Security startup Abnormal hits $100 mln in recurring revenue, eyes IPO

SAN FRANSICO, (Reuters): Abnormal Security, an AI-powered email security startup, said it has crossed $100 million in annual recurring revenue, meeting a milestone for software companies as it eyes an eventual initial public offering, the company told Reuters.

It also hired former Forescout chief executive Michael DeCesare as its president and Maya Marcus as its chief people officer.

Evan Reiser, chief executive at Abnormal, said the company will continue to invest in products and get ready to be a public company as the market for initial public offerings (IPOs) improve, without specifying the timeline.

The company, while not profitable yet, doesn’t need to raise more capital, Reiser added.

Read More: Musk’s X shuts down promoted accounts ad business

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

Abnormal was founded in late 2018 and uses artificial intelligence to detect potential cyberattacks through cloud-based email systems such as Microsoft Outlook. It now serves over 1,300 customers including Xerox , Mattel, Domino’s .

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

The company said its customers are facing more cyberattacks and phishing emails written by AI such as popular chatbots ChatGPT.

“Abnormal is the AI native company in cybersecurity. Now more than ever, we need AI solutions to protect against AI threats,” said Asheem Chandna, a partner at Abnormal investor Greylock.