Shares of Rubrik hit the New York Stock Exchange on Thursday, debuting at $38 a share. The cybersecurity company priced its shares at $32 apiece on Wednesday night, just a hair above its initial target range of $29 to $31 after raising $752 million. This share price gives Rubrik a fully diluted valuation of $6.6 billion, up 88% from its last base valuation of $3.5 billion in 2019.
Rubrik sells cloud-based security software to enterprise customers and has 1,700 customers with contracts over $100,000 and 100 customers who pay the company more than $1 million annually. According to Crunchbase data, the Silicon Valley startup was founded in 2014 and has raised more than $550 million in venture capital.
The VCs most hopeful that Rubrik’s stock will continue to climb are Lightspeed and Greylock. Lightspeed has backed the company in five separate rounds, including leading the company’s Series A round in 2015. Lightspeed, and its affiliates, owned 23.9% of Rubrik’s shares before the IPO, according to the company. S-1 Filing. The firm’s confidence in the company may stem from the fact that Rubric co-founder and CEO Bipal Sinha was previously a Lightspeed partner from 2010 to 2014. Sinha holds 7.6% of the shares.
Greylock holds 12.2% of Rubrik’s shares. The venture firm led the startup’s $41 million Series B round in 2016 and also participated in Series C and Series D rounds. Greylock partner Ashim Chandna has been on the company’s board since 2015.
Besides Sinha, Rubric’s other two co-founders have significant stakes. Arvind Jain, a co-founder who is now CEO of AI work assistant startup Glean, holds a 7% stake. Arvind Natharakship, co-founder and current Rubrik CTO, holds 6.7%.
Other big name VCs also backed the company. Khosla Ventures led Rubrik’s Series C round in 2016. IVP led the company’s Series D round in 2017. and Bain Capital Ventures led the company’s Series E round in 2019. It’s unclear what percentage of shares these firms still own, but it’s less than 5%, as none of these investors were named in the company’s S-1. NBA All-Star Kevin Durant’s Thirty Five Ventures was also an investor.
Rubrik’s IPO results are under more scrutiny than some of the other recent public listings, as Rubrik’s debut looks more like a 2021 IPO and less like a 2024 IPO. Ibotta debuted as a profitable company. Astera Labs and Reddit both recently reported increases in GAAP net profit. However, Rubrik is an unprofitable business because its losses continue to grow, not shrink.
The company reported that its revenue fell less than 5 percent from its 2023 fiscal year to its 2024 fiscal year, rising from $599.8 million to $627.9 million. At the same time, the company’s losses continued to rise: its net loss increased from 46% in its fiscal year 2023 to 56% in its fiscal year 2024.
There is one bright spot in the company’s metrics, however: subscription revenue. In the company’s most recent fiscal quarter, subscriptions made up 91% of revenue, up from 73% a year earlier. Subscription revenue is sticky, and growth there may explain why some investors are more confident about Rubrik’s future prospects despite its current losses and lack of profitability.
Rubrik is the fourth venture-backed company to go public in recent months as investors look eager to reopen the IPO market. The three companies that preceded Rubrik — Ibotta, Reddit and Astera Labs — popped on the first day of trading and have since all settled, some in better positions than others. But there have been no dooms or negative omens for other potential IPOs this year.
While four positive IPO debuts could spur more companies to exit, current guidance that a rate cut may not come as early as 2024 as many had predicted would reflect the recent momentum of the IPO market. can affect
Credit : techcrunch.com
