"The United States is still the second largest market for us. Russia takes the third place, followed by Latin America … In [North] America, we have difficulties, but even despite them, we see an increase in the number of users, primarily due to online sales. The number of people who deliberately choose our product is growing, despite negative media reports and restrictions on sales in government agencies. In this segment – online sales – there is also growth in revenue," the top-manager said.
At the same time, sales to businesses in this region are falling, Moiseev noted.
"Many of our clients have contracts due for renewal. And they are delaying it until the situation clears up," he explained.
According to Moiseev, Europe is the largest market for the company in terms of sales – by the end of 2018, the company plans to increase sales in the region by up to 10 per cent, compared to 2017. Kaspersky Lab also sees sales growth in other regions.
Suspending Opening of Offices in US, Will Open Office in Toronto in 2019
Russian cyber security company Kaspersky Lab has suspended its plans to open offices in Chicago and Los Angeles, while the opening of an office in Toronto has been postponed until 2019, Kaspersky Lab Chief Business Officer Alexander Moiseev told Sputnik in an interview.
"We will open an office in Toronto next year. The need to open offices in Chicago and Los Angeles has disappeared due to the general difficulties in work in the region. We are facing now stagnant corporate sales. At the same time, B2C [business to consumer] sales are growing in the online segment, but it is centralized, there is no need for new offices to develop it. So for now, we are temporarily suspending plans to open new offices," Moiseev said.
The situation is unfolding amid a ban by US authorities on Kaspersky Lab products that came into force last September after Washington had become concerned about the company's presence in federal networks in the wake of Russia’s alleged 2016 election meddling. Kaspersky Lab appealed the decision, but a judge in the District of Columbia rejected the company’s claim that the ban was unconstitutional.
Kaspersky Lab Plans to Increase Sales in Europe by 10% in 2018
Russian cyber security company Kaspersky Lab plans to boost the sales of its products in Europe in 2018 by 10 per cent in comparison with last year, the company's chief business officer, Alexander Moiseev, told Sputnik.
"Europe is our key market. Yes, we had a small decrease there last year, however this year we are growing. The projected sales growth rate is about 10 per cent for the end of the year compared to 2017. This is in line with our plans. Our business in Germany is doing very well," Moiseev said in an interview.
Moiseev noted that a huge growth in sales had been provided by the company's biggest corporate customers.
"I would highlight the financial sector. In Europe, we have 139 banks among our customers," Moiseev added.
The decline in the company's sales in North America was caused by a difficult geopolitical situation. US authorities banned Kaspersky Lab products last September after becoming concerned about its presence in federal networks in the wake of Russia’s alleged 2016 election meddling. A number of EU states also banned the use of the company's products in state bodies.