27 Aug, 2021 Mentions of ‘cybersecurity’ up in company filings in H1 in search for safer digital operations, says GlobalDataPosted in Business Fundamentals
Amid the rush to digitize, cybersecurity has become the need of the hour amid rising cyberattack threats. Mentions of ‘cybersecurity’ in global companies’ earnings transcripts have largely been on the rise since Q2 2020, with nearly 33% growth in H1 2021 compared to the same time last year, according to leading data and analytics company GlobalData.
Rinaldo Pereira, Business Fundamentals Analyst at GlobalData, comments: “The 2020 digital boom got everyone talking about cybersecurity. Firms are now discussing tech themes such as cloud and big data much more regularly, and deals and M&As in this area are also frequently on the table.”
According to the M&A in Tech, Media & Telecoms (TMT) report by GlobalData, cybersecurity was one of the primary themes driving M&A in the TMT sector during H1 2021.
Pereira adds: “The lasting shift in digital operations of both business and consumers, coupled with the rising incidences of data breaches, are driving mentions of ‘data security’, ‘cloud security’ and ‘network security’ in 2021 earnings transcripts. World Bank’s August 2021 announcement of a Global Cybersecurity Fund is likely to drive more discussions around safer digital transitions, M&A and investment, with the rising complexity of cyberattacks.”
In companies’ Quarterly and Annual Reports, discussions around cybersecurity-related risk mentions were up by around 30% in 2020 compared to 2019, while it was up in H1 2021 by 2% compared to H1 2020.
Pereira concludes: “‘Malware’, ‘Ransomware’ and ‘Breach’ were some of the top keywords in cybersecurity discussions in 2021 earnings transcripts. Companies are looking at procuring or investing in cybersecurity services to avoid future attacks. The trend of posted jobs* related to cybersecurity in Q1 and Q2 2021 is a positive sign.”
* According to GlobalData’s Job Analytics Database on the Disruptor Intelligence Center