Ryan Reynolds (L), Scarlett Johansson (C), and Matthew McConaughy
Reuters
Cybersecurity startup 1Password, backed by Ryan Reynolds, Matthew McConaughey and Scarlett Johansson, has topped more than $400 million in annual recurring revenue, the company said Thursday.
“We believe we’re at a pretty significant inflection point in our journey,” CEO David Faugno told CNBC. “We’re set up for this next wave of disruption, which I think is an even bigger opportunity for us.”
Faugno said he expects the company to surpass a billion dollars in ARR over the next “several years,” benefiting from a shift in the threat landscape due to artificial intelligence and more complex protection needs.
In 2023, 1Password announced that it had surpassed $250 million in ARR.
AI innovation has accelerated demand for better cybersecurity tools to counteract sophisticated and complex cyberattacks. Big deals from Palo Alto Networks and Alphabet, and initial public offerings from Netskope and SailPoint have also put the sector in the spotlight.
Toronto-based 1Password was founded in 2005 and counts IBM, Perplexity AI, Salesforce and the Golden State Warriors among its customers, and it’s also signed a multiyear deal with Formula 1 team Oracle Red Bull Racing. The company says it secures more than 1.3 billion human and machine credentials and works with 180,000 business customers.
Additionally, 1Password on Thursday announced it is bringing on former ChargePoint and Barracuda Networks executive Michael Hughes. Former Qualtrics and SAP executive John Torrey will join as chief business officer.
Faugno said both executives complement the company’s strategy to lure larger enterprise customers.
Over the last year, 1Password has undergone a major C-suite shake-up.
Longtime leader Jeff Shiner, who ran 1Password for 13 years, transitioned into executive chair of the board in July. Faugno, who had been promoted to co-CEO a few months earlier, took over the role solely at that time. Faugno joined 1Password in 2023 as president and operating chief.
To date, 1Password has raised about $950 million and is valued at $6.8 billion, according to Pitchbook data. Other investors include actor Justin Timberlake, comedian Trevor Noah, CrowdStrike CEO George Kurtz and investment firm Iconiq, according to Pitchbook.
Faugno told CNBC that the company is weighing a possible IPO in 2026 or 2027, but isn’t “rushing out to go public.” He said 1Password remains focused on providing the best tools for its customers.
“We control our own destiny,” he said. “From a profitability perspective, we have investors that are playing the long game with us.”
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