Rubrik, a data security software vendor, recently filed to go public, becoming the latest venture-backed company to make this move after a period of inactivity in the market. The Silicon Valley company initially sold hardware for data backup but has since shifted to cloud-based software that focuses on detecting, analyzing, and remediating data security risks and unauthorized user activities. Rubrik’s competitors include Dell, IBM, Veeam, and Cohesity, and it plans to trade on the New York Stock Exchange under the ticker symbol “RBRK.” Despite a revenue increase of about 5% to $627.9 million in the fiscal year ended January, the company’s net loss also widened to $354.2 million.
After a dry spell that lasted over two years, the market for initial public offerings is beginning to show signs of life, with companies like Reddit and Astera Labs recently going public with successful launches. However, the last two venture-backed tech IPOs in the U.S. before Rubrik were Instacart and Klaviyo in September 2023, which did not perform as well due to factors like rising inflation and interest rates pushing investors away from tech and other risky assets. Rubrik’s CEO, Bipul Sinha, previously invested in Nutanix before its 2016 public offering and co-founded Rubrik in 2014 with Arvind Jain, Soham Mazumdar, and Arvind Nithrakashyap. Rubrik is backed by Microsoft and is committed to spending $220 million over up to 10 years on Microsoft’s Azure public cloud.
Lightspeed Venture Partners, which led Rubrik’s first round of funding in 2015, is the company’s biggest shareholder with a 24% stake. Greylock Partners holds a 12% stake, while Sinha owns 7.6%, and Jain and Nithrakashyap own 7% and 6.7%, respectively. Rubrik has 3,100 employees and 6,100 clients as of January, with 76% of its revenue coming from three channel partners – Arrow Enterprise Computing Solutions, Exclusive Networks, and Promark Technology. The company also has a directed share program, similar to Reddit, allowing certain partners, friends, and family members to purchase IPO shares.
Rubrik’s revenue in the fiscal year ended January rose to $627.9 million, but its net loss also widened to $354.2 million. Over three-quarters of the company’s revenue went towards sales and marketing expenses in the latest fiscal year. Despite the challenges faced by tech companies in the public and private markets following a record IPO year in 2021, Rubrik’s move to go public indicates optimism and potential opportunities for growth in the market. With support from investors like Lightspeed Venture Partners and partnerships with companies like Microsoft, Rubrik is aiming to capitalize on its expertise in data security software and cloud technology to drive its future success in the public market.
