Browser Security Startup Menlo’s Annual Recurring Revenue Hits $100 Million, According to Reuters

Menlo Security’s annual recurring revenue (ARR) has surpassed $100 million, marking a growth of approximately 30% compared to the previous year, according to CEO Amir Ben-Efraim in a recent interview. The company anticipates becoming cash flow positive by 2025.

This impressive ARR achievement comes four years after Menlo Security, which specializes in secure browsing solutions, secured $100 million in funding from investors led by Vista Equity Partners, with a valuation of $800 million. ARR is a key metric measuring the predictable revenue generated by subscription-based software-as-a-service firms through their term-based agreements.

Ben-Efraim noted that Menlo has tripled its overall revenue since that funding round and does not currently plan to seek additional financing.

While the company aims for positive cash flow, an initial public offering (IPO) is not seen as an immediate objective, with preparations potentially taking up to three years, according to Ben-Efraim. “We’re operating the company profitably, and therefore don’t have the requirement to raise capital to keep going,” he stated.

He mentioned that if an IPO seems to be the appropriate route, it could happen in two to three years if market conditions are favorable and the company is ready. Additionally, he is open to considering acquisition offers if they arise.

Menlo Security supplies secure browsing products to over 1,000 large enterprises in sectors such as finance and retail, as well as governmental bodies.

As part of its growth strategy, Menlo is enhancing partnerships with major entities and focusing on both direct and partner-driven sales, according to Ben-Efraim. The company also intends to expand its global presence, particularly in Europe and Asia, and is exploring complementary acquisitions in areas like document management to enhance its security solutions.