Increase of Annual Recurring Revenue (ARR) and Platform Customers in 2020, New Executive Hires, Industry Sector Diversity, Wider Global Presence Combine to Propel Company’s Expansion in 2021
HANOVER, Md. – Dragos Inc., the global leader in cybersecurity for industrial controls systems (ICS)/operational technology (OT) environments, today announced that the company grew its annual recurring revenue (ARR) in 2020 by over 80% and increased the number of Dragos Platform customers by over 200% year-over-year. These metrics – coupled with the December 8, 2020 announcement of a record-setting1 $110 million Series C funding – establish a growth trajectory for the firm that continues to outpace the industry in the large and rapidly expanding market for ICS/OT cybersecurity solutions and delivers a durable foundation for the advancement of its business through 2021.
“2020 was a challenging year by any measure,” said Robert M. Lee, Chief Executive Officer and Co-Founder, Dragos, Inc. “The broader ICS/OT community, along with customers, have confronted multiple challenges as they struggled with a lack of visibility into industrial networks, an increase in ICS-specific threats and, in the midst of a sweeping shift to remote work, a more hyperconnected environment. We are deeply appreciative of the trust that so many organizations have placed in us to help them defend the most critical components of their businesses. Through our commitment to partnership during these trying times, we have forged new long-term relationships and established ourselves as a key ally to customers and the community.”
Product innovation is a major focus for Dragos in 2021 as it continues to arm customers with visibility in their industrial networks to identify their assets and understand their network communications, while also enabling them to respond to the increase in ICS/OT-specific cybersecurity threats and new attack methods. In 2020, more than a dozen state-sponsored threat groups targeted industrial networks specifically and 20% of these groups targeted organizations that were using the Internet to access industrial operations from a remote location. As companies made a necessary shift to remote connectivity during the pandemic, their exposure to this potential risk became more widespread, a trend that will continue to accelerate as the workplace transforms in the coming years.
“In a world where adversaries’ sophisticated capabilities develop in parallel with the digital transformation and connectedness across business and industry, it is mission critical to select partners with the unique expertise required to defend against ICS/OT cybersecurity threats,” said Byron Knight, Managing Director of Koch Disruptive Technologies. “We have invested in Dragos because they have a relentless focus on bringing the absolute best in talent, technology, and innovation to the forefront of the effort to maintain the continuity and resiliency of our industrial operations.”
In addition to the growth of its core business, Dragos strengthened its customer portfolio within the electric and oil and gas sectors while broadening the customer base for its technology platform and services across a diverse set of industries including manufacturing, mining, chemicals, technology, and transportation. In 2020 Dragos brought 112 new employees on board, including significant executive hires in the realms of security, customer success, product engineering, and legal counsel to augment the company’s talented leadership team.
Recent executive hires include Steve Applegate in the role of Chief Information Security Officer (CISO). Steve has extensive experience as a security leader with industrial organizations in aviation, electric, oil and gas, and manufacturing. Experienced intellectual property and cybersecurity attorney, Meg Kammerud, has come aboard to serve as the firm’s General Counsel. Industry veteran, Chris Carlson, brings more than 20 years of product management expertise across security hardware and software to the role of Vice President of Product. Kate Kawalek, joins Dragos as Vice President of Customer Success responsible for unifying and elevating the customer experience throughout all departments.
Dragos has stepped up the expansion of its worldwide business operations in the first quarter of 2021. Openings of new offices in the Middle East and Europe are planned with hiring already taking place in these locations. The company also intends to increase its existing presence in Australia and New Zealand, and will be opening a regional headquarters in Melbourne, Australia equipped with a training center and ICS ranges to help customers develop their workforce.
1 Assessment based on information provided by financial data company, Pitchbook, and publicly available sources.