By Reuters | Updated: October 01, 2024
Oct 1 (Reuters) – Menlo Security’s annual recurring revenue (ARR) has exceeded $100 million, rising by about 30% from the prior year, CEO Amir Ben-Efraim said in an interview, and expects to be cash flow positive by 2025.
The ARR milestone comes four years after the startup, which focuses on secure browser offerings, raised $100 million from investors led by Vista Equity Partners at a valuation of $800 million. ARR measures the income subscription-based software-as-a-service companies gain from their term-based agreements and demonstrates predictability in revenue.
Menlo has tripled its overall revenue since that venture funding and doesn’t need to raise another round of funding, Ben-Efraim said in the interview last week.
Despite the outlook for positive cash flow, Ben-Efraim does not see an initial public offering imminent, which could take three years’ of preparations.
“We’re operating the company profitably, and therefore don’t have the requirement to raise capital to keep going,” he said.
“If an IPO is the right path, then in two to three years from now, if the markets are accepting of it and we’re ready, that’s a great path. And I believe good options always emerge if you have a great company,” he said, adding he is also open to considering acquisition offers if they emerge.
Menlo provides secure browsing products on devices and browsers to more than 1,000 large enterprises across finance and retail industries, as well as government agencies.
As part of its growth strategy, Menlo is continuing to expand partnerships with major giants like Google (GOOGL.O) utilizing direct and partner-driven sales, Ben-Efraim said.
It also plans to build out its footprint globally, including in Europe and Asia. The company is exploring tuck-in acquisitions in areas like document management to broaden its security solutions, he said.
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@ Thomson Reuters 2024
