Snyk cuts losses by a third, boosts revenue by 50%, as it prepares for IPO
Snyk cuts losses by a third, boosts revenue by 50%, as it prepares for IPO
The cybersecurity unicorn reduced losses by 33% to $176 million, with its revenue reaching $220 million.
Cybersecurity unicorn Snyk grew its revenue by 50% to $220 million in 2023, while cutting its losses by 33% to $176 million, down from $267.3 million. According to the company’s Directors’ Report filed with the UK’s Companies House, Snyk reduced its headcount by 10% last year, laying off just over 100 employees, which brought its workforce to around 1,100 people and reduced the wage bill by 5%. The company had previously cut approximately 12% of its workforce in 2022.
Snyk, which raised $196.5 million in a Series G funding round in December 2022 at a valuation of $7.4 billion, ended the year with total cash balances of $350 million. More than $40 million were spent on acquisitions, including two Israeli startups—$32.7 million on Enso Security and $2.9 million on Helios. The Helios acquisition had previously been estimated to be much more expensive.
Founded in 2015 by Israelis Assaf Hefetz, Danny Grander, and Guy Podjarny, Snyk offers a security product primarily aimed at developers. Snyk’s Developer Security Platform automatically integrates with a developer’s workflow and is purpose-built for security teams to collaborate with their development teams. The company is currently led by CEO Peter McKay.
Earlier this year, Snyk was reported to be drafting an IPO prospectus for a potential Wall Street offering. It remains uncertain when the company will go public.
Last week, Snyk announced that its Static Application Security Testing (SAST) product, Snyk Code, now generates $100 million in annual recurring revenue (ARR), accounting for approximately one-third of the company’s total ARR. The company also highlighted an 80% gross margin and a growing customer base that now exceeds 3,100. Customers include Asurion, Google, Intuit, MongoDB, New Relic, Revolut, and Salesforce.
In late 2023, Snyk launched a new product called AppRisk, following the acquisitions of Enso Security and Helios. AppRisk is designed to help application security (AppSec) teams with a comprehensive, developer-first Application Security Posture Management (ASPM) workbench, enabling them to better govern and scale their security programs.
