Sophos says cyber attacks like Petya and Wannacry ransomware are great for business

Sophos has had a lift from global cyber attacks and that’s set to continue.

The figures

Revenue for the first quarter jumped 11.3 per cent to $141.8m, or 14 per cent on a constant currency basis, while operating profit declined more than 63 per cent to $3.4m.

Billings for the period of increased 16 per cent (19 per cent on constant currency) in the three months to the end of June to $164.3m ahead of expectation. America was the best performing region, up by a quarter, with Europe and Asia both experiencing double digit growth.

The firm’s decline in profit this quarter was offset by a growth in subscription billings, revenue from which is expected to pay off in future quarters.

Why it’s interesting

Cyber security firms are benefiting from several high-profile attacks in recent months, putting the issue of security on or higher up many businesses agenda.

Sophos was one of several firms to get a boost following Wannacry, the ransomware attack that hit the NHS and others earlier this year. And that looks set to continue.

Since floating in 2015, Sophos shares have gained 94 per cent.

What Sophos said

Chief executive Kris Hagerman said:

The demand environment in cybersecurity remained strong, particularly in the end user segment, where we saw continued significant customer and partner interest in our leading next-generation anti-ransomware solutions, with awareness further raised following recent high-profile global attacks like Wannacry and Petya.

We are well positioned to continue our momentum and deliver against our full-year expectations and we are pleased to reaffirm our outlook.