The cybersecurity startup 1Password, backed by Hollywood stars Ryan Reynolds, Scarlett Johansson, and Matthew McConaughey, just crossed a major milestone - topping $400 million in annual recurring revenue. The Toronto-based company is riding a wave of AI-driven cyber threats that's forcing enterprises to dramatically upgrade their security infrastructure, positioning it for what CEO David Faugno calls "an even bigger opportunity" ahead.
1Password just hit a revenue milestone that puts it squarely in the big leagues of cybersecurity. The password manager, which counts some serious Hollywood firepower among its investors, crossed $400 million in annual recurring revenue - a 60% jump from the $250 million it reported in 2023.
The timing couldn't be better. AI has fundamentally changed the cybersecurity game, creating both new attack vectors and driving unprecedented demand for enterprise security tools. "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 isn't just talking big - he's projecting the company will hit $1 billion in ARR within the next "several years." That's ambitious, but the market conditions are lining up perfectly. The surge in AI-powered cyberattacks has enterprises scrambling to upgrade their security infrastructure, and password management sits right at the center of that rush.
The company's client roster reads like a who's who of the enterprise world: IBM, Salesforce, Perplexity AI, and even the Golden State Warriors. They've also locked in a multiyear deal with Formula 1 team Oracle Red Bull Racing. All told, 1Password now secures more than 1.3 billion human and machine credentials across 180,000 business customers.
But it's the investor lineup that really turns heads. Beyond the celebrity backing from Reynolds, Johansson, and Matthew McConaughey, the company has attracted serious industry players including CrowdStrike CEO George Kurtz, Justin Timberlake, comedian Trevor Noah, and investment firm Iconiq. The company has raised about $950 million to date and carries a $6.8 billion valuation, according to Pitchbook data.
