Behavox, a leading provider of AI-driven compliance solutions for Financial Services, today announced its financial results for the third quarter of 2024, highlighting strong momentum and sustained profitability.
Key Financial Highlights
- Annual Recurring Revenue (ARR): Behavox achieved a 36% YoY ARR growth in Q3, building on the 35% YoY growth in Q2 and marking the 15th consecutive quarter of ARR growth for Behavox. The firm remains on track to achieve 40% YoY ARR growth by the end of 2024.
- Profitability: Q3 marked another profitable quarter for Behavox, as the company continued delivering sustained profitability since Q4 2023. The management team is confident that the firm will achieve full-year profitability in 2024.
Erkin Adylov, CEO of Behavox, commented: "Our sustained growth and profitability are a testament to the strength of our products, the dedication of our team, and the trust we have built with our customers. We are positioned for another record year of growth. With the strength of our balance sheet, we're excited about the road ahead as we continue to deliver best-in-class compliance solutions for the financial services industry."
Product and Market Momentum
- Quantum AI, Behavox's flagship Communication Surveillance and Supervision product, continues to displace legacy solutions from competitors like Global Relay and SMARSH. The platform's best-in-class alert quality, scalability, and rapid implementation have been pivotal in these wins.
- In Q3, Behavox went live with 2 systemically important large banks and is concurrently working on 18 enterprise implementations in October alone, the highest in the company's history.
- Behavox continues to make representations to regulators regarding the use of AI in surveillance and broader regulatory compliance within Financial Services.
- Intelligent Archive, a recent addition to the Behavox portfolio, has seen significant market interest, with a 13x growth in pipeline since the start of 2024. This demonstrates a strong demand for a modern archiving solution that surpasses outdated technologies like Enterprise Vault and Bloomberg Vault.
Fahreen Kurji, Chief Customer Intelligence Officer of Behavox, added: "The market has been ready for some time to move away from legacy archiving solutions, but there were no viable alternatives until we introduced Intelligent Archive. Our product offers lower storage costs, superior performance, AI-powered search capabilities, and no excessive data export fees. On top of that, customers benefit from a single vendor providing both Surveillance and Archiving, which drives down the total cost of ownership. This is exactly what the market has been asking for."
Looking Ahead
While formal guidance for 2025 will be issued in November, the management team has already expressed confidence in delivering a 30%+ growth rate next year, with profit margins in the mid-teens.
Erkin Adylov concluded: "Behavox is a multi-product company focused exclusively on delivering cutting-edge compliance solutions to the Financial Services sector. Our technological superiority, top-tier talent, and robust financial foundation position us well to sustain the current growth trajectory. In recent discussions with our customers, we outlined our plans to expand into the Trade Surveillance and Control Room markets an exciting new phase for Behavox, with more updates to be revealed later this year."
To learn more about Behavox's product portfolio, we invite you to join us at the following events:
- October 8th, 2024 Regulatory Summary Webinar
- October 16th, 2024 Policy Manager Webinar
- November 7th, 2024 AI Summit, New York
For more information on Behavox events, please visit https://www.behavox.com/behavox-events/
About Behavox:
Behavox is an Artificial Intelligence company on a mission to build cutting-edge AI systems that safeguard businesses and enhance human productivity. As the world's foremost provider of AI-powered archiving, compliance, and security solutions, we are trusted by leading organizations to secure their text and voice communications data, and monitor a broad range of regulatory, conduct, and insider threat risks. Founded in 2014, Behavox is headquartered in London, with offices worldwide, including in New York City, Montreal, Seattle, Singapore, and Tokyo.
More information about the company is available at www.behavox.com
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