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Highlights
- The global cyber security market is expected to reach US$266 billion by 2027
- In the coming decade, cybersecurity firms can benefit from increased digitalization
- At the time of writing, Absolute Software's market cap was C$ 613.8 million
Investors should constantly think about getting exposure to businesses operating in quickly growing addressable markets, such as cybersecurity since these businesses have the potential to grow their sales and profits steadily while generating outsized returns.
The global cyber security market is expected to reach US$266 billion by 2027, up from US$173.5 billion in 2022, according to a MarketsandMarkets analysis, representing annual growth rates of about 9%.
In the coming decade, cybersecurity firms can benefit from increased digitalization, an increase in data breaches, and a shift towards remote labour.
Let's see how this Canadian cybersecurity stock is performing and whether you should explore it or not:
Absolute Software Corporation (TSX:ABST)
Absolute Software Corp has developed, marketed, and made available a cloud-based endpoint visibility and control platform to monitor and secure computer devices.
In Q3 2022, the company recorded a 15 per cent year-over-year (YoY) growth of 15 per cent. Meanwhile, the revenue of Absolute Software was US$ 57.2 million, which increased by 17 per cent from Q2 2022.
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The cybersecurity company's adjusted revenue jumped nine per cent YoY to US$ 57.7 million. Also, during Q2 2023, a quarterly dividend of C$ 0.08 per share was paid to common shareholders.
The adjusted EBITDA of the company stood at US$ 12.8 million, and the net loss amounted to US$ 7 million.
Bottom line
In the fiscal year 2023, the adjusted revenue is expected to be in the range of US$ 231 million to US$ 235 million. If the company clocks the expected revenue, it would represent a 10 to 12 per cent growth.
At the time of writing, the company's market cap was C$ 613.8 million, and the stock price was C$ 11.63 apiece.
Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
