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Exclusive: Snyk hits $300M ARR but isn't rushing to go public

Dec 06, 2024 - techcrunch.com
Snyk, a developer security startup valued at $7.4 billion, is not rushing to go public despite drafting an IPO prospectus in January 2024 and hitting $300 million in annual recurring revenue (ARR), according to CEO Peter McKay. The firm, which has raised over $1 billion and has $435 million in the bank, expects to be cash flow positive in 2025 and plans to choose the right time for its IPO, possibly in a more favorable regulatory environment in 2026.

The company, which helps developers identify potential issues in their code, is not scaling back on its acquisition strategy, having bought smaller firms like Helios and DeepCode in recent years. McKay also noted that the rise of AI coding tools, which he believes generate 30-40% more vulnerabilities, could provide more opportunities for Snyk's security tools, as the number of developers using its platform has increased over the past year.

Key takeaways:

  • Snyk, a developer security startup, is not rushing to go public despite drafting an IPO prospectus and hitting $300 million ARR, according to CEO Peter McKay.
  • McKay believes that regulatory conditions will improve in 2026, making it a more favorable time for the company to go public.
  • Snyk has raised over $1 billion and plans to continue its strategy of acquiring smaller firms in the dev security space.
  • Despite the rise of AI coding tools, Snyk has seen an increase in the number of developers using its platform, and McKay believes AI-generated code could provide more opportunities for Snyk's security tools.
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