Yubico (YUBICO) investor relations material

Strategic direction and market position

• Focused on expanding from privileged users to broader organizational rollouts, leveraging a strong base in Global 2000 companies and public sector organizations, with 30% penetration in the Global 2000 as of 2024.

• Land-and-expand strategy is central, with high customer retention and repurchase rates, driven by both perpetual and subscription models.

• Market share in advanced authentication is about 5%, with significant growth potential as the market is expected to grow at 14% CAGR.

• Expansion efforts include geographic growth (notably in Asia-Pacific with a new Singapore office), industry diversification (e.g., healthcare), and scaling through channel partners and alliances.

• Retail and B2B2C channels are being developed to extend security solutions beyond the workforce to end customers and third parties.

Industry trends and leadership

• Cyberattacks are increasing in scale and sophistication, with AI-driven phishing and credential theft on the rise, leading to significant financial and reputational risks for organizations worldwide.

• Passkeys and passwordless authentication are becoming mainstream, with major tech companies adopting FIDO2 standards for enhanced security.

• Regulatory bodies globally are mandating or recommending phishing-resistant multi-factor authentication, accelerating industry adoption.

• Yubico has played a pivotal role in co-creating FIDO standards and has shipped over 35 million security keys worldwide.

• The company is recognized for providing the highest level of authentication security, validated by industry analysts and compliance standards.

Product innovation and technology leadership

• Yubico is a co-creator of the FIDO standard and passkeys, driving industry-wide adoption of passwordless, phishing-resistant authentication.

• Hardware-based authentication (YubiKey) remains a long-term strategy, with ongoing investment in post-quantum cryptography and quantum-safe authentication.

• The company is building a foundation for digital identity solutions, including user-controlled, privacy-preserving verified credentials, in partnership with the Sirius Foundation.

• YubiKey as a Service (YAS/YaaS) is accelerating, offering subscription-based, turnkey deployment and lifecycle management, with 33% CAGR in YAS sales since 2022.

• Product roadmap includes deeper integration with digital identity ecosystems, leveraging open standards and partnerships to address emerging regulatory and market needs.