Global spending on cybersecurity products and services is expected to rise to $1.75 trillion by 2025, driven by the need to protect increasingly digitized businesses, Internet of Things (IoT) devices, and consumers from cybercrime. To illustrate the severity of the situation, in 2015, Bank of America CEO Brian Moynihan declared that the nation’s second-largest lender had an unlimited cybersecurity budget. And now, a recent survey found that 65% of organizations plan to increase cybersecurity spending in 2023 and in the following years, creating a huge opportunity for cybersecurity companies like Sekur Private Data Ltd. (CSE:SKUR) (OTCQB:SWISF).
Sekur distributes a suite of secure cloud-based storage, disaster recovery, document management, encrypted e-mails, and secure communication tools. The company’s proprietary privacy solutions comprise SekurMail, SekurVPN, and SekurMessenger, which are sold through its websites www.sekur.com and www.sekursuite.com, approved distributors, and telecommunications companies worldwide. Sekur Private Data Ltd. serves consumers, businesses, and governments worldwide.
Sekur’s products address several critical challenges facing the broader tech industry, including privacy concerns and data security risks. At the moment, mega-cloud providers and big tech companies typically collect vast amounts of user data for various purposes, including targeted advertising. This raises significant privacy concerns, as users might be uncomfortable with the level of surveillance and data tracking these companies engage in.
And while these big tech companies invest heavily in security measures, they are still attractive targets for cyberattacks. A security breach can result in the exposure of sensitive user information, leading to identity theft, fraud, and other security-related issues. In recent years, large data hacks, mass virus infections, and mass technical glitches have occurred, not only due to a lack of security with open-source coding.
Sekur Private Data Ltd.'s (CSE:SKUR) (OTCQB:SWISF) primary differentiator is its approach to data storage. It owns 100% of its infrastructure instead of relying on cloud services like Amazon Web Services (NASDAQ:AMZN), Microsoft Cloud (NASDAQ:MSFT), and Google Cloud (NASDAQ:GOOGL). All data traffic is hosted in Switzerland using closed-source proprietary technology on an independent platform separate from big tech, which features military-grade encryption and benefits from Swiss privacy laws. All user data is protected by the Swiss Federal Data Protection Act (FADP) and the Swiss Federal Data Protection Ordinance, which offer some of the strongest privacy protection in the world for both individuals and entities.
Over the past couple of quarters, the company has been on an aggressive international expansion drive, which is set to drive top-line growth and users. Last year, SekurMessenger was launched with América Móvil’s Telcel mobile operator in Mexico, aiming to replace non-secure and non-private messaging applications not only for businesses but also for the mass market. Telcel is the largest mobile operator in Mexico, with over 75 million mobile subscribers, while América Móvil is the 7th largest telecom operator in the world, with over 277 million mobile subscribers in over 20 countries throughout Latin America and Europe. This year, Sekur signed a distribution agreement for the Kingdom of Morocco for its Sekur suite of privacy communications solutions, including the upcoming Sekur Enterprise solutions targeting the first and third largest telecom operators in Morocco, as well as several large banking groups. According to its reseller, Digital Smart Solution Sarl (DSS), currently there is no reliable private and secure messaging solution available in the Moroccan market, and SekurMessenger offers a secure and private solution for SMEs, enterprises, and the government sector.
At the same time, Sekur Private Data Ltd. (CSE:SKUR) (OTCQB:SWISF) has reported impressive results from its optimization and SEO started in January. Its Customer Acquisition Cost ("CAC") fell to $26 per customer in August, beating its 2023 target CAC by 65%. In January, Sekur embarked on a reduction of its CAC in order to focus on targeted digital marketing, such as Google Ads and META campaigns, and optimization of its Sekur website. Previously, the company announced that it was targeting a CAC of $75 or lower by the end of 2023 and a CAC of $60 or lower for 2024 from direct marketing, not counting B2B partnerships, which would lower the CAC overall.
On September 20, Sekur announced that new subscriber signups for its SekurVPN increased by over 100% month-over-month. “Sekur is registering a surge in signups for its VPN solution as cyberattacks become more commonplace and digital identity theft is rampant'', said CEO Alain Ghiai.
The company expects exponential growth in the coming months and years for its SekurVPN solution and is adding enterprise features and other upgrades. Sekur plans to launch a full-scale campaign for its VPN solution sometime in late October or early November as it puts the final touches on its digital ads. By lowering marketing expenses, Sekur Private Data Ltd. (CSE:SKUR) (OTCQB:SWISF) has been able to report substantial improvements in EPS in the past few quarters, and it appears that the company will leverage its new marketing formula to rapidly expand its user base in the upcoming quarters.
Sekur stands out among other cybersecurity and privacy companies through its exceptional product portfolio and steadily expanding clientele, and analysts at Fundamental Research Corp. believe it could have significant upside. They recently gave the stock a BUY rating, with a fair value estimate of $0.68 per share. Following the success of their revamped marketing strategy, the analysts believe Sekur Private Data Ltd. (CSE:SKUR) (OTCQB:SWISF) is likely to ramp up their marketing initiatives, which should drive robust growth in users in the coming quarters.
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