Data security software company Rubrik, priced its IPO at $32 a share, valuing the company at $5.6 billion. Microsoft-backed Rubrik raised $752 million and is expected to debut on the New York Stock Exchange under the ticker symbol “RBRK.” The IPO comes amid a slow period for venture-backed tech IPOs, and Rubrik now relies on subscriptions for cloud-based cybersecurity software, with 91% of its revenue coming from subscriptions. However, despite revenue growth, the company's losses have widened, with a net loss of $354 million in the latest fiscal year.
Key Takeaways
- Rubrik, a data management software company backed by Microsoft, priced its IPO at $32 a share, above its expected range, raising $752 million.
- The company is hitting the public market during a slow period for venture-backed tech IPOs, which have largely been shut since late 2021.
- Rubrik has shifted towards subscriptions for cloud-based cybersecurity software, with 91% of its revenue now coming from subscriptions.
- Annual recurring revenue from subscriptions jumped 47%, with almost 100 customers contributing over $1 million in subscription ARR.
- However, Rubrik's losses widened, reporting a $354 million net loss in the latest fiscal year.
Analysis
Bipul Sinha's data security company Rubrik priced its IPO at $32 a share, valuing the company at $5.6 billion amid a slow period for venture-backed tech IPOs. Rubrik's reliance on subscriptions for cloud-based cybersecurity software, with 91% of its revenue from subscriptions, indicates a strategic shift. This may impact tech giants like Microsoft, which backed Rubrik, and competitors in the cybersecurity software industry. The substantial losses reported may raise concerns about long-term sustainability and investor confidence. In the short term, the IPO's success could signal a revival in tech IPOs, but the widening losses may lead to increased scrutiny and potential market volatility in the long term.
Did You Know?
- Initial Public Offering (IPO): An IPO is the process by which a private company offers shares to the public for the first time, allowing it to raise capital from external investors. It is a significant event in a company's lifecycle and can provide insights into its financial health and growth prospects.
- Cloud-based cybersecurity software: This refers to security solutions that are delivered over the internet, typically on a subscription basis, to protect data and systems stored in the cloud. The shift towards cloud-based cybersecurity software reflects the increasing importance of protecting digital assets in an online environment.
- Annual Recurring Revenue (ARR): ARR is a key metric for subscription-based businesses, representing the amount of revenue that a company expects to receive from subscriptions on an annual basis. It is a measure of the stability and predictability of a company's revenue stream.