Cato Networks surpasses $200 million in ARR, doubling revenue in under two years
Earlier this year it was reported that the Israeli cybersecurity firm, which was valued at more than $3 billion in a private funding round last year, had hired underwriters for an initial public offering in New York.
Cato Networks announced on Monday that it surpassed $200 million in annual recurring revenue (ARR) in the second quarter of 2024—doubling its total ARR in under two years.
Earlier this year it was reported that the Israeli cybersecurity firm, which was valued at more than $3 billion in a private funding round last year, had hired underwriters for an initial public offering in New York. Cato has tapped Goldman Sachs, JPMorgan Chase, and Barclays to lead preparations for a stock market flotation that could come by early 2025, possibly sooner if equity capital markets rebound this year, sources said.
Since its founding in 2015, Cato has raised more than $770 million. It raised $238 million in a private funding round last year that was led by LightSpeed Venture Partners, with participation from other investors including Adams Street Partners, SoftBank Vision Fund 2, Sixty Degree Capital and Singtel Innov8.
"IT security is broken, and enterprises are turning to Cato to fix it," said Shlomo Kramer, co-founder and CEO at Cato Networks. "A proliferation of point solutions and appliances has created a fragmented IT security market. Enterprises are faced with unmanageable complexity and a drain on precious resources, including people, dollars, and time. Cato is leading the IT security industry into a new era, where a single, cloud-native platform converging networking and IT security provides power and simplicity unmatched by the legacy patchwork of tools and vendors."
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Cato also announced that more than 2,500 enterprise customers currently use its SASE Cloud Platform, with over 1,000 new customers in the past two years.
"Converting a portfolio company into a platform company is about as easy as unscrambling an omelet," said Kramer. "Security is a data problem. A platform makes high-quality, contextualized data available in real-time for protection and stores that data in a single data lake for detection. You cannot get that kind of high-quality data from a portfolio company, no matter how pretty the management interface."
