Cato Networks has announced it surpassed $200 million in annual recurring revenue (ARR) in the second quarter of 2024 – doubling its total ARR in under two years.
The news comes weeks after Cato was named a Leader in the 2024 Gartner® Magic Quadrant™ for Single-Vendor SASE.
“IT security is broken, and enterprises are turning to Cato to fix it,” said Shlomo Kramer, co-founder and CEO at Cato Networks. “A proliferation of point solutions and appliances has created a fragmented IT security market.
“Enterprises are faced with unmanageable complexity and a drain on precious resources, including people, dollars, and time. Cato is leading the IT security industry into a new era, where a single, cloud-native platform converging networking and IT security provides power and simplicity unmatched by the legacy patchwork of tools and vendors.”
The IT security industry is rapidly moving from security appliances and cloud proxies to converged SASE platforms. Many legacy vendors are attempting to evolve their portfolio of capabilities into a converged SASE platform – what’s been called platformisation.
“Converting a portfolio company into a platform company is about as easy as unscrambling an omelet,” said Kramer. “Security is a data problem. A platform makes high-quality, contextualised data available in real-time for protection and stores that data in a single data lake for detection. You cannot get that kind of high-quality data from a portfolio company, no matter how pretty the management interface.”
“As we enter the third generation of IT security, Cato is being embraced faster than the appliances and proxies that defined the previous generation,” said Alon Alter, chief business officer at Cato Networks.
“We earned the trust of more than 1,000 new businesses in the past two years, growing our customer base to over 2,500 and our ARR to more than $200 million. Our growth attests to the demand for a true, autonomous cloud-native platform—one that maintains an optimal security posture and a superb application experience worldwide, freeing IT teams to better support the business.”
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