Orange County’s software sector, a key economic driver, boosted employment 5.4%, the third straight year of significant job growth.
The 43 largest software makers with local operations added 489 jobs in the trailing 12 months ended July 30, for a total of 9,511 local positions. They grew employment by 7% last year and 5.1% in 2016.
The industry’s growth rate has increased seven consecutive years since the Business Journal started ranking companies by local employment rather than revenue.
Once again, Irvine is the hottest spot for software making here, home of 24 offices, followed by Newport Beach with five.
The diverse segment includes locally based software makers, as well as subsidiaries and operations of big, primarily U.S. companies with varying areas of specialization, from red-hot esports and artificial intelligence and analytics to more traditional business management and workflow applications.
Twenty companies added jobs and four made cuts. The Business Journal estimated employment for 12 firms that didn’t provide enough information for yearly comparisons. Five companies reported flat employment.
Game Time
• Perennial No. 1, Irvine-based Blizzard Entertainment Inc., had an estimated 2,000 workers at its Spectrum headquarters, flat year-over-year.
The inaugural season of its esports league ended in grand fashion in July, selling out the Barclays Center in New York. The Overwatch League’s Grand Finals, which culminated with London Spitfire beating Philadelphia Fusion for the vast share of a $1.4 million prize purse, was streamed on Twitch.tv and Major League Gaming. Domestic viewers took in the action on ABC, ESPN channels and Disney XD.
Blizzard recently announced the 12-team league will expand to Atlanta and Guangzhou, China next season.
Security’s the Thing
• Security software maker Cylance Inc., one of OC’s highest-valued and most-watched companies, moved up one spot to No. 5 after adding 14 workers for a 382 total, but below the 45% increase it reported a year ago.
“Cylance was founded on the principle that security should be proactive and easy, and we have seen rapid customer adoption of our AI-powered platform ever since,” Chief Executive Stuart McClure told the Business Journal. “The past 12 months have been no exception.”
The company recently raised $120 million in a venture round led by prior investor Blackstone Tactical Opportunities, and released its first software product targeting consumers. Cylance Smart Antivirus costs $29 a year for a single computer and $99 for up to 10 computers on a family plan.
The plug-and-play software is promoted as providing predictive security that tracks and blocks threats before they damage device performance or disrupt the user.
Cylance grew revenue more than 90% in its last fiscal year to over $130 million. It has more than 4,000 customers, including over 20% of the Fortune 500.
A $100 million Series D round led by Blackstone in 2016 catapulted the company into unicorn status.
HR, AI, Analytics, Etc.
• Ultimate Software Group Inc. jumped from ninth to fourth place by adding 113 employees for a total of 398, up 40%. The Weston, Fla.-based company grew faster here than companywide, which expanded 10% to 4,300. It specializes in human resources, employment and payroll software.
• No. 13, Irvine-based Acorns Grows Inc., moved up eight spots after adding 86 jobs, up 75% to 200.
In May, the Business Journal reported the company plans to nearly triple the size of its local headquarters near University of California-Irvine following a $50 million anchor investment by the world’s largest asset manager, BlackRock Inc. The fast-growing fintech firm, which developed a micro investment app for consumers that now manages more than $800 million of over 3 million users, recently signed a lease for a building at UCI Research Park office campus.
• Irvine-based Alteryx Inc. (NYSE: AYX), another fast grower, moved up three spots to No. 15 after adding 48 positions to 184, up 35%. The analytics software maker posted second-quarter sales of $46.8 million, up 54%.
“There’s only going to be a couple of winners or leaders in the data science and analytics world, and we intend to be one of them,” co-founder and Chief Executive Dean Stoecker told the Business Journal in a recent interview.
The stock market agrees, as Alteryx’s shares have about quadrupled since its initial public offering last year. It now has a $3.3 billion market cap.
• Veritone Inc. moved up one spot to No. 19 after adding 30 workers to 155, up 24%. The Costa Mesa-based company, whose shares jumped and nosedived since last year’s IPO, announced two recent acquisitions as it aims to break into the booming AI segment with its aiWARE platform, which allows companies to track ads and media comments in real time.
Veritone’s advertising unit plans to buy Performance Bridge for $6 million and could pay an additional $5 million, primarily in Veritone stock, if the Binghamton, N.Y.-based company meets certain revenue benchmarks.
In another deal, Veritone (Nasdaq: VERI) will pay $15 million in a cash-and-stock deal for cloud video management and licensing services provider Wazee Digital.
• No. 25, custom software maker Verys LLC, added 42 jobs at its Santa Ana headquarters to 114 positions, up 58.3%. President and co-founder Mike Zerkel said growth was fueled by several factors.
“We’ve seen aggressive growth from existing accounts, such as Zenimax Media, Irvine Co. and Option Care. We have added terrific new clients, including Experian Consumer Services, Riot Games and Classy.org. Lastly, the market has rejected the offshore model for iterative development in the web and mobile application space.” Its products help customers like American Airlines simplify boarding.
• No. 32, Irvine-based Greenwave Systems, shed 18 jobs, down 25% to 55 local positions. Its AXON hardware and software suite allows businesses to deploy their own systems to manage services remotely for the Internet of Things, a booming segment that enables connected devices to communicate with each other through a web browser, smartphone or tablet.
“We balance our staff according to skills and the demand we have across our global offices,” Global Vice President Roger Gregory said in an email.
Newbies
Several newcomers join the list, including:
• No. 15, MobilityWare Inc., with 184 workers, up from 159. The Irvine-based app maker is behind some of the world’s most popular mobile games, such as “Solitaire,” its spinoff “FreeCell,” and “Blackjack.”
• No. 27, telematics products and services specialist CalAmp Corp. (Nasdaq: CAMP), added 38 local jobs to 93 positions, up 69%. Telematics is an all-encompassing term for remote monitoring of assets, typically autos.
• No. 29, Netwrix Corp., added 19 jobs to 66 workers, up 40.4%. The Irvine-based IT auditing and compliance software maker has seen demand jump the past few years among small and midsize businesses. Its core licensing software offerings are billed as detecting security threats; automating auditing and reporting tasks; and providing security intelligence on critical changes, data access and sensitivity, and system configurations in IT, as well as ensuring audit and security programs meet industry and regulatory standards.
