Attractive market trends support long-term growth opportunity
Yubico operates in the Advanced Authentication market, a submarket of Identification and Access Management (IAM), whose global market size in 2024 was estimated to be USD 5.2 billion. The advanced authentication market is expected to continue to grow by approximately 13.6 percent per year until 2027. The surge is driven by escalating cyber threats, geopolitical instability, regulatory demands, and the shift to advanced authentication in the workforce. We are well positioned to meet this increase in demand.
Compelling value proposition and clear competitive advantages
Yubico’s authentication solutions provide high security through physical phishing resistant MFA and have been demonstrated at scale. YubiKeys have a strong track record of zero successful known hacking attempts, to date. Additionally, our high-quality hardware and firmware rely on a global secure supply chain that we fully control. Our products are backed by an extensive service package including flexible support, personalization services, and partners for ease of deployment, which makes our offering hard to replicate.
Trusted by global market leaders—creating a market standard for cybersecurity
We have a customer base spanning across several sectors, and clients include some of the largest global technology companies as well as governmental agencies. As a result of our strategic partnerships with global market leaders, our solution is considered a standard in advanced authentication. This positions us as a key player in shaping industry-wide cybersecurity practices. This also underlines our central role in setting new standards in different verticals. Yubico is actively working to help U.S. and EU regulators set up policies and legislation that promote cybersecurity in an efficient way.
Strong financial characteristics with an exceptional organic growth
Over the years, Yubico has shown strong net sales development, with a CAGR of 40 percent per year between 2020 and 2024. We have also had a stable gross margin of around 80 percent since 2020 and shown a positive EBIT. In 2024, net sales increased by 27 percent compared to 2023, and the adjusted EBIT margin amounted to 18.8 percent, compared to 15 percent the year before. The subscription-based model increased its share to 18 percent of bookings in 2024, and it is expected to continue to increase going forward, creating a growing stream of recurring revenue.
Proven strategy supported by strong underlying pillars as well as multiple growth vectors
Our growth strategy centers on leveraging our key strengths, including a global blue-chip customer base, extensive partner network, scalable sales model, and robust R&D capabilities. Key initiatives include expanding the current customer base, reaching customers’
customers and third-party suppliers, acquiring new customers across various sectors, and exploring new authentication solutions adjacencies through R&D. We also aim to enhance customer loyalty and retention by expanding its subscription offerings to both new and existing clients.
