Bipul Sinha, co-founder and CEO of data security software company Rubrik. Mr. Sinha previously backed cloud management company Nutanix.
Greylock Partners
Rubrik is a data management software company backed by: microsoftThe IPO was priced at $32 per share, according to people familiar with the matter. This is above the expected range.
The 10-year-old company will sell 23.5 million shares ahead of its New York Stock Exchange debut on Thursday, and will trade under the ticker symbol “RBRK,” the person said. Rubrik raised $752 million through an initial public offering, valuing the company at $5.6 billion.
The company said in a statement last week. filing He said he expects the offering price to be between $28 and $31 per share.
Rubrik is entering the public market at a time when venture-backed tech IPOs are at a historic low point, especially for companies that sell to corporations. The IPO market has been largely shut down since the second half of 2021 as investors retreated from risky assets due to concerns about a worsening economy and rising interest rates.
Startups remained private longer, realigning their funding and waiting for better terms. The exit of private tech companies has been slow in recent months, even as interest rates have stabilized and the broader tech market has recovered.
instacart Software vendor Klaviyo went public in September, marking the first venture-backed technology deal in the U.S. since 2021. reddit It went public last month, a day after its Nasdaq debut. Astera Research Institutesells data center connectivity chips.
Rubrik initially sold perpetual licenses and set up maintenance contracts for hardware that could handle data storage functions such as backup and compression. In recent years, the company has moved to cloud-based cybersecurity software subscriptions. Businesses can use this software to protect cloud applications and data in public clouds and prevent data loss due to ransomware attacks.
Rubrik now derives 91% of its revenue from subscriptions, up from 59% two years ago. Annual recurring revenue from subscriptions increased 47%, while revenue grew less than 5% for the fiscal year ended Jan. 31.
The company said that at the end of the year, approximately 100 customers had contributed more than $1 million in subscription ARR. Customers include Barclays, Carhartt and Home Depot.
“Our key top-line metric is subscription ARR,” Kiran Chaudhary, head of finance at Rubrik, said in a video-recorded presentation at the company’s IPO roadshow.
But Rubrik’s losses are mounting. The company reported a net loss of $354 million in its most recent fiscal year, compared to a net loss of approximately $278 million in the previous year.
Microsoft invested in Rubrik in 2021 at a valuation of $4 billion. Lightspeed, a venture firm where CEO Bipul Sinha was once a partner, will have more than 25% voting power after the IPO. Sinha’s control will be 8%.
