Brandshield annual recurring revenues grow amid pandemic

Cybersecurity firm Brandshield Systems said on Thursday that it had seen a marked increase in annual recurring revenues in 2020.

Brandshield said annual recurring revenues were up 71% year-on-year at $3.27m, driven by an 85% increase in new business ARR.

The AIM-listed group said the increase annual recurring revenues had been supported by through the "expeditious use of cash resources" in targeted marketing and an increase in headcount, particularly in the sales and marketing functions.

Brandshield added that the early part of 2021 had seen continued strong growth in ARR, with new business signed being "significantly ahead" of January 2020.

Chief executive Yoav Keren said: "The explosion of online commerce through 2020 cannot be understated. eCommerce, as a percentage of total commerce in the US, has increased from 14% in Q2 2019 to over 20% in Q2 2020. This trend is here to stay and the associated increase of fraudulent activity, targeting this phenomenon, is being recognised by brands across the globe as a clear and present danger to their reputation, customer service resources and bottom line.

"The impact of our recent admission to trading on AIM is already being seen in terms of credibility amongst potential clients; the associated fund-raising has also provided a strong platform for continued growth through marketing globally."

As of 1140 GMT, Brandshield shares were up 1.05% at 24.0p.