Microsoft-Backed Rubrik’s IPO Filing Shows $354 Million Loss
(Bloomberg) -- Rubrik Inc., a cloud and data security startup backed by Microsoft Corp., filed for an initial public offering, disclosing growing revenue and losses.
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The offering is being led by Goldman Sachs Group Inc., Barclays Plc, Citigroup Inc. and Wells Fargo & Co., according to Monday’s filing with the US Securities and Exchange Commission, confirming a Bloomberg News report. The company plans 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 later filing. The company could seek to raise $500 million to $700 million in an IPO, Bloomberg News reported in September.
The filing adds to the roster of companies planning to go public after IPO successes last month by social media platform Reddit Inc. and semiconductor connectivity company Astera Labs Inc., which met or exceeded their IPO fundraising goals and then rose in their trading debuts. Digital marketing software firm Ibotta Inc. and commodities dealer Marex Group Plc are among the companies that have filed for IPOs since then.
Two-Year Best
Reddit and Astera helped push the total raised via IPOs on US exchanges to $9.6 billion during the first quarter, according to data compiled by Bloomberg. That was the best showing for a quarter since the first three months of 2022.
In a letter to investors included in the prospectus, Rubrik Chief Executive Officer and Chairman Bipul Sinha said no government or business is immune to cyberattacks.
“While our company has grown in organizational size and experience, our mindset, sense of urgency, and risk posture remain as if we were still in the same tiny room as on day one,” Sinha said.
Rubrik was founded in 2013 and released its first product in 2016. It said it now has more than 6,100 customers, including Goldman Sachs, Barclays and Citigroup. Its clients include governments and universities, as well as an array of companies such as Home Depot Inc., PepsiCo Inc., Illumina Inc., Fiserv Inc. and the Denver Broncos.
The company’s subscription annual recurring revenue grew by 47% as of Jan. 31, compared with a year earlier, according to the filing. Palo Alto, California-based Rubrik had a net loss of $354 million on revenue of $628 million for the year ended Jan. 31, compared with a loss of $278 million on revenue of about $600 million a year earlier, according to the filing.
Microsoft’s Investment
Microsoft made an equity investment in Rubrik in 2021 in a financing round that valued the startup at $4 billion, Bloomberg News reported. Rubrik, whose backers also include 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 alliance with Microsoft, Rubrik has committed to spend $220 million over the course of up to 10 years for the use of Azure, Microsoft’s cloud computing platform. Rubrik will use Azure for its data security solutions and preferentially offer public cloud functionality for Azure to its customers, according to Monday’s filing.
Currently, Lightspeed affiliates have about 24% of the company’s Class B shares, while Greylock controls about 12%, according to the filing.
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. Those shares will have 20 votes each, compared to one each for the Class A shares to be sold in the IPO.
--With assistance from Michael Hytha.
(Updates with customers in eighth paragraph.)
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