Cybersecurity business Snyk was able to reduce its losses in 2023 despite a string of acquisitions over the year, the company’s latest accounts show.
The London, Tel Aviv and Boston-based business cut its pre-tax loss to $176m, down from $266m the previous year while managing to spend more than $40m acquiring other tech businesses.
The acquisitions comprise Israeli security ‘posture management’ tool Enso, bought in June last year for $32.6m; Portuguese pull request platform Reviewpad bought in October 2023 for $7.3m; and Israeli ‘runtime vulnerability’ software developer Heliosphere, acquired in December for $2.9m.
The acquisitions helped Snyk grow its turnover by an impressive 50% over the year to top $220m, with around four-fifths of revenues coming from customers in either the UK or the US. The higher sales were “due to the increased customer adoption and expansion of its product platform,” Snyk said.
A 10% cut in employee numbers, amounting to just over 100 layoffs, also helped Snyk pare back its losses by reducing the wage bill by 5%, the company said.
Snky continues to hold just over $350m in cash, its accounts show, meaning it would be able to continue operating at current loss levels for another two years before being forced to raise more funds from shareholders. Snyk said the reduction in cash came in part as a result of investment in debt securities.
The company was valued at $8.5 billion after securing $530 million in a 2021 funding round.
