According to a recent report by Visiongain, the global mobile security market was estimated to be worth $3.49 billion in 2013. The market is expected to show rapid growth in the next few years driven by rapid adoption of mobile device technology in emerging markets. IDC estimates that by the end of the current year, more than 1 billion mobile devices will be used within organizations by the end of this year.
Good Technology’s Offerings
Sunnyvale, California-based Good Technology focuses on providing mobile security solutions to organizations. Through their products, organizations can successfully adopt programs like bring your own device (BYOD) and enable employees to securely access data on their mobile devices. They operate on a principle of Containerization that allows them to secure corporate data without having the need to track the entire device.
Their mobility platform enables organizations to create and manage secure conversations across multiple data, applications, and devices, whether in the cloud or on premise. The strength of their products can be gauged from the fact that their platform has been deployed by 100% of the Fortune 100 commercial banks and 100% of aerospace and defense firms.
Earlier this year, Good Technology bought BoxTone, a company that helps organizations manage, monitor, and secure employees’ mobile devices. Terms of the deal were not disclosed, but analysts estimate that the company was bought for $77 million. The acquisition is expected to help Good Technology address BlackBerry customers who use BoxTone to manage their security.
Good Technology’s Financials
Good Technology earns revenues through a subscription and a one-time license charge they levy for their tools and support services. Their revenues have grown from $85.3 million in 2011 to $160.4 million in 2013. Over the same period, net losses have increased from $41.0 million to $118.4 million. The continued losses are attributed to increase in research and development and sales and marketing efforts. In 2013, of the $118 million in losses, Good Technology had spent $113 million in sales and marketing alone.
By segment, recurring revenues have grown from $7.2 million to $46.7 million while perpetual license revenues have increased from $24.9 million to $52.2 million. IP revenues have reduced from $27.2 million to $23.3 million while other revenues have increased from $26.1 million to $38.2 million.
Since their inception in 1996, Good Technology has raised over $211 million in venture funding from investors including GKM, Meritech Capital Partners, Blueprint Ventures, ePlanet Ventures, Oak Investment Partners, Rustic Canyon Partners, Draper Fisher Jurvetson (DFJ), DFJ Growth, VantagePoint Capital Partners, Rustic Canyon Partners, Crosslink Capital, Advanced Equities, Benchmark, Kleiner Perkins, and Caufield & Byers. Their last round of funding was held in December 2013 when they raised $65 million at an undisclosed valuation.
The company is now looking to go public and recently filed their papers to raise $100 million in an IPO. Analysts estimate that the company is now worth more than $1 billion.