Cato Networks Surpasses $200 Million, Doubles ARR in Under Two Years

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Cato Networks LTD.

29 Jul, 2024, 12:30 GMT

SASE category creator expands to more than 2,500 enterprise customers

TEL AVIV, Israel, July 29, 2024 /PRNewswire/ -- Cato Networks, the creator of SASE, today 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 platformization.

"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, contextualized 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."

Today, Cato also announced more than 2,500 enterprise customers embrace the Cato SASE Cloud Platform, with over 1,000 new customers in the past two years. Examples of global enterprises and leading brands that have chosen Cato, or expanded with the Cato SASE Cloud Platform, include:  

  • O-I Glass: The $7 billion leading glass bottle manufacturer, designing innovative glass packaging for the world's leading brands, has adopted the Cato SASE Cloud Platform to digitally transform the way glass bottles are designed and manufactured. With one platform, O-I was able to connect and secure 23,000 employees in approximately 150 factories and office locations across 20 countries worldwide.
  • Ryohin Keikaku: The Japanese business leader, behind the world-famous MUJI retail brand, recently selected Cato to connect and secure its 820+ retail and corporate offices and 3,200+ employees worldwide.
  • Sixt: The world-renowned car rental company connects and protects its locations and rental branches worldwide, as well as mobile users, with the Cato SASE Cloud Platform.
  • Vitesco Technologies: The $10 billion German automotive supplier and manufacturer, and a Cato customer since 2020, has 35,500 employees worldwide. The company recently expanded the Cato SASE Cloud Platform nearly 25% to over 90 connected locations and services and 24,000 remote users.

"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."

Recent Cato Networks Highlights

  • In July, Cato was named a Leader in the 2024 Gartner® Magic Quadrant™ for Single-Vendor SASE.
  • In June, Cato introduced the Cato MSASE Partner Platform, which gives vendor-level powers to channel partners to sell and deliver the best managed SASE service available today.
  • In May, Cato unveiled Cato CTRL (the company's threat intelligence team) alongside the inaugural Cato CTRL SASE Threat Report for Q1 2024.
  • In March, Cato was named a leader in the 2024 GigaOm Radar for Enterprise Firewalls. Also in March, Cato shattered the SASE throughput record by achieving 10 Gbps without hardware upgrades and further expanded its XDR capabilities for the Cato SASE Cloud Platform with Network Stories for Cato XDR.
  • In February, Cato reported GAAP* revenue growth of 59% in 2023 compared to 2022, more than twice the 29% five-year compound annual growth rate (CAGR) forecast from Gartner for the SASE market.
  • In January, Cato expanded the Cato SASE Cloud Platform into extended detection and response with Cato XDR, the world's first SASE-based XDR, and endpoint protection with Cato EPP.

Resources

*Generally Accepted Accounting Principles or GAAP

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About Cato Networks

Cato Networks delivers enterprise security and networking in a single cloud platform. With Cato, organizations replace costly and rigid legacy infrastructure with an open and modular SASE architecture based on SD-WAN, a purpose-built global cloud network, and an embedded cloud-native security stack. 

Want to learn why thousands of organizations secure their future with Cato? Visit us at www.catonetworks.com.