Microsoft-backed knowledge safety agency Rubrik publicizes IPO plans

Information safety software program vendor Rubrik Inc. stated right this moment it has filed for an preliminary public providing, the newest in a rising variety of expertise companies to announce such plans this 12 months, following an prolonged lull that dates again to 2021.

The corporate launched 9 years in the past, initially promoting {hardware} that corporations may use to again up their most vital knowledge in a modernized manner, relative to conventional knowledge storage suppliers. It later pivoted to the cloud, and nowadays the majority of its income derives from knowledge safety software program that detects, analyzes and remediates safety dangers and unauthorized consumer exercise, it stated in a submitting. Its rivals embody Dell Applied sciences Inc., IBM Corp., Veeam Inc. and Cohesity Inc.

Rubrik stated in a submitting it plans to drift its shares on the New York Inventory Trade underneath the “RBRK” ticker image. For its fiscal 12 months ended January 2024 it recorded $627.9 million in income, up 5% from a 12 months earlier, however it’s not but worthwhile, as its web loss widened to $354.2 million from $277.7 million the 12 months prior.

Greater than three-quarters of its income was spent on gross sales and advertising and marketing within the final fiscal 12 months. The corporate didn’t disclose the dimensions of the providing, however when stories of an IPO first emerged final 12 months. it was reported to be looking for to elevate about $500 million to $750 million.

The announcement provides to the rising momentum round IPOs this 12 months, which has sparked again into life after virtually three years of little or no exercise. In March, the social media platform Reddit Inc. and database firm Astera Labs Inc. each launched IPOs, assembly their fundraising targets and seeing their shares rise on the primary day of buying and selling.

Their success has seemingly catalyzed the curiosity of different corporations. Final week, the digital advertising and marketing software program agency Ibotta Inc. and commodities buying and selling platform Marex Group Plc each introduced plans for imminent IPOs.

All informed, 48 corporations raised round $9.6 billion by means of IPOs on U.S.-based exchanges within the first quarter, in keeping with knowledge from Bloomberg, in contrast with simply $3.8 billion by 46 corporations in the identical interval one 12 months in the past.

Previous to this, the final two main tech IPOs within the U.S. had been Instacart and Klaviyo Inc., which each went public in September 2023, receiving a robust welcome from buyers on Wall Road.

The marketplace for IPOs cooled significantly following a record-breaking 12 months in 2021, due to a mixture of hovering inflation and rising rates of interest that pushed buyers out of the expertise business and different dangerous companies. The IPO lull additionally had the knock-on impact of much less funding in non-public companies.

Rubrik was co-founded by its Chief Government Officer Bipul Sinha (pictured), together with Arvind Jain, Soham Mazumdar and Arvind Nithrakashyap. Its main backers embody Lightspeed Enterprise Companions and Microsoft Corp., which additionally sells its cloud providers to Rubrik. In its prospectus, Rubrik revealed that it has dedicated to spending $220 million on Microsoft’s Azure public cloud over the subsequent ten years.

Lightspeed, which previously employed Sinha, led Rubrik’s first funding spherical in 2015 and is its single greatest shareholder with a 24% stake, the submitting revealed. Greylock Companions holds a 12% stake, adopted by Sinha, who owns 7.6% of the corporate, Jain with 7% and Nithrakashyap with 6.7%.

Like Reddit earlier than it, Rubrik will create a directed share program that provides IPO shares to sure companions, family and friends members. The corporate had 3,100 staff on its books as of January 2024, with greater than 6,100 shoppers on its books.

Goldman Sachs, Barclays, Citigroup and Wells Fargo will function lead underwriters of the sale.

Final 12 months, Sinha appeared on theCUBE, SiliconANGLE Media’s cellular livestreaming studio, the place he mentioned the corporate’s formidable plans to reinvent cybersecurity with its imaginative and prescient of an AI-driven supercloud strategy to securing knowledge: