Microsoft-backed data security company Rubrik announces IPO plans

Data security software vendor Rubrik, Inc. announced today that it has filed for an initial public offering. This is the latest in a growing number of technology companies to announce such plans this year, after a long period of stagnation dating back to 2021.

The company was founded nine years ago and initially sold hardware that businesses could use to back up their most important data in a modern way compared to traditional data storage providers. It has since pivoted to the cloud, and the majority of its revenue now comes from data security software that detects, analyzes and remediates security risks and unauthorized user activity, the company said in a filing. Competitors include Dell Technologies Inc., IBM Corp., Veeam Inc., and Cohesity Inc.

Rubrik said in a filing that it plans to list its shares on the New York Stock Exchange under the ticker symbol “RBRK.” For the fiscal year ending January 2024, it recorded revenue of $627.9 million, up 5% year-on-year, but its net loss widened to $354.2 million from $277.7 million a year earlier, and it remains There is no profit.

In the last fiscal year, more than three-quarters of its revenue was spent on sales and marketing. The company did not disclose the size of its initial public offering, which it did not do when reports of an IPO first emerged last year. It was reported that the company is aiming to raise approximately $500 million to $750 million.

The announcement added to the momentum surrounding this year’s IPOs, reinvigorating them after almost three years of little activity. In March, social media platform Reddit Inc. and database company Astera Labs Inc. both launched IPOs that met their fundraising targets and saw their stock prices rise on the first day of trading.

Their success likely sparked the interest of other companies. Last week, digital marketing software company Ibotta Inc. and commodity trading platform Marex Group Plc both announced plans for impending IPOs.

In the first quarter, 48 companies raised about $9.6 billion through IPOs on U.S.-based exchanges, compared with just $3.8 billion for 46 companies in the same period last year, according to Bloomberg data.

Prior to this, the last two major tech IPOs in the US were Instacart and Klaviyo Inc., both of which went public in September 2023 and received strong reception from Wall Street investors.

After a record year in 2021, the IPO market cooled significantly as soaring inflation and rising interest rates combined to drive investors out of the technology industry and other risky businesses. The stagnation in IPOs also had the ripple effect of reduced investment in private companies.

Rubrik was co-founded by CEO Bipul Sinha (pictured) and Arvind Jain, Soham Mazumdar and Arvind Nithrakashyap. Key backers include Lightspeed Venture Partners and Microsoft Corp. Microsoft Corp. also sells its cloud services to his Rubrik. Rubrik disclosed in its prospectus that it is committed to investing $220 million in Microsoft’s Azure public cloud over the next 10 years.

Lightspeed, which previously employed Mr. Sinha, led Rubrik’s first funding round in 2015 and is its sole largest shareholder with a 24% stake, filings show. Ta. Greylock Partners holds 12% stake in him, followed by his Sinha who owns 7.6% of the company’s shares, Jain with 7% and Nithrakashyap with his 6.7%.

Similar to Reddit before it, Rubrik will create a direct share program that will offer IPO shares to specific partners, friends, and family. As of January 2024, the company has 3,100 employees and more than 6,100 customers.

Goldman Sachs, Barclays, Citigroup and Wells Fargo are the lead managers for the sale.

Last year, Sinha appeared on theCUBE, SiliconANGLE Media’s mobile livestreaming studio, to discuss the company’s ambitious plans to reinvent cybersecurity with a vision of an AI-driven supercloud approach to protecting data. explained.