Rubrik stock debuted on the New York Stock Exchange on Thursday at $38 per share. The cybersecurity company raised $752 million Wednesday night at a price of $32 per share, slightly above its original target range of $29 to $31. The share price gives Rubrik a fully diluted valuation of $6.6 billion, an 88% increase from its previous underlying valuation of $3.5 billion in 2019.
Rubrik sells cloud-based security software to enterprise customers and has 1,700 customers with commitments of $100,000 or more and 100 customers who pay the company more than $1 million annually. The Silicon Valley startup was founded in 2014 and has raised more than $550 million in venture capital, according to Crunchbase data.
The VCs most likely to see Rubrik's stock price continue to rise are Lightspeed and Greylock. Lightspeed has backed the company in five rounds, including leading the company's Series A round in 2015. Lightspeed and its affiliates owned 23.9% of Rubrik's stock prior to the IPO, according to the company's S-1 filing. Their confidence in the company may stem from the fact that Rubrik co-founder and CEO Bipul Sinha was a partner at Lightspeed from 2010 to 2014. Mr. Sinha owns 7.6% of the stock.
Greylock owns 12.2% of Rubrik's shares. The venture firm led the startup's $41 million Series B round in 2016 and also participated in its Series C and Series D rounds. Asheem Chandna, a partner at Greylock, has been on the company's board since 2015.
In addition to Mr. Sinha, Rubrik's two other co-founders hold notable stakes. Co-founder Arvind Jain, currently CEO of AI work assistant startup Glean, holds a 7% stake. Arvind Nithrakashyap, co-founder and current CTO of Rubrik, holds 6.7%.
Other well-known VCs also backed the company. Khosla Ventures led Rubrik's Series C round in 2016. IVP He led the company's Series D round in 2017. Bain Capital Ventures led the company's Series E round in 2019. It's unclear what percentage of the stock these companies still own, but since none of these investors are named on the company's S-1, it's less than 5%. Thirty-Five Ventures, led by NBA All-Star Kevin Durant, was also an investor.
Rubrik's IPO results have come under more scrutiny than some other recent listings because Rubrik's debut is close to the 2021 IPO and unlike other 2024 IPOs. Ibotta debuted as a profitable company. Astera Labs and Reddit both recently achieved GAAP net income. But Rubrik is an unprofitable company, with losses continuing to widen rather than shrink.
The company reported that its revenue increased by just under 5% from fiscal year 2023 to fiscal year 2024, from $599.8 million to $627.9 million. At the same time, the company's losses continued to widen, with net loss increasing from 46% in FY2023 to 56% in FY2024.
However, there are some bright spots in the company's indicators. That's subscription revenue. In the company's latest fiscal quarter, subscriptions accounted for 91% of its revenue, up from 73% in the year-ago period. Subscription revenue tends to stagnate, and its growth could explain why some investors are confident in Rubrik's future prospects despite current losses and lack of profitability There is.
Investors appear eager for the IPO market to reopen, with Rubrik becoming the fourth venture-backed company to go public in recent months. All three companies that preceded Rubrik (Ibotta, Reddit, and Astera Labs) soared on their first day of trading, and have all calmed down since then, with some in a better position than others. But none of this bodes well for disaster or negativity for his other potential IPOs this year.
Four strong IPO debuts could prompt more companies to come off the sidelines, but current guidance suggests rate cuts may not happen as early as 2024 as most expected could put a damper on the recent IPO market momentum.