LONDON — Cybersecurity company Wiz aims to generate $1 billion in annual recurring revenue next year, the company’s co-founder Roy Reznik told CNBC, adding that the company will go public “when the stars align.”
Wiz makes software that connects to cloud storage providers like Amazon Web Services or Microsoft Azure and scans for everything it stores in the cloud, helping organizations identify and remove risks in their cloud environments. It was founded by four Israeli friends while they were serving in 8200, the Israeli army’s intelligence unit, and most of Wiz’s technical staff is still based in Tel Aviv, Israel.
Earlier this year, the company rejected a $23 billion takeover offer Googlingwhich would have been the tech giant’s largest acquisition ever. At the time, Wiz CEO Assaf Rappaport said the startup was “flattered” by the offer but would remain an independent company and seek to go public instead.
Speaking to CNBC at Wiz’s new office space in London, Reznik said the company has received offers from “a lot of people wanting to get their hands on Wiz shares” – but that while “very flattering”, the company still thinks that it can. only by going public.
“We’ve already broken a few records as a privately held company, and we think we can break a few more as an independent publicly traded company as well,” Reznik said.
Four-year-old Wiz has raised $1.9 billion in venture capital to date, including $1 billion secured this year in a funding round led by Andreessen Horowitz, Lightspeed Venture Partners and Thrive Capital at a valuation of $12 billion.
In 2022, Wiz said it reached $100 million in annual recurring revenue (ARR), up from just $1 million in 18 months. The start-up at the time said it was “the fastest software company to achieve this feat.”
Reznik, vice president of research and development at Wiz, said the company now hopes to double the $500 million in ARR it achieved this year and reach $1 billion in ARR by 2025, which CEO Rappaport sees as a key condition mentioned before the company goes public.
British expansion
Wiz has expanded its presence internationally, with a particular focus on Europe, where it makes 35% of its revenue. Last month the company opened its first European office in London.
“I think the talent here is great, and the ecosystem is great,” Reznik told CNBC. “We have always been very committed to Europe – and specifically Britain – and I feel it is a natural progression for Wiz to double down even more here in London and Britain”
The United Kingdom represents a major growth opportunity when it comes to cybersecurity, Reznik said, adding that recent events such as the cyberattack on National Health Service hospitals and an incident involving Transport for London have “surpassed” interest in the kind of products Wiz has . offers.
“The cloud market will reach $1 trillion in the next few years,” Reznik, who moved from Israel to Britain just three months ago, told CNBC. “This year, sales will be around $700 million, while safety is only 4% of that, I would say. So that makes it a $30 billion market, which is huge.”
Speaking about the UK market, Reznik said: “We see a lot of interest here. Many of the largest banks and retailers are Wiz customers. But we also see huge growth potential.”
Wiz’s clients include online retailer ASOS and digital bank Revolut as customers in the UK