The third quarter, which ended 30 April 2021, saw Cohesity firing on all financial cylinders:
• Strong subscription business: Cohesity achieved a nearly 80% increase year-over-year YoY (Q3/Q3) in annual recurring revenue (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% in Q3, a benchmark for leading subscription/SaaS companies. This means that ARR from Cohesity's existing customer set grew more than 30% over the last 12 months.
• Rapid customer growth: Cohesity saw more than a 40% increase YoY (Q3/Q3) in the number of customers doing business with the company, bringing its customer count to nearly 2,500 globally. In Q3, Cohesity recorded its largest transaction from a single customer in company history.
• Strong traction across verticals and the Fortune 500: The company added 30 financial services customers to its roster in Q3, bringing the total number of customers in that vertical to nearly 350 globally. The company saw a nearly 40% increase YoY (Q3/Q3) in the number of Fortune 500 accounts doing business with Cohesity. Cohesity customers include three of the top five pharmaceutical companies globally and two of the top five Fortune 500.
• Triple-digit growth in multimillion-dollar deals: Cohesity realised a 73% increase YoY (Q3/Q3) in the number of customers that spent between US $1 million and US $5 million on Cohesity software in total lifetime spend, and a 333% YoY (Q3/Q3) increase in customers with more than US $5 million in total lifetime spend.
• Strong partner momentum: The company saw more than a 20% increase YoY (Q3/Q3) in the number of partners actively selling Cohesity. The average contribution per partner (total bookings divided by the number of partners) grew 25% during the same time period of the prior year. These metrics indicate that not only are more partners selling, but their contribution is increasing.
"Our record-breaking results show that more businesses are trusting Cohesity to manage their data in a world in which hybrid cloud is the norm, ransomware attacks are soaring, and the need to derive value from data has never been greater," said Cohesity CEO and founder Mohit Aron.
"Customers are also embracing Cohesity because we give them the flexibility to manage data their way — either directly, via our as-a-service offerings, or a combination of both — all through one platform with one user interface. No other vendor today offers this type of choice and radical simplicity."
"Cohesity is the multicloud data management company to watch," said Sequoia Capital partner Carl Eschenbach. "With a very healthy subscription business, benchmark net expansion rates, and a rapidly growing customer base and partner ecosystem, the company is hitting the mark from every angle and the future looks very bright."
Third quarter 2021 milestones
In its third quarter of 2021, Cohesity customers demonstrated resilience against ransomware attacks as the company unveiled new innovations that propel modern data management.
• Healthcare Provider Rapidly Recovers Data with $0 Ransomware Payment: After being hit by a ransomware attack, Sky Lakes Medical Center relied on Cohesity's anti-ransomware capabilities to successfully recover all of its servers and applications -- without paying a penny of the ransom. Not only did the effort save the healthcare provider money and preserve trust in its systems, it also helped the company treat patients largely without disruption, potentially saving lives.
• Sustained Focus on Security: Cohesity announced its strategic partnership with In-Q-Tel, a not-for-profit strategic investor that invests in innovative technology solutions to support the national security communities of the U.S. and its allies. As part of this partnership, In-Q-Tel has invested in Cohesity. Cohesity also expanded its C-suite with the addition of Brian Spanswick, the company's first chief information security officer. Spanswick hosted an expert conversation with the Secret Service on tips to prevent ransomware.
• SaaS expansion to Canada: Cohesity announced the general availability of DataProtect delivered as a service to Canadian customers. This backup as a service (BaaS) offering empowers Canadian customers to focus on managing their data while Cohesity takes care of the underlying infrastructure hosted on AWS.
• Comprehensive Support for Microsoft 365: With the Cohesity Pegasus 6.6 release, Cohesity broadened protection for Microsoft 365. Cohesity now supports Exchange Online, SharePoint Online, OneDrive, Public Folders, Microsoft Teams, and Microsoft Groups. Cohesity is delivering SLAs that extend well beyond Microsoft's 30-day defaults.
• Data Management Training and Certifications: Every industry is looking for IT professionals who can modernise data infrastructure, protect and recover from cyberthreats, and do more with data. To address the growing need, the company launched Cohesity Academy, a comprehensive data management training and certification program, that enables IT professionals to advance their skills and expertise, which can also help companies achieve critical business outcomes.
• Industry Accolades: Cohesity was named a Customers' Choice in the 2021 Gartner Peer Insights Voice of the Customer: Distributed File Systems and Object Storage, following being named Customers' Choice in the Gartner Peer Insights Voice of the Customer: Data Center Backup and Recovery Solutions. Cohesity was also featured among CRN's Coolest Cloud Companies for 2021.
"Cohesity's platform offers a flexible, software-defined approach for creating a unified data layer that consolidates data across hybrid and multicloud infrastructure and addresses the data fragmentation problem for enterprises," said In-Q-Tel senior partner Brinda Jadeja.
"The visibility, security, and control provided by Cohesity's data management platform are essential for protecting sensitive data. These capabilities make Cohesity's solution well suited for securing and managing data in the diverse operating environments of the U.S. intelligence and defence communities."
Cohesity radically simplifies data management. We make it easy to protect, manage, and derive value from data – across the data centre, edge, and cloud. We offer a full suite of services consolidated on one multicloud data platform: backup and recovery, disaster recovery, file and object services, dev/test, and data compliance, security, and analytics – reducing complexity and eliminating mass data fragmentation. Cohesity can be delivered as a service, self-managed, or provided by a Cohesity-powered partner.