Businessmodel of Imperva

Customer Segments

According to its website, Imperva serves more than 4,500 customers in more than 90 countries worldwide, comprising businesses of all sizes across multiple sectors. The Americas continue to be Imperva’s largest market, with the region accounting for the majority of the Company’s revenue over the past several years. Sales across Europe, the Middle East and Africa accounted for around 25% of the Company’s revenue in 2015, while sales in across the Asia Pacific region accounted for approximately 12%.

Imperva serves customers from a range of industries, including the technology, financial services, insurance and manufacturing sectors. A significant portion of Imperva’s sales are made to US and international federal, state and local government agencies, accounting consistently for more than 10% of total revenue. The Company expects this trend to continue over the coming years.

Value Propositions

Imperva provides value to its customers by offering quality and reliable security solutions.

The Company partners with a range of specialist technology companies in developing and building its software, endeavouring that it provides the best possible service to its customers.

Imperva also offers maintenance and training services to customers with a view to ensuring that they utilise Imperva products to their optimum levels. The Company spends millions of dollars each year on research and development, seeking to improve and perfect its security products.

Channels

Imperva operates a website at www.imperva.com, where customers are able to browse the Company’s products and services.

The Company employs a hybrid sales and marketing model, combines a channel sales model with a more traditional direct sales model. According to its 2015 annual report, Imperva employs a direct touch sales organisation and an overlay channel sales team that works in conjunction with its network of channel partners throughout the sales process.

The majority of Imperva’s sales of products and services are realized via the Company’s channel partners, including distributors and resellers. In 2015, Imperva’s channel partners originated more than 45% of the Company’s sales and fulfilled almost 89% of sales. The Company had one reseller in 2015 that represented 18% of its total annual revenue.

Customer Relationships

While customers are able to view Imperva’s products and services on the Company’s website, and request demonstrations and free trials, purchases cannot be made on a self-service basis. Purchases, instead, must be made directly through sales personnel.

While this can be negotiated directly with Imperva sales representatives, the majority of sales are made through resellers and distributors.

Imperva does provide maintenance and support services to its customers, as well as operating direct training programs. Additionally, it makes a range of resources available to customers free of charge via its website, including webinars, whitepapers, infographics, case studies and security tools.

Imperva hosts a blog and publishes press releases, and interacts with customers through its Facebook, Twitter, LinkedIn, YouTube and Google+ accounts. It also participates in a number of industry events.

Key Activities

Imperva develops, markets and sells cyber-security solutions designed to protect business-critical data and applications both in the cloud and on premises.

Imperva’s products include its Imperva SecureSphere platform for enterprise data centres, and Imperva Incapsula and Imperva Skyfence offerings for cloud-based security services, which provide customers with various database security, file security and web application security solutions.

Imperva also provides ancillary maintenance and support, consulting and training services to its customers on a contract basis.

Key Partners

Imperva collaborates with a number of companies operating in a variety of sectors that deliver and support the Company’s data centre security solutions worldwide.

The Company’s partnerships are managed through its PartnerSphere Program, which is divided into three categories:

• Managed Service Providers and Hosters, that assist Imperva’s customers in neutralising theft and fraud attempts, achieving regulatory compliance, and reducing the risks associated with automated, repeatable processes;
• Value-Added Resellers and Distributors, which generate sales of Imperva products and services; and
• Technology Alliance, members of which assist Imperva in building effective security solutions. Imperva’s channel partners, which as of 31st December 2015 numbered more than 300 resellers and distributors worldwide, are particularly key in executing Imperva’s business model. Imperva’s technology partners include Trusteer, ThreatMetrix, and Garland Technology.

Key Resources

Imperva’s key resources are its technology and security products, its IT infrastructure, its channel and technology partners, and its personnel – particularly those working within research and development.

Searches of records held by the US Patent and Trademark Office identified nine patent applications filed in Imperva’s name. These include applications entitled ‘Coordinated detection and differentiation of denial of service attacks’, ‘Compromised insider honey pots using reverse honey tokens’ and ‘Automatic generation of attribute values for rules of a web application layer attack detector’.

Cost Structure

Imperva incurs costs in relation to the research and development of its products and solutions, the maintenance of its IT infrastructure, the operation of its sales and marketing channels, and the retention of its personnel.

The Company also accrues costs in relation to the payment of professional fees, third-party hardware costs, royalty fees and the operation of research and development facilities and administrative and sales offices.

As of December 31st 2015, Imperva employed 923 members of staff, which represent costs in the form of salaries and benefits.

Revenue Streams

Imperva generates revenue through the sale and licensing of its security products and provision of support services. The Company’s products and license revenue is generated primarily from sales of perpetual software licences installed on hardware or virtual devices from its SecureSphere product line.

Services revenue is subdivided into provision of maintenance and support services, provision of professional services and training, and subscription sales. The majority of Imperva’s revenue is generated through sales across the Americas, which accounted for 64% of the Company’s total revenue in 2015.

In 2015 Imperva recorded an annual revenue of $234.3 million, up 42.9% on the $164 million the Company generated in 2014. The sale of products and licences in 2015 generated $107.6 million, or 46%, of the Company’s total net revenue. The provision of services generated $126.7 million in revenue, with maintenance and support accounting for 28.3%, subscriptions accounting for 19.7%, and professional services and training accounting for 6% of total net revenue.

Despite posting steadily increasing revenue figures, Imperva continues to make net annual losses. In its 2015 annual report, the Company states that is has incurred net losses in each fiscal year since its foundation, including net losses attributable to stockholders of $25.2 million in 2013, $59 million in 2014 and $48.9 million in 2015.