Code42, the fast-growing provider of software that protects and recovers data on laptop and other “endpoint” devices, plans to discontinue its consumer business and focus on its business-and-education markets.
“The consumer business has not been growing,” CEO Joe Payne said in an interview. “We needed to focus on one or the other.
“We will transition consumers so they land on their feet. We spent a lot of time considering how to transition out of this business. And we will honor all our contracts. Anybody who signed up for a subscription, we will serve them through that subscription. We’re going to exit slowly.”
Code42 will honor all existing “CrashPlan for Home” subscriptions, and will wind down support of CrashPlan for Home in October 2018.
Its consumer customers will be offered extended subscriptions and special discounts throughout the transition, as well as dedicated support to assist with the move to a new backup solution. Code42 selected Carbonite as its referral partner for CrashPlan for Home customers, offering what it said will be “a seamless transition path for those looking for personal backup.”
Payne, 53, is a veteran technology-marketing veteran who took over in 2015 one of Minnesota’s fastest-growing software firms.
The company, which raised $85 million in venture capital two years ago, has doubled employment to more than 525 people, and has 55 job openings.
Code42 moved out of quarters in Riverplace on the east bank of the Mississippi River earlier this year into no-cubicle, spacious quarters at downtown Minneapolis’s refurbished 100 S. Washington building, once home to the former ReliaStar-ING insurance company.
Code42, which secures data for more than 47,000 organizations worldwide, has experienced double-digit revenue increases in recent years.
Payne said Code42 will top $100 million in revenue this year.
“The exponential increase in cyberattacks and data breaches have driven businesses of all sizes to zero-in on protecting their growth,” said Doug Cahill, a senior analyst covering cybersecurity at Enterprise Strategy Group, in a prepared statement. “Code42’s decision to solely focus on business needs comes at a time when both small and large enterprises need to accelerate their investments in data protection and recovery.”
Founded about 15 years ago, Code42 is owned by its employees and institutional investors Accel Partners, JMI Equity, NEA and Split Rock Partners.