Categories: Technology

Wiz hopes to hit $1B in ARR in 2025 before an IPO, after turning down Google’s $23B

Wiz co-founder and VP of R&D Roy Reznik told CNBC last week that the company has hit $500 million in annual recurring revenue, and plans to double that in 2025 to $1 billion. He also reiterated that the $1 billion-mark is a prerequisite for the IPO that Wiz promised employees when it walked away from acquisition talks with Google last summer at a $23 billion price tag. 

ARR at the cloud security startup was at about $350 million in May, but was already around $500 million by July when it walked from Google, TechCrunch reported at the time. In an email to employees after deal talks ended, Wiz’s CEO Assaf Rappaport told Wiz’s 1,200 employees that the company wanted $1 billion in ARR before an IPO. Back then, Wiz execs expected to hit the number in 2025. So to have Reznik double down last week is a good sign that Wiz is still growing as expected. A spokesperson also confirmed this ARR goal to TechCrunch.

Wiz was already experiencing fast growth, practically since its inception. In 2022, Wiz claimed to be the fastest startup to $100 million ARR ever, reaching that goal just 18 months after it launched in 2020.

Google’s offer also came right when Wiz was in a perfect position to weather turning it down. It had just raised $1 billion a few months earlier, in May, at a $12 billion valuation, led by Andreessen Horowitz, Lightspeed Venture Partners, and Thrive Capital. Wiz called itself the world’s largest cyber unicorn at the time.

“We’ve already broken a few records as a private company, and we believe we can also break a few more records as an independent public company as well,” Reznik told CNBC last week, as he announced expansion in the U.K. with a London office. Reznik talked about the growth rate of cloud computing, and how global spending on cloud security is already at over $30 billion this year.  His implication was that Wiz still has a lot of room to grow.

Should Wiz achieve the $1 billion ARR number before attempting an IPO — and if its underlying financials are strong and indicate more potential growth — it could indeed have a record-breaking public debut. Back in 2020 Snowflake broke records for its IPO as the biggest software IPO ever, when shares closed the day at a $70 billion market cap. This was on fast-growing revenues of $265 million and a net loss of $348 million. Snowflake investors haven’t maintained that exuberance, but the company is still trading at around a $39 billion market cap.

In other words, Wiz still has reason to believe that it could indeed look back at a $23 billion offer in 2024 and sneeze.

News Today

Share
Published by
News Today

Recent Posts

USA Lacrosse Regional Academies Feature Expert Speakers

2024-11-06 16:55:03 SPARKS, Md. — USA Lacrosse is bringing expert education to Denver and Dallas next…

7 mins ago

Bitcoin price hits new high on anticipated Trump victory

2024-11-06 16:45:02 Crypto markets roared on Tuesday night as investors, anticipating a victory for Donald…

17 mins ago

House of Quadri opens experience centre in Gurugram

Published November 5, 2024 House of Quadri, a luxury lab grown diamonds jewellery brand has…

22 mins ago

10 Tips For A Happier Vacation Experience

As fun and exciting as travel can be, it sure can come with some chaos.To…

27 mins ago

We Don’t Need To Get Vulgar About It

Do not call yourself a Bollywood fan if you haven't seen Nora Fatehi dancing to…

32 mins ago

Bitcoin surges to a record $75,000 as traders bet a Trump presidency will boost crypto, weaken regulation

2024-11-06 16:25:04 Jakub Porzycki | Nurphoto | Getty ImagesBitcoin rallied overnight, hitting an all-time high…

37 mins ago