In only 18 months, cloud security company Wiz earns $100M in annual revenue

In only the last two years, Wiz, a cloud security business, has sprung to life. Since then, it has launched a number of products, including its first. During the month of December, the firm announced a $550 million Series A round on a value of $6 billion. For an early-stage business, it’s a lot of pressure to live up to the lofty expectations that have been placed on the company’s founders.

If their company’s current ARR results are any indicator, they seem to have had no difficulty. As of February 2021, Wiz claims it is the quickest startup to $100 million in annual recurring revenue (ARR) by expanding from $1 million to that amount in little over 18 months.

Bessemer Ventures State of the Cloud study data was utilised to establish how quick they were, as seen in the figure below.

It’s a remarkable achievement for a company to obtain such a significant ARR level in such a short period of time. Despite his pride in the achievement, CEO and co-founder Assaf Rappaport is attempting to put things in perspective.

There was no aim for us to reach $100 million in annual revenue by the end of the year, to begin with. By the way, this is not a guarantee of future success. It’s a big deal. Rappaport described it as a “little milestone in a long path for us.”

In order to achieve a revenue figure like that, he added, the organisation should focus on its clients from the outset. I would say that the one thing that was crucial for us from the start is that it is all about the client, and from day one we were concentrating on the thought leaders in security and cloud protection,” he added.

He categorises them as follows: companies like BMW, Blackstone, and Costco, who aren’t known for their technological prowess. Smaller software firms like Salesforce, Snowflake and Snap make up the other half of the market share.

Former Sequoia Capital global managing partner Doug Leone, who is still a member of the Wiz board, says he had no second thoughts about putting a significant sum of money in the firm.

“We believe that quality is more important than price, and that the only difference is the amount of time it takes to get there. As a result, a high-quality business will be successful in the long run. We’ve learnt throughout the years that quality yields the best results, regardless of price. In other words, the question becomes, “Is this a quality firm, and early signs in the first 18 months would imply that it is, and much more, and this then tells us that we’re going to be rewarded over the long-term horizon?” He added.

Index Ventures partner Shardul Shah says the startup is tackling a prevalent issue with cloud security, and that’s why clients like it and his firm is all in on the investment.

“That’s allowed it to have unprecedented growth while navigating into uncharted territories, which is why we’ve invested as much money as possible at every opportunity with a lot of conviction that this can be one of the most significant companies related to cloud security that we’ve seen,” Shah said.

There has been a lot of investment in the product since the firm’s initial public offering (IPO) in December. This is an indication of long-term commitment to the product, not a hint that the business is just a short-term play that is sold to a platform company. All major cloud providers, including AWS, Microsoft, and Google, as well as Oracle and Alibaba, are supported.

It is at the heart of Wiz’s security solution that a security graph is used to detect prospective flaws that might lead to difficulties, as well as to correlate all of that information across the numerous areas that a firm is seeking to safeguard. The business argues that by displaying these links, it will be able to close security gaps and identify problems far more quickly than competitors’ methods. Since the company’s initial product was released 18 months ago, it has witnessed significant growth as a result of a solution that is easy to install and begins producing information about the surroundings almost immediately.

There were fewer than 200 people employed by the firm when I talked with Rappaport in December.

The number of employees is expected to reach 700 to 800 by the end of the year as the company continues to actively recruit new employees.

In the grander picture, Rappaport’s claim that the $100 million ARR figure is only a “blip” is correct. For a firm just two years old, with hundreds of clients – they won’t provide an exact figure – they are clearly off to the best possible start as a startup and its investors could wish for.