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Wednesday, 31 March 2021 10:56

Cohesity announces a US$3.7 billion valuation – US$1.2 billion more than its valuation less than 12 months ago

Cohesity CEO and founder Mohit Aron Cohesity CEO and founder Mohit Aron

Company News: Cohesity today announced a new company valuation of US$3.7 billion, which is US$1.2 billion higher than its valuation less than 12 months ago. This dramatic growth in valuation continues to validate the incredible trajectory and momentum Cohesity is seeing as the modern multicloud data management company.

The valuation was established in line with a US$145 million tender offer made by investors to Cohesity employees who want the option to sell a small portion of their equity for liquidity. This non-dilutive transaction was led by Steadfast Capital Ventures and supported by a syndicate of new and existing investors, including Premji Invest.

"We are pleased to enable this liquidity opportunity for our employees," said Cohesity CEO and founder Mohit Aron. "We believe the oversubscribed, non-dilutive tender offer based upon this increased company valuation speaks volumes about Cohesity's performance and future outlook as the leading, modern data management company."

The valuation comes as Cohesity is reporting record-breaking results from its fiscal second quarter ending 31 January 2021. The company saw significant year-over-year (YoY) growth in annual recurring revenues (ARR), a continued surge in customer wins globally, and a rapidly increasing number of customers spending US$5 million or more in total lifetime spend on Cohesity software. Cohesity also saw exceptional traction across its partner and service provider ecosystem.

"Cohesity is firing on all cylinders with significant increases in annual recurring revenues, exceptional customer and partner momentum, and impressive growth in overall customer spend," said Steadfast Capital Ventures managing director and head of venture capital Karan Mehandru. "The company also continues to introduce software innovations that are transforming data management – including data management as a service. This game-changing SaaS technology is unleashing new opportunities for midsize and enterprise customers to simplify data management and do more with their data. At Steadfast, our goal is to partner with exceptional entrepreneurs building iconic and durable companies that are built to last, and our partnership with Mohit and the Cohesity team is a shining example of that strategy at work."

"Cohesity continues to disrupt the data management market. The Cohesity Helios multicloud data platform uniquely empowers organisations to easily manage their data, mitigate the risks of ransomware attacks, eliminate infrastructure silos, and solve mass data fragmentation," said Premji Invest US managing partner Sandesh Patnam. "Given Cohesity's continued innovation, excellent NPS customer support scores, strong leadership, and vision for the future, we are very optimistic about Cohesity's continued success in the market. We believe the new valuation is a fraction of the value Cohesity will be worth long-term."

Expanded company valuation follows strong Q2 results

The following metrics highlight record-breaking results Cohesity achieved during Q2, its most recently completed quarter.

• Exceptional ARR growth: Cohesity achieved a nearly 90% increase YoY (Q2/Q2) in ARR, further emphasising the success of the company's subscription-based software model.

• Strong net expansion rate: Cohesity's net expansion rate – or the rate of expansion net of churn from existing customers over the last year – continues to exceed 130%, a benchmark for leading subscription/SaaS companies. This means that ARR from Cohesity's existing customer set grew over 30% over the last 12 months.

• Rapid customer growth: Cohesity saw a 50% increase YoY (Q2/Q2) in the number of customers doing business with Cohesity, with rapid adoption in the Americas, EMEA and Asia Pacific/Japan regions. More than 2,300 customers trust their data with Cohesity.

• Continued strength among the Fortune 500: Cohesity customers include two of the top five Fortune 500, two of the top five U.S. banks, more than 300 financial services organisations globally, and three of the top five pharmaceutical companies globally.

• Massive growth in customer spend: Cohesity realised an 84% increase YoY (Q2/Q2) in the number of customers that spent between US$1 million and US$5 million on Cohesity software in total lifetime spend, and a 300% YoY (Q2/Q2) increase in customers with more than $5 million in total lifetime spend.

• Success with channel partners: The number of partners that have booked US$1 million or more in business with Cohesity grew 46% YoY (Q2/Q2). Cohesity is not only expanding its base of partners, but going significantly deeper with partners as more customers embrace Cohesity's multicloud platform and data management offerings.

• Record-breaking quarter with service providers: Cohesity realised its biggest quarter ever with service providers, seeing a 208% growth in bookings YoY (Q2/Q2). Cohesity also signed 16 new service providers globally in Q2, including Move AS, NetNordic, and US Signal.

Cohesity customers span a wide array of verticals including financial services, healthcare, government/ public sector, pharmaceutical, retail, technology, transportation, education, and media and entertainment. Customers include: Cisco, Northumbria Police (UK), Novartis, Proliance Surgeons, Siemens, SiteOne Landscape Supply, Sky Lakes Medical Center, Stockport NHS Foundation Trust , the National Aeronautics and Space Administration (NASA), the San Francisco Giants, the US Department of Homeland Security, and US Department of Labor.

Q2 product innovations and industry accolades

Cohesity introduced innovative SaaS offerings in Q2 and received accolades for its cloud leadership, unique partner program, and recognition from industry analyst firms.

• New SaaS offerings: In December, Cohesity announced the general availability* of Cohesity DataProtect delivered as a Service. This SaaS-based offering, the first of many to come as part of Cohesity's comprehensive Data Management as a Service (DMaaS) solution, gives customers an easy way to make sure their on-premises and cloud-based data is backed up and protected.

• Partner Program of the Year: In December, Cohesity won the "Partner Program of the Year" award from Channel Partner Insight (CPI). These annual awards recognise the companies that are powering the U.S. IT channel.

• Customers' Choice: In January, for the fourth time in a row, the company was named a Customers' Choice in the Gartner Peer Insights 'Voice of the Customer'" Data Center Backup and Recovery Solutions. Cohesity was the only Customers' Choice vendor recognised in the following categories: Global Enterprises, Healthcare, and Services industries.

• Cloud leadership: In February, CRN named Cohesity one of its 100 Coolest Cloud Companies for 2021 for the second year in a row. The annual list recognises the leading cloud technology providers in five critical categories: infrastructure, monitoring and management, security, storage, and software.

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Stephen Withers

Stephen Withers is one of Australia¹s most experienced IT journalists, having begun his career in the days of 8-bit 'microcomputers'. He covers the gamut from gadgets to enterprise systems. In previous lives he has been an academic, a systems programmer, an IT support manager, and an online services manager. Stephen holds an honours degree in Management Sciences and a PhD in Industrial and Business Studies.

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