Rubrik shares hit the New York Inventory Alternate Thursday debuting at $38 a share. The cybersecurity firm priced it shares at $32 apiece Wednesday evening, only a hair over its preliminary goal vary of $29 to $31 after elevating $752 million. This share worth offers Rubrik a completely diluted valuation of $6.6 billion, up 88% from its final major valuation of $3.5 billion in 2019.
Rubrik sells cloud-based safety software program to enterprise prospects and has 1,700 prospects with contracts price greater than $100,000 and 100 prospects who pay the corporate greater than $1 million a yr. The Silicon Valley startup was based in 2014 and has raised greater than $550 million in enterprise capital, in line with Crunchbase knowledge.
The VCs hoping probably the most that Rubrik’s inventory retains climbing are Lightspeed and Greylock. Lightspeed backed the corporate in 5 separate rounds, together with main the corporate’s Sequence A spherical again in 2015. Lightspeed, and people affiliated with it, personal 23.9% of Rubrik’s shares previous to the IPO, in accordance the corporate’s S-1 submitting. The corporations’ conviction within the firm may come from the truth that Rubrik co-founder and CEO, Bipul Sinha, was previously a companion at Lightspeed from 2010 to 2014. Sinha owns 7.6% of shares.
Greylock holds 12.2% of Rubrik’s shares. The enterprise agency led the startup’s $41 million Sequence B spherical in 2016 and took part within the Sequence C and Sequence D rounds as effectively. Greylock companion Asheem Chandna has sat on the corporate’s board since 2015.
Along with Sinha, Rubrik’s different two co-founders maintain notable stakes. Arvind Jain, a co-founder who’s now the CEO of AI work assistant startup Glean, holds a 7% stake. Arvind Nithrakashyap, co-founder and present Rubrik CTO, holds 6.7%.
Different big-name VCs backed the corporate, too. Khosla Ventures led Rubrik’s Sequence C spherical in 2016; IVP led the corporate’s Sequence D spherical in 2017; and Bain Capital Ventures led the corporate’s Sequence E spherical in 2019. It’s unclear what proportion of shares these corporations nonetheless personal, nevertheless it’s below 5%, as none of those buyers have been named within the firm’s S-1. NBA All-Star Kevin Durant’s Thirty 5 Ventures was additionally an investor.
The outcomes of Rubrik’s IPO are below extra scrutiny than a number of the different latest public listings, as a result of Rubrik’s debut seems to be extra like a 2021 IPO and fewer like the opposite 2024 IPOs. Ibotta debuted as a worthwhile firm. Astera Labs and Reddit each had just lately swung to a GAAP web revenue. Rubrik, nevertheless, is as an unprofitable enterprise seeing its losses proceed to develop, not shrink.
The corporate reported that its income grew somewhat below 5% from its fiscal 2023 yr to its fiscal 2024 yr, rising from $599.8 million to $627.9 million. On the identical time, the corporate’s losses continued to develop: Its web losses grew from 46% in its fiscal 2023 to 56% in its fiscal 2024 yr.
The corporate’s metrics do have a shiny spot, nevertheless: subscription income. Within the firm’s most up-to-date fiscal quarter, subscriptions made up 91% of the income, up from 73% a yr prior. Subscription income tends to be sticky, and development there might clarify why some buyers are extra assured concerning the future prospects of Rubrik regardless of its present losses and lack of profitability.
Rubrik is the fourth venture-backed firm to go public in latest months as buyers appear wanting to reopen the IPO market. All three firms that went earlier than Rubrik — Ibotta, Reddit and Astera Labs — popped on the primary day of buying and selling and have all since settled, some in higher positions than others. However none has been a catastrophe or unfavourable omen for different potential IPOs this yr.
Whereas 4 constructive IPO debuts might spark extra firms to return off of the sidelines, the present steering that rate of interest cuts could not come as early in 2024 as many had predicted could put a damper on the the IPO market’s latest momentum.
