Browser security startup Menlo’s annual recurring revenue hits $100m Reuters

(Reuters) – Menlo Security’s annual recurring revenue (ARR) topped $100 million, up about 30 percent from a year earlier, CEO Amir Ben-Efraim said in an interview, and is expected to be cash flow positive by 2025.

The ARR milestone comes four years after the startup, which focuses on secure browser offerings, raised $100 million from investors led by Vista Equity Partners at a valuation of $800 million. ARR measures the revenue earned by subscription-based software-as-a-service companies from their term agreements and demonstrates revenue predictability.

Menlo has tripled its total revenue since that venture funding and doesn’t need to raise another round of funding, Ben-Efraim said in the interview last week.

Despite the prospects for positive cash flow, Ben-Efraim does not see an initial public offering imminent, which could take three years to prepare.

“We are operating the company profitably and therefore have no requirement to raise capital to continue,” he said.

“If an IPO is the right path, then two to three years from now, if the markets accept it and we’re ready, that’s a great path. And I think good options always come up if you have a great company,” he said, adding that he’s also open to considering acquisition offers if they come up.

Menlo provides secure browsing products across devices and browsers to more than 1,000 large enterprises in the financial and retail industries, as well as government agencies.

As part of its growth strategy, Menlo continues to expand partnerships with major giants such as Google (NASDAQ: ) using direct and partner-based sales, Ben-Efraim said.

It also plans to expand its footprint globally, including in Europe and Asia. The company is exploring integrated acquisitions in areas such as document management to expand its security solutions, he said.