ProofPoint, Rapid7 and CyberArk lead the field of publicly-traded cybersecurity companies

Q3 2016 financial results are in for publicly-traded cybersecurity firms.

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Three pure-play companies who are focused exclusively on hot segments in the rapidly growing cybersecurity industry -- which is predicted to see $1 trillion in global spending over the next five years -- put up big numbers in the recent quarter.

Proofpoint (NASDAQ: PFPT) grew 44 percent in Q3. On the day it announced financial results for Q3, the company also announced a definitive agreement to acquire cloud security firm FireLayers which focuses on protecting SaaS applications.

Rapid7 (NASDAQ:RPD), a leading security analytics player grew by 42 percent in its most recent quarter. The company announced a new practice area around developing and testing secure IoT devices. A speciality focus will be on the transportation industry -- where Rapid7 plans to bake security into planes, trains and automobiles.

CyberArk (NASDAQ:CYBR), grew by 37 percent in Q3.  Shortly before announcing its Q3 earnings, CyberArk announced a strategic alliance with KPMG Cyber Consulting Services. The firms have joined forces to provide a privileged account management solution aimed at CIOs battling insider threats and external attackers.

Another niche player, Mimecast, was up 29 percent in the quarter. The biggest news in the recent U.S. presidential campaign was email security, and Mimecast appears to have benefited by continuing to execute in an old space with heightened market awareness... and a new need -- email security in the cloud.

The market wasn't quite as kind to a couple bigger pure-plays, according to the Cybersecurity Stock Report, published quarterly by Cybersecurity Ventures. Wall Street hammered Fortinet stock in October when it negatively pre-announced its Q3 report, shares of Palo Alto Networks, too, crashed 10 percent when the firm missed the high-end of its fiscal Q3 guidance for the first time ever and guided to a backend-loaded January quarter. (Disclaimer: Steve Morgan is founder and CEO of Cybersecurity Ventures.)

Two big guns in the space -- Cisco and IBM -- both saw a decline in their fiscal Q3, but grew their security revenues by 11 percent apiece. That's a large gain considering the two security businesses hover around $2 billion each in revenues annually.

Symantec, Barracuda Networks, FireEye and Cyren all grew in the mid-teens for Q3 -- right around the industry average.

As a whole, publicly traded cybersecurity firms grew by more than 11 percent in Q3.

While the financial and IT analysts have varying speculations around cybersecurity market growth and spending, one thing is for sure - cybercrime damages are on rise. CSO recently shared a prediction that cybercrime will hit $6 trillion annually by 2021.

Copyright © 2016 IDG Communications, Inc.

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