Rubrik shares hit the New York Inventory Change Thursday, debuting at $38 a share. The cybersecurity firm priced its shares at $32 apiece Wednesday night time, 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 main valuation of $3.5 billion in 2019.
Rubrik sells cloud-based security software program to enterprise clients and has 1,700 clients with contracts value greater than $100,000 and 100 clients who pay the corporate greater than $1 million a 12 months. The Silicon Valley startup was based in 2014 and has raised greater than $550 million in enterprise capital, based on Crunchbase information.
The VCs most hoping 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, owns 23.9% of Rubrik’s shares previous to the IPO, in accordance the corporate’s S-1 submitting. The corporations’ conviction within the firm would possibly 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, however it’s underneath 5%, as none of those traders 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 underneath extra scrutiny than a few of the different latest public listings, as a result of Rubrik’s debut appears to be like extra like a 2021 IPO and fewer like the opposite 2024 IPOs. Ibotta debuted as a worthwhile firm. Astera Labs and Reddit each had not too long ago swung to a GAAP internet revenue. Rubrik, nevertheless, is an unprofitable enterprise seeing its losses proceed to develop, not shrink.
The corporate reported that its income grew a bit underneath 5% from its fiscal 2023 12 months to its fiscal 2024 12 months, rising from $599.8 million to $627.9 million. On the similar time, the corporate’s losses continued to develop: Its internet losses grew from 46% in its fiscal 2023 to 56% in its fiscal 2024 12 months.
The corporate’s metrics do have a vivid 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 12 months prior. Subscription income tends to be sticky, and progress there might clarify why some traders are extra assured in regards to the future prospects of Rubrik regardless of its present losses and lack of profitability.
Whereas 4 constructive IPO debuts might spark extra corporations to return off the sidelines, the present steerage that rate of interest cuts might not come as early in 2024 as many had predicted might put a damper on the IPO market’s latest momentum.
