Annual Recurring Revenue Up 125% in 2021 for Code42

Code42 Software, Inc. is beginning 2022 with continued momentum in its Insider Risk Management business, growing annual recurring revenue more than 125% in 2021.

It is arming organizations with the tools and education they need to make a shift in the ways company data is protected from theft and loss in today’s collaborative and remote work environment – this focus will continue to drive firm’s growth in 2022.

“Today, when an employee leaves your organization, there is a one-in-three chance that they will take IP with them. In fact, employees are 85% more likely to leak source code, product plans and customer information than they were even two years ago. Insider risk is not a new data security challenge, but since the beginning of the pandemic, it is a far more urgent one,” said president and CEO Joe Payne.

The company carried the triple-digit growth trend it saw in 2020 throughout 2021 and closed the year with strong tailwinds. In 2021, it achieved milestones during the year, including the launch of the Instructor microlearning solution, innovative advancements to the Incydr product, and new technology partnerships and integrations. It expects many of these same elements to continue to contribute to its future growth.

Payne continued: “The cloud-based collaboration technologies our hybrid-remote workforces rely on to stay productive are the same technologies that make it easy to expose and exfiltrate data. Incydr offers a fundamentally different approach to safeguard the data that powers innovation and growth.”

Published Research on the Insider Risk Market
The company published a number of research reports exploring why insiders expose data and the impact of those data leaks.

The research found that:
• While two-thirds of insiders take corporate data when they leave an organization, more specifically there is a one in three (37%) chance that valuable IP will be taken when an employee quits, underscoring the urgency for implementing Insider Risk Management programs while the Great Resignation sweeps across the business landscape. Furthermore, nearly three-fourths (71%) of security teams are concerned about sensitive data being stored outside of corporate storage where security teams lack visibility.
• There were 61% more data exposure events in 2Q21 than in 1Q21, revealing that data exposure peaked at the same time the US experienced a massive shift in employment, demonstrating a correspondence between employee turnover and data exposure. This data stemmed from anonymized data-exposure telemetry from over 700,000 endpoint devices using Incydr.
• Over 3-quarters of insider data breaches are non-malicious and can cost as much as 20% of annual revenue. Further, organizations experience an average of 13 data exposure events per user per day.
• Two-thirds (66%) of respondents experience data leaks due to insiders at least monthly; 71% of respondents agree that traditional approaches to DLP aren’t working; and 59% of respondents identified the need to pursue more holistic Insider Data Risk Management as part of their Zero Trust strategy.