Bipul Sinha, co-founder and CEO of data security software company Rubrik. Sinha previously backed cloud management company Nutanix.
Greylock Partners
Rubrik, a data management software company backed by MicrosoftAccording to people familiar with the matter, its IPO price is US$32 per share. This is beyond its intended scope.
The 10-year-old company sold 23.5 million shares ahead of its debut on the New York Stock Exchange on Thursday and will trade under the ticker “RBRK,” the person said. Rubrik raised $752 million in its initial public offering, valuing the company at $5.6 billion.
The company said in a statement last week Archive The offering price is expected to be $28 to $31 per share.
Rubrik hits the public markets at a time of historic downturn for venture capital-backed tech IPOs, particularly for companies that sell to enterprises. The IPO market has been largely shut down since late 2021, as concerns about a deteriorating economy and rising interest rates forced investors out of risky assets.
Startups stay private longer, retooling their finances and waiting for better conditions. While interest rates have stabilized and the overall tech market has rebounded over the past few months, private tech companies have remained slow to exit.
Instant shopping cart Software provider Klaviyo went public in September, the first U.S. venture-backed technology deal since 2021. Reddit It went public last month a day after listing on Nasdaq Astra Labsselling data center connection chips.
In its early days, Rubrik sold perpetual licenses and established maintenance contracts for the hardware that could handle data storage functions such as backup and compression. In recent years, the company has shifted to subscription cloud-based cybersecurity software. Enterprises can use the software to protect data in cloud applications and public clouds and prevent data loss during ransomware attacks.
Rubrik now generates 91% of its revenue from subscriptions, up from 59% two years ago. Revenue grew less than 5% in the fiscal year ended Jan. 31, but annual recurring revenue from subscriptions grew 47%.
The company said nearly 100 customers contributed more than $1 million in subscription ARR as of the end of the fiscal year. Clients include Barclays, Carhartt Bank and Home Depot.
“Our key revenue metric is subscription ARR,” Rubrik chief financial officer Kiran Choudary said in a video presentation of the company’s IPO roadshow.
Rubrik’s losses, however, were growing. The company reported a net loss of $354 million in its last fiscal year, compared with a net loss of about $278 million the year before.
Microsoft invested in Rubrik in 2021 at a reported valuation of $4 billion. Lightspeed, a venture capital firm where CEO Bipul Sinha was a partner, will have more than 25% of the voting rights after the IPO. Sinha will have 8% control.
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