Crowdsourcing Security Issues Has Detectify at $1.5M in ARR

Hackers are getting smarter by the hour. Undetected vulnerabilities pop up all the time, leaving your applications and products wide open to threats.

Luckily, Detectify has built a website vulnerability scanner that helps you scan your web application for security issues crowdsourced by 150+ white-hat hackers. Their web security scanner performs fully automated tests to identify vulnerabilities on web applications and is continuously updated with new vulnerabilities that are submitted by the world’s biggest security research team of independent, ethical hackers.

How much is Detectify doing in ARR?

Detectify is a pure-play SaaS product that charges on a monthly basis. Their customers range between $50 per month and and in the six-figure ranges annually, with the average customer paying approximately $180 each month.

The company, launched 4 years ago, serves 700 paying customers today. They are currently doing $1.5M in ARR, according to CEO Rickard Carlsson, and have tripled revenue in the last 12 months.

What is Detectify’s churn?

Detectify has exhibited healthy churn to date. The company is currently at 2% monthly logo churn and has achieved net negative revenue churn of 1-2% overall. Carlsson notes that a majority of their churn has been attributed to their smaller customer segments, with the company displaying much better retention from their enterprise cohorts.

Organic traffic through “advanced and deep” content marketing has driven 80% of Detectify’s business to date. The company currently has a fully-weighted CAC of around $550 and receives payback within 4 to 5 months. Carlsson noted that the company estimates LTV to be around $4,500 at this point in time.

How much has Detectify raised?

Detectify has raised north of $8M to date with their most recent round coming in March of 2018 with Inside Venture partners. Their team of 30 full-time employees is based in Stockholm.