Cybersecurity company Wiz is aiming for $1 billion in annual recurring revenue next year, according to the firm’s billionaire co-founder Roy Reznik. Speaking to CNBC, Reznik revealed that an IPO is on the cards for the firm, but only “when the stars align.”
Wiz’s core product is a software that integrates with cloud storage providers such as Amazon Web Services or Microsoft Azure, scanning stored data for potential risks. The firm was established by four friends from Israel during their service in Israel’s army intelligence unit 8200, and its engineering team is still largely based in Tel Aviv, Israel.
Earlier in the year, Wiz turned down a $23-billion buyout offer from Google, which would have been the tech giant’s largest acquisition to date. Despite the allure of the offer, CEO Assaf Rappaport insisted that maintaining the firm’s independence and pursuing a listing was a better route for Wiz.
Discussing the company’s future prospects, Reznik acknowledged the interest from multiple parties looking to acquire Wiz stock. However, he emphasized the firm’s belief in its ability to go public independently.
Since its inception four years ago, Wiz has raised an impressive $1.9 billion in venture capital. This includes $1 billion secured this year through a funding round led by Andreessen Horowitz, Lightspeed Venture Partners and Thrive Capital, boosting the firm’s valuation to $12 billion.
In 2022, Wiz reported $100 million in annual recurring revenue (ARR), a remarkable jump from a mere $1 million in 18 months. The firm now plans to double its $500 million ARR achieved this year, with the goal of reaching $1 billion in ARR in 2025. This milestone is a key precondition for the company’s potential IPO.
In addition to its financial goals, Wiz has been expanding globally, with a significant focus on Europe. The company recently established its first European office in London, a move Reznik attributes to the exceptional talent and ecosystem in the UK. He also noted the significant potential for growth in the country’s cybersecurity market, underscored by recent cyberattacks on key institutions.
The cloud market is projected to reach a staggering $1 trillion in the next few years, according to Reznik. With security accounting for just 4% of this, he believes there is a huge opportunity for companies like Wiz. The firm already counts ASOS and digital bank Revolut among its UK customers, and it remains optimistic about further growth.
