Adoption of Webroot Next-Generation Endpoint Security Solutions Propels Revenue in Second Fiscal Quarter

Double-Digit Revenue Growth, Expansion of Channel Partnerships, and Rapid Adoption of Webroot® Threat Intelligence by Other Security Vendors Contribute to Strong Growth

BROOMFIELD, CO. - February 9, 2016

Webroot, the market leader in next-generation endpoint security and cloud-based collective threat intelligence, today announced strong momentum in its second fiscal quarter, which ended December 31, 2015. Highlights from the second quarter include double-digit year-over-year revenue growth, substantial expansion of the company’s business segment sales and growth of its network of strategic security alliances and channel partners.

Double-digit Growth in New Business Continues

Webroot’s second fiscal quarter saw strong bookings growth. The addition of new customers fueled double-digit, year-over-year growth across the company's target markets. Bookings grew 47 percent in the business segment with 97 percent growth in the OEM sub-segment and 7 percent in the consumer segment compared to the second fiscal quarter of 2015. The company was profitable and substantially added to cash reserves in the period.

"This was another good quarter of growth for us, across all markets and geographies," said Dick Williams, CEO at Webroot. "Acceptance of our next-generation endpoint security solutions for businesses and consumers is driving growth and profitability. With 87,000 Business customers, we are the proven next-generation cybersecurity choice for defending against modern malware. Our Webroot Threat Intelligence Platform is the gold standard for threat intelligence in the security industry and this has led to several new revenue-generating partnerships with leading security vendors."

Strategic Security Alliances and Partnerships

Webroot’s second quarter growth was also benefited by partnering with Virgin Media to deliver Web classification data for Virgin Media Parental Controls integrated with the Webroot BrightCloud® Web Classification Service. The Web classification data from the Webroot Threat Intelligence Platform lets Virgin Media Parental Controls to establish granular policies that enable parents to selectively allow, block, or isolate websites that their children may find in their web surfing. Virgin Media joins a long list of other security providers who use threat intelligence from Webroot as the content that drives the effectiveness of their solutions.

In addition to integrated solutions, Webroot continued strong growth in endpoint security, recently partnering with Laplink, a global market leader in PC migration. The two companies boosted their consumer offerings by bundling Webroot SecureAnywhere® Internet Security with PCmover Express to make cybersecurity and new PC setup easy—just in time for the holiday shopping season.

Thought Leadership

During the quarter, cloud-based security solutions from Webroot received industry recognition for superior functionality and performance. Webroot was again identified as a "Trail Blazer" in the Endpoint Security – Market Quadrant 2015 report by The Radicati Group. The independent analysis recognized Webroot SecureAnywhere Business Endpoint Protection and Webroot SecureAnywhere Business Mobile Protection for their real-time, cloud-based approach to detecting and preventing malware.

"Cloud-based endpoint security solutions are increasingly gaining ground to help manage growing mobile workforces, which need quick, secure access without increased complexity," said Sara Radicati, president and CEO of The Radicati Group. "As a trail blazer, Webroot offers highly innovative solutions well suited for small and medium sized organizations looking for solid, easy to manage protection."

Webroot also released the results of its SMB Threat Brief, "Are Organizations Completely Ready to Stop Cyberattacks?" The report reveals that many small to medium sized businesses (SMBs) feel they lack the resources to protect themselves against malware attacks. In partnership with Wakefield Research, the study indicates just 37 percent of IT decision makers surveyed across the US, the UK, and Australia believe their organizations are completely ready to manage IT security and protect against threats.

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