Shlomo Kramer, CEO of Cato Networks Ltd., attends the Bloomberg Tech Summit on Tuesday, October 22, 2024 in London, UK.
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Cato Networks will surpass $350 million in annual recurring revenue in 2025 as more companies adopt its tools in the age of artificial intelligence, the cybersecurity startup announced Tuesday.
CEO Shlomo Kramer said in an interview with CNBC that the cloud-based network security provider is benefiting from the AI transformation and has “aggressive plans” to gain market share in 2026.
“We’re gaining some scale and becoming a more important player in the (network security) market,” said Kramer, co-founder of the Israeli cybersecurity company. check point software and was an early investor palo alto networks.
This milestone reflects 43% year-over-year growth and comes just months after Cato announced that ARR had surpassed $300 million. This metric is used by software companies to track revenue over a 12-month period.
Shares of publicly traded cybersecurity companies have fallen as new AI tools built by Anthropic and others threaten to upend the sector’s business model. Cyber companies are incorporating more AI tools to automate tasks and better protect their customers.
Cato added its own AI tools to monitor and enhance its threat protection capabilities, acquiring AI security startup Aim Security in September, its first acquisition.
Kramer said AI is a big tailwind for the company, but he expects a correction to occur as companies reassess the pace at which technology can add value.
Cato has raised more than $1 billion since its founding in 2015, and closes about eight months after a new round valued the company at about $4.8 billion.
Mr. Kramer’s goals for the next 10 years are:cloud strike For network security. ”
He did not give a definitive answer on whether the company is considering going public, only saying that Cato is considering all types of financing.
