Rubrik, a data-management software company founded by Bipul Sinha, has recently priced its IPO at $32 per share, exceeding its expected range. The 10-year-old company sold 23.5 million shares and raised $752 million in its initial public offering, valuing the company at $5.6 billion. Rubrik is set to trade under the ticker symbol “RBRK” on the New York Stock Exchange.
This move comes at a time when the IPO market for venture-backed tech companies has been slow, with concerns about the economy and rising interest rates keeping investors cautious. Despite these challenges, Rubrik’s decision to go public at this time showcases the company’s confidence in its growth potential and the demand for its cloud-based cybersecurity software.
Rubrik’s shift towards subscription-based revenue has been a strategic move, with 91% of its revenue now coming from subscriptions, up from 59% two years ago. This shift has helped the company increase its annual recurring revenue from subscriptions by 47%. With top clients like Barclays, Carhartt, and Home Depot, Rubrik has positioned itself as a key player in the data management and cybersecurity space.
However, it is worth noting that Rubrik’s losses have widened in the latest fiscal year, with a reported net loss of $354 million compared to around $278 million in the prior year. Despite this, the company’s strategic partnerships with investors like Microsoft and Lightspeed Ventures showcase confidence in Rubrik’s long-term growth potential.
In my opinion, Rubrik’s decision to go public at this time reflects the company’s confidence in its product offerings and growth strategy. The shift towards subscription-based revenue has proven to be a smart move, as evidenced by the increase in annual recurring revenue. While the widening losses are a concern, the strategic investments from key partners indicate strong support for Rubrik’s future success in the competitive tech market.
Overall, Rubrik’s IPO is a significant milestone for the company and a testament to its potential for growth and innovation in the data management and cybersecurity space. It will be interesting to see how Rubrik continues to navigate the challenges of the tech market and capitalize on its strengths to drive long-term success.