records 22% Y/Y Growth From 2Q19 to 2Q20 and on Path to IPO

Egnyte, Inc. announced revenue growth in 1H20, despite the ongoing challenges of the pandemic crisis.

It is posting 22% Y/Y growth from 2Q19 to 2Q20, steadily increasing revenue per customer and reporting positive EBITDA.

Despite every aspect of business and personal life being reshaped by Covid-19, the difficulties have also created opportunities for companies like Egnyte that are helping customers reimagine the world of work. The firm doubled its customer base at the highest-tier enterprise plan, which applies ML to help companies govern content, including in public cloud storage, cloud office apps, and on-prem file shares.

“The convergence of collaboration, governance and increasingly distributed workforces increases Egnyte’s market opportunity and unique position to transform how we work and empower organizations to maximize value from their content,” said Vineet Jain, CEO. “Our team has done an extraordinary job in leveraging ML extensively, and elements of AI to build a secure content platform for our enterprise customers.”

As part of its growth strategy, the company appointed Suzanne M. Colvin as CFO. Prior to that, she spent 6 years at Napster, Inc. where she was promoted to CFO after holding various finance leadership roles. She also spent 9 years at Verifone, most recently as VP corporate controller and chief accountant. She brings experience in planning, accounting and operations from global, industry-leading technology companies, and she will be responsible for the company’s finance, treasury, tax, accounting and administrative operations.

Additionally, Jeff Kalowski, a veteran public accounting executive for the high-tech industry, joins as chair of audit committee. He is currently CFO of Rapid 7, and previously served as CFO at Boston, MA-based cybersecurity company Imprivata where he led the company through a public offering in 2014. Earlier in his career, he was the CFO at ProfitLogic, Inc., and a variety of enterprise software and hardware technology companies, including Torrent Systems, Beyond Incorporated, and Magna Computer Corporation.

“We’re delighted to have Ms. Colvin join as CFO, and have an expert like Mr. Kalowski step into the role of audit committee chair,” said Jain. “They are invaluable additions to the team as we continue to strengthen and mature our internal processes for market expansion and our path to IPO.”

Facts and Figures:
• Annual recurring revenue grew 22% Y/Y from 2Q19 to 2Q20
• Customer retention, with 112% dollar based recurring revenue
• Healthy balance sheet and slow burn rate: More than 50% of $75 million Goldman Sachs investment from 2018 still unspent
• 35% Y/Y growth in number of files under management
• New connected data sources: Amazon S3, Box, Dropbox, and Google Cloud
• Reached $100 million annual recurring revenue milestone at the end of 2019
• Disciplined execution: One of the few companies in Silicon Valley with a long track record of being EBITDA positive, and remains so during these times of health and economic crises

More than 16,000 businesses trust Egnyte to enhance employee productivity, protect business-critical data, and reduce file-sharing cost and complexity.