3 Security Companies: Intersections (INTX)
Although Intersections is considered a leader in identity risk management and privacy protection, its customers—mainly financial institutions—have been defecting on a regular basis. Revenue slipped 11% in 2013 as subscribers went from 4.5 million at the onset of that year to just 2.9 million by December. The company also provides retail services under the Identity Guard name.
Intersection relies primarily on U.S. banks to push its identity-theft platform, but due to regulatory scrutiny in the banking industry many of its clients have stopped marketing its products. That’s certainly cause for concern, and as a result, the company is forecasting a further drop in revenue between 11% and 18% in 2014 or $300 million.
Its saving grace—albeit long term—may be a $400 million revenue target for 2016 once its Identity Guard and VOYCE brands gain traction.
Written by Karen Riccio