Armis, a San Francisco-based cybersecurity firm, has reached US$300 million in annual recurring revenue, according to CEO Yevgeny Dibrov.

The company reported US$200 million in annual recurring revenue in August 2023.

Armis develops technology that identifies and protects devices for organizations in sectors such as healthcare, financial services, and defense.

The firm recently completed an employee tender offer worth about US$100 million, which valued Armis at US$4.5 billion, up from US$4.2 billion last October.

Investors in the latest tender included Georgian and G Squared, according to Dibrov.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Cybersecurity companies historically deliver strong IPO performance despite current market headwinds

Armis’s decision to wait for optimal timing reflects lessons from successful cybersecurity IPOs that have generated substantial returns for early investors.

CrowdStrike’s 2019 public debut exemplifies this pattern. The company priced at $34 per share and closed at $58 on its first day, marking a 70% increase and reaching an $11.4 billion valuation1. Similarly, Avast raised over $816 million in its London IPO, becoming one of the top five largest tech IPOs in London Stock Exchange history2.

However, the current IPO environment presents challenges that support Armis’s patient approach. The 2025 IPO market has been notably weak, with only 84 IPOs through mid-June—the lowest number for that period since 2022—and total proceeds of just $13 billion compared to $140 billion raised in 20213.

The valuation gap between private and public cybersecurity companies also suggests waiting could be beneficial. Private cybersecurity startups currently trade at an average revenue multiple of 15.2x, while public companies trade at just 7.8x4, indicating that private market valuations may not translate directly to public market reception in the current environment.

2️⃣ Strong sector fundamentals justify premium valuations despite market volatility

Armis’s $4.5 billion valuation at approximately 15x revenue aligns with current private market multiples for cybersecurity companies, reflecting robust sector fundamentals rather than speculative pricing.

The cybersecurity industry is projected to surpass $200 billion in revenue by 2025, growing at a 7.58% CAGR to reach $271.91 billion by 20295. The AI cybersecurity market specifically is expected to expand from $15 billion in 2021 to $135 billion by 20305.

Armis’s 50% year-over-year revenue growth from $200 million to $300 million demonstrates the company is capturing this market expansion effectively. This growth rate positions them favorably compared to other cybersecurity leaders. For example, SentinelOne, ranked as the fastest-growing cybersecurity company, achieved 70% year-over-year revenue growth to $133.4 million6.

Recent Armis developments