Gong, a startup that utilizes artificial intelligence to forecast revenue from potential sales, has announced that it has surpassed $300 million in annualized recurring revenue, as revealed on Wednesday.

Since its inception in 2016, Gong has been leveraging AI to analyze interactions with customers, and the integration of generative AI capabilities in recent years has significantly contributed to the company’s growth.

According to Gong CEO Amit Bendov, “We are witnessing significant momentum, which is why we are excited to share these numbers” in an interview with TechCrunch.

Gong’s valuation was last reported at $7.25 billion when it secured a $250 million Series E funding round in 2021, led by Franklin Templeton and participated by Coatue, Salesforce Ventures, Sequoia, Thrive Capital, and Tiger Global.

Many companies that received funding in 2020 and 2021 were given inflated valuations relative to their revenue, and have since struggled to justify these valuations.

Assuming Gong’s valuation remains at $7.25 billion, the latest ARR figure implies that the company is now valued at approximately 24 times ARR, placing it in the same category as some of the largest and most closely watched AI companies.

However, Gong’s valuation may still be elevated compared to certain newer, exceptionally fast-growing AI startups, such as Anysphere, the developer of the AI-powered coding assistant Cursor, which was recently valued at 25 times ARR. Anysphere achieved $100 million in ARR from a low single-digit million in less than a year. (Investors typically assign higher valuation multiples to startups with faster growth rates.)

Although Bendov did not disclose Gong’s revenue growth, he stated that it falls within the range of “top-quartile public SaaS companies.” (The Bessemer Ventures Cloud Index indicates that top cloud companies have annual revenue growth rates between 25% and 56%.) The company’s 4,500 corporate customers include prominent companies such as Canva, Google, LinkedIn, and Square, according to Bendov.

Gong’s current ARR and growth trajectory likely position the company for an initial public offering (IPO), and Bendov acknowledged that a public offering would be a significant milestone, although it is not planned for 2025. “[An IPO] is very interesting, but not the most important thing; we are focused on building exceptional products,” he said.

Regarding the possibility of raising another round from venture sources, Bendov stated that Gong is nearly profitable and still has a significant amount of cash from its 2021 funding round. “We have almost not touched it,” he added.