Rubrik Inc., a startup specializing in cloud and data security and backed by Microsoft Corp., has filed for an initial public offering (IPO), revealing both growing revenue and losses.
The IPO is being led by Goldman Sachs Group Inc., Barclays Plc, Citigroup Inc., and Wells Fargo & Co., as stated in Monday’s filing with the US Securities and Exchange Commission, confirming a Bloomberg News report. Rubrik intends to list its shares on the New York Stock Exchange under the symbol RBRK.
The size and price of Rubrik’s planned share will be disclosed in a subsequent filing. It is anticipated that the company could aim to raise between $500 million to $700 million in its IPO, a report by Bloomberg News suggested in September.
This filing adds to the lineup of companies planning to go public following the successful IPOs last month by social media platform Reddit Inc. and semiconductor connectivity company Astera Labs Inc., which met or exceeded their IPO fundraising targets and saw gains in their trading debuts. Other companies like digital marketing software firm Ibotta Inc. and commodities dealer Marex Group Plc have also filed for IPOs since then.
In a letter to investors included in the prospectus, Rubrik’s Chief Executive Officer and Chairman Bipul Sinha emphasized the pervasive threat of cyberattacks to governments and businesses alike. Sinha highlighted the company’s growth and unwavering commitment to cybersecurity.
Founded in 2013, Rubrik released its first product in 2016 and now boasts over 6,100 customers, including prominent financial institutions and corporations like Goldman Sachs, Barclays, Citigroup, Home Depot Inc., PepsiCo Inc., Illumina Inc., Fiserv Inc., and the Denver Broncos.
According to the filing, Rubrik’s subscription annual recurring revenue surged by 47% as of Jan. 31 compared to the previous year. However, the Palo Alto, California-based company reported a net loss of $354 million on revenue of $628 million for the year ended Jan. 31, compared to a loss of $278 million on revenue of approximately $600 million the previous year.
Microsoft made an equity investment in Rubrik in 2021, valuing the startup at $4 billion. Rubrik, supported by other investors like Bain Capital Ventures, Lightspeed Venture Partners, Greylock Partners, and Khosla Ventures, has raised $1.18 billion to date, according to data provider PitchBook.
Through its collaboration with Microsoft, Rubrik has committed to spending $220 million over a potential duration of up to 10 years for the use of Azure, Microsoft’s cloud computing platform, to bolster its data security solutions. This partnership will also see Rubrik prioritize offering public cloud functionality for Azure to its customers, as outlined in Monday’s filing.
As detailed in the filing, Lightspeed affiliates currently hold approximately 24% of the company’s Class B shares, while Greylock controls about 12%. Sinha, one of the company’s co-founders, currently owns 7.6% of the Class B shares, while co-founder and Chief Technology Officer Arvind Nithrakashyap owns a 6.7% stake. These shares will carry 20 votes each, compared to one vote each for the Class A shares set to be sold in the IPO.
