Data security software firm Rubrik got off to a strong start in its trading debut Thursday, as shares rallied more than 20% in initial trades. The company debuted on the New York Stock Exchange after the Rubrik IPO priced at 32 per share, ahead of its guided range of 28 to 31.
On the stock market today, Rubrik stock settled into a 15.6% gain to close at 37.00. With 23.5 million shares in the IPO, Palo Alto, Calif.-based company will raise $752 million through the listing.
Founded in 2014, 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. Microsoft is one of the company's prominent investors. Microsoft invested in Rubrik in 2021 in a deal that reportedly valued the company at $4 billion. The deal also included a strategic partnership between Microsoft and Rubrik.
Rubrik IPO: Fiscal Year Revenue Up 5%, Loss Widens
Rubrik is looking to follow up on strong debuts from chip connectivity firm Astera Labs and social media company Reddit last month. Both companies popped on their first days trading. Since then, Astera Labs has more successfully held onto its gains than Reddit.
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 IPO 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.
