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 2023 was estimated to be USD 19.3 billion. The Advanced Authentication is expected to continue to grow by approximately 13.6 percent per year up until 2027. The surge in advanced authentication is driven by escalating cyber threats, geo- political instability, regulatory demands, and the shift to advanced authentication in the workforce. Yubico is positioned to address compliance needs, as an increasing number of companies are exploring a move towards user-friendly, passwordless login models.
Compelling value proposition and clear competitive advantages
Yubico’s authentication solutions provide high security through phishing-resistant MFA and have been demonstrated at scale. YubiKeys have a strong track record of zero successful known hacking attempts, to date. Additionally, Yubico’s high-quality hardware and firmware rely on a global secure supply chain, which the company fully controls. Yubico’s 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. By establishing strategic partnerships, our solution is becoming a recognized standard in the Advanced Authentication segment. This widespread adoption positions us as a key contributor to shaping industry- wide cybersecurity practices, emphasizing the company’s pivotal role in setting new standards across various sectors. 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
Yubico has over the years shown a strong net sales development with a CAGR of 36 percent per year between 2019 and 2023. The company has also held a stable gross margin of around 85 percent since 2020 and showcased a positive EBIT since 2022. 2023 continued on a solid note with net sales growth of 18 percent compared to 2022 and an adjusted EBIT margin of 15 percent compared to 14 percent the year prior. In 2020 Yubico launched its subscription-based model, YubiEnterprise Services, which has grown to 15 percent of bookings in 2023 and is expected to increase going forward creating a recurring revenue stream.
Proven strategy supported by strong underlying pillars as well as multiple growth vectors
Our strategic growth plan centers on leveraging our key strengths, including a global bluechip 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 and selective acquisitions. Yubico also aims to enhance customer loyalty and retention by expanding its subscrip tion offerings to both new and existing clients.