Rubrik, a data security startup, is primed to be the latest tech firm to test the public markets. The company late Monday filed a plan for an initial public offering on the New York Stock Exchange, following strong debuts from chip connectivity firm Astera Labs and social media company Reddit.
The Rubrik IPO comes as generative artificial intelligence has brought greater investor attention to cybersecurity and data management companies. Founded in 2014, the Palo Alto, Calif.-based Rubrik sells software designed to secure data in the cloud. The company says it relies on "zero trust" principles to prevent hacks and other unauthorized access to enterprise data.
"We believe that the future of cybersecurity is data security — if your data is secure, your business is resilient," the company said in its S-1 filing with the Securities and Exchange Commission.
Rubrik didn't disclose how many shares it plans to offer or its planned price range. According to a Bloomberg report in September, Rubrik is looking to raise $500 million to $700 million through the IPO.
Strong debuts for Reddit and Astera may have helped restart the IPO market, which has been slow for nearly two years now. The Rubrik IPO would be the largest new cybersecurity software listing so far this year.
Rubrik IPO: Annual Revenue Up 5%, Loss Widens
Rubrik recorded $628 million in revenue for its fiscal 2024, which ended in January. That's a roughly 5% increase from its previous fiscal year.
Meanwhile, the company's net loss widened to $354 million for its most recent fiscal year, compared with a $278 million loss the year before. The company's filing said it has "continued to invest in growing our business and advancing our solutions to capitalize on our market opportunity."
Rubrik started as a hardware company but now sells its main product as subscription software. Subscription sales accounted for about 85% of the company's revenue last year.
As of Jan. 31, Rubrik had more than 6,100 customers, according to its filing, up from roughly 5,000 a year earlier. The list of customers includes Goldman Sachs, Home Depot, PepsiCo, the Scottish government, Fiserv and the Denver Broncos, according to Rubrik's filing.
Rubrik is led by Chief Executive Bipul Sinha, who was a partner at Lightspeed Venture Partners before founding the company.
In its filing, Rubrik said it competes with Commvault Systems, IBM and Dell Technology, among others.
Rubrik Investors
Microsoft is one of the company's prominent investors. The tech giant invested in Rubrik in 2021 at a reported valuation of $4 billion. The deal also included a strategic partnership between Microsoft and Rubrik.
Other investors include Bain Capital Ventures, Lightspeed, Greylock Partners and Khosla Ventures. Lightspeed is the company's largest shareholder, with a 24% stake.
Further, Rubrik recently announced a strategic partnership with cybersecurity firm CrowdStrike. The partnership links the CrowdStrike Falcon threat-detection platform with the Rubrik Security Cloud. Following the announcement, software analysts with Stifel wrote to clients that "data security is an increasingly important security priority that a number of modern security vendors are looking to tackle including CrowdStrike, Palo Alto, Zscaler, and Cloudflare, among others."
