Security startup Abnormal has $100 million in recurring revenue and is planning an IPO

Aug 15 (Reuters) – Abnormal Security, an AI-powered email security startup, announced that it has surpassed $100 million in annual recurring revenue, marking a milestone for software companies since it the company told Reuters that it is considering a possible IPO.

The company also hired former Forescout CEO Michael DeCesare as President and Maya Marcus as Chief People Officer.

Evan Reiser, Abnormal’s chief executive officer, said the company will continue to invest in products and prepare to become a public company as the initial public offering (IPO) market recovers without setting the timeline.

While the company isn’t yet profitable, it doesn’t need to raise any more capital, Reiser added.

Abnormal Security last raised $210 million in May 2022 at a $4 billion valuation from investors including Insight Partners and Greylock Partners.

Founded in late 2018, Abnormal uses artificial intelligence to detect potential cyberattacks via cloud-based email systems such as Microsoft Outlook. The company now serves over 1,300 customers, including Xerox (XRX.O), Mattel (MAT.O) and Domino’s (DPZ.N).

DeCesare said the company will continue to expand into international markets like Europe and Japan, as well as federal programs in the US, with a focus on large companies.

The company said its customers are facing more cyberattacks and phishing emails authored by AI like popular chatbots ChatGPT.

“Abnormal is the AI-native enterprise in cybersecurity. More than ever, we need AI solutions to protect against AI threats,” said Asheem Chandna, partner at abnormal investor Greylock.

Reporting by Krystal Hu in New York; Edited by Lincoln Feast.

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Krystal reports on venture capital and startups for Reuters. She covers Silicon Valley and beyond through the lens of money and characters, with a focus on growth-stage startups, technology investments, and AI. She has previously covered mergers and acquisitions for Reuters and shared stories about Trump’s SPAC and Elon Musk’s Twitter funding. She previously reported on Amazon for Yahoo Finance, and her investigation into the company’s retail practices has been cited by lawmakers in Congress. Krystal began her journalism career writing about technology and politics in China. She has a master’s degree from New York University and enjoys a scoop of matcha ice cream as much as a scoop at work.