1Password at $265M ARR

Key points via Sacra AI:

Like Dropbox's struggle with files, 1Password made it easy to quickly create, store and share passwords and secrets—but now faces disintermediation with the rise of passwordless authentication, which replaces passwords with biometrics (Touch ID), hardware/software tokens (YubiKeys), and magic links (Stytch). 1Password bootstrapped profitably to $60M annual recurring revenue (ARR) in 2019 before raising a $200M Series A from Accel en route to $200M ARR at the end of 2022.
Sacra estimates that 1Password hit $265M ARR at the end of 2023, still growing at 30%+ year-over-year as they've expanded from individuals to families to SMBs to the enterprise. Compare to Okta (NASDAQ: OKTA) with $1.9B of revenue for 2023, up 43% year-over-year, and LastPass, which Sacra estimates hit $250M ARR at the end of 2023, up 14% year-over-year.
In the enterprise, 1Password now competes with Rippling ($350M ARR), which bundles authentication into device management, and Okta, which launched the free Okta Personal into their extended IAM platform—in prosumer, they're threatened through the browser (Chrome’s in-built password manager) and the device (Apple's new native Passwords app). To escape these competitive dynamics, 1Password is integrating into enterprise workflows around access management (Okta), device security (Microsoft Intune), and devsecops (HashiCorp), with B2B revenue now accounting for 60% of total revenue, up from 33% in 2019.

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1Password revenue, growth, and valuation