Cyren Reports Dip in Revenue in Q1 2018 Results

Cyren (NASDAQ:CYRN) announced its first quarter financial results on Tuesday (May 22) where the company revealed the growth in its enterprise bookings and a dip in revenues in a year-over-year basis.

The cloud internet security solutions provider, with more than 1.3 billion users around the world, reported strong growth in its enterprise bookings at a rate of 260 percent as compared to the first quarter of 2017.

The company said that the growth was the result of continued traction with its channel partners in Europe and the US, as the company added 60 new enterprise customers and resellers during the period.

“We added several new resellers into the Cyren Cloud Security ecosystem, and we’re thrilled to have our anti-phishing technology selected by the world’s largest and most well known provider of enterprise email solutions,” Cyren CEO Lior Samuelson said in the release.

The company said that its revenues for the first quarter was US$7.6 million compared to US$8 million during the first quarter of 2017. Further, Cyren said that its GAAP net loss for the first quarter of 2018 was US$5.3 million compared to a net loss of US$2.5 million in the first quarter of 2017.

Some of the company’s highlight was the announcement of a three-year multi-million dollar agreement with Microsoft (NASDAQ:MSFT) in April,which Cyren believes will have a material impact on revenue throughout the rest of 2018.

“We believe the success that we have at Microsoft can be replicated with other large enterprise accounts and look forward to some exciting products and customer announcements on these lines in the future,” Samuelson said in the post earnings conference call.

Other highlights of Q1 as noted in the press release are the agreement with CARVIR, a global cyber security distributor and also a strategic partnership with Meta Networks, a technology leader in secure cloud native networking.

The distribution partnership with CARVIR lets Cyren provide SaaS gateway security solutions for MSPs and IT service providers while the strategic partnership with Meta Networks lets them deliver their security solutions. Cyren notes that the agreement with Meta networks will have a positive revenue impact on the second quarter.

Following Tuesday’s announcement, Cyren closed the trading at $2.85 and was up 1.79 percent over the one-day trading period.

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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.