Cybersecurity firm Wiz is aiming to reach $1 billion in annual recurring revenues next year, according to billionaire co-founder Roy Reznik. Speaking to CNBC, Reznik said the company plans to go public "when the stars align." Wiz, co-founded by former members of Israel's military intelligence unit 8200, develops software that connects to major cloud service providers like Amazon Web Services and Microsoft Azure. This allows organizations to scan their cloud environments for potential risks. Most of Wiz's engineering team is located in Tel Aviv, Israel.
Earlier in 2023, Wiz turned down a $23 billion acquisition offer from Google, which would have been the tech giant's largest acquisition to date. CEO Assaf Rappaport remarked that while the offer was flattering, Wiz intends to remain independent and pursue an initial public offering (IPO) instead. During the CNBC interview at Wiz’s new London office, Reznik noted that the company is attracting interest from numerous parties eager to invest in Wiz stocks. Despite these opportunities, Reznik remains confident in the firm’s capability to succeed on its own by going public. "We've already broken several records as a private entity, and we believe going public will allow us to achieve even more," said Reznik.
Founded four years ago, Wiz has so far raised $1.9 billion, including $1 billion in 2023 from a funding round led by Andreessen Horowitz, Lightspeed Venture Partners, and Thrive Capital, giving the company a valuation of $12 billion. In 2022, Wiz announced that it had achieved $100 million in annual recurrent revenue (ARR), a significant increase from $1 million in just 18 months. The startup claims this milestone was reached faster than any other software company. Reznik, who serves as the vice president of research and development, now aims to double their $500 million ARR achieved this year, to hit $1 billion in 2025, a pivotal milestone preceding their public listing.
As part of its international expansion, Wiz has been focusing on Europe, where it currently generates 35% of its revenue. In line with its plans, the company recently inaugurated its first European office in London. "The talent and ecosystem here are top-notch," Reznik shared with CNBC. Highlighting the U.K. as a crucial growth market, particularly following significant cyber incidents affecting national institutions like the National Health Service and Transport for London, Reznik emphasized the escalating demand for cybersecurity solutions.
"The cloud market is set to reach $1 trillion in the next few years," said Reznik, who relocated from Israel to the U.K. recently. "Currently valued at around $700 million, with security comprising just around 4%, the market potential is approximately $30 billion, which is substantial." Discussing the U.K. market further, Reznik observed a spike in interest from major banks and retailers already relying on Wiz's services, alongside emerging opportunities for expansion. Notable U.K. clients include the online retailer ASOS and the digital bank Revolut.
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