Rubrik prices IPO at $32 per share, above the expected range

Rubrik,
a
data-management
software
company
backed
by


Microsoft,
priced
its
IPO
at

$32
a
share.
That’s
above
its
expected
range.

The
10-year-old
company
sold
23.5
million
shares
ahead
of
its
New
York
Stock
Exchange
debut
on
Thursday
and
will
trade
under
the
ticker
symbol “RBRK.”
Rubrik
raised
$752
million
through
the
initial
public
offering,
valuing
the
company
at
$5.6
billion.

Last
week
the
company
said
in
a

filing
that
it
was
expecting
to
price
the
offering
at
$28
to
$31
per
share.

Rubrik
is
hitting
the
public
market
during
a
historically
slow
period
for
venture-backed
tech
IPOs,
particularly
when
it
comes
to
companies
that
sell
to
businesses.
The
IPO
market
has
been
largely
shuttered
since
late
2021,
as
concerns
about
a
worsening
economy
and
rising
interest
rates
pushed
investors
out
of
risky
assets.

Startups
have
stayed
private
for
longer,
recalibrating
their
finances
and
waiting
for
better
conditions.
Even
with
interest
rates
stabilizing
and
the
broader
tech
market
bouncing
back
over
the
past
recent
months,
private
tech
companies
have
been
slow
to
exit.

Instacart
and
software
vendor
Klaviyo
went
public

in
September,
the
first
venture-backed
tech
deals
in
the
U.S.
since
2021.


Reddit
went
public

last
month,
a
day
after
the
Nasdaq

debut
of


Astera
Labs,
which
sells
data
center
connectivity
chips.

Early
on,
Rubrik
sold
perpetual
licenses
and
set
up
maintenance
contracts
for
hardware
that
could
take
care
of
data
storage
functions
such
as
backup
and
compression.
In
recent
years,
the
company
has
shifted
toward
subscriptions
for
cloud-based
cybersecurity
software.
Businesses
can
use
the
software
to
secure
data
in
cloud
applications
and
in
public
clouds
and
prevent
data
loss
in
the
event
of
ransomware
attacks.

Rubrik
now
gets
91%
of
its
revenue
from
subscriptions,
up
from
59%
two
years
ago.
Revenue
increased
less
than
5%
in
the
fiscal
year
that
ended
on
Jan.
31,
but
annual
recurring
revenue
from
subscriptions
jumped
47%.

Almost
100
customers
were
contributing
over
$1
million
in
subscription
ARR
at
the
end
of
the
fiscal
year,
the
company
said.
Clients
include
Barclays,
Carhartt
and
Home
Depot.

“Our
key
top-line
metric
is
subscription
ARR,”
Rubrik
finance
chief
Kiran
Choudary
said
in
a
videotaped
presentation
for
the
company’s
IPO
roadshow.

However,
Rubrik’s
losses
are
widening.
The
company
reported
a
$354
million
net
loss
in
the
latest
fiscal
year,
compared
with
around
$278
million
during
the
prior
year.

Microsoft
invested
in
Rubrik
in
2021
at
a
reported
valuation
of
$4
billion.
Venture
firm
Lightspeed,
where
CEO
Bipul
Sinha
used
to
be
a
partner,
will
have
over
25%
of
voting
power
following
the
IPO.
Sinha
will
have
8%
control.