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As a private - market company , Rubrik last raised a lettered round in 2019 when itclosed $ 261 millionat a $ 3.3 billion post - money evaluation , according to Crunchbase data . The fellowship could have luck pricing its IPO share significantly gamy than its last basal round . Buyers on the secondary market have call for share valuing the party at $ 6.6 billion in late month . Secondary data political program Caplight approximate the caller ’s evaluation hovers around $ 6.3 billion .
Rubrik trade its swarm - base information protection platform to enterprises . As of January , the company had over 1,700 customers with an annual contract value of $ 100,000 and nearly 100 customers who paid Rubrik over $ 1 million a year , concord to its IPO filing .
Inside Rubrik’s growth
Rubrik ab initio show as a moderately growing software business with net losses that stretched to $ 354 million in its most recent fiscal twelvemonth .
From its fiscal 2023 to its financial 2024 , which concluded at the end of January this year , the companionship ’s revenue grew from $ 599.8 million to $ 627.9 million , or just under 5 % . However , subscription taxation grew 40 % over the same period , arise from $ 385.3 million to $ 537.9 million .
The growth in its subscription revenue , and not its legacy revenue , is the engine that could propel Rubrik to a successful IPO . The society began life as a software program ship’s company that sold its product on a perpetual licence basis . However , after several years , it began to change over toward a subscription model in its financial 2019 . It thrive its subscription ( SaaS ) offer over time and order investors in its IPO filing that it anticipates that its non - recurring tax revenue will “ continue to decrease , ” as it does n’t by and large offer ceaseless licenses today .
Rubrik ’s transformation to recur tax revenue is draw near its completion , with the company reporting that in its most recent fourth — the full point ending January 31 , 2024 — subscription - related top line make up 91 % of its entire revenue . That was up from 73 % in the year - ago one-fourth .
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The business organization model transition from license to SaaS can be costly and has librate on Malcolm stock cost of other large security system company like Splunk , said Brendan Burke , emerging technology psychoanalyst at PitchBook . “ Yet Rubrik shares have traded at a 50 % insurance premium to the last VC round in lower-ranking markets , propose the company will be able to justify a sufficiently high evaluation to fund this teddy , ” he aver .
The teddy to subscription tax revenue has helped Rubrik further its gross margins , which rose from 70 % in its fiscal 2023 to 77 % in its of late completed fiscal 2024 .
However , a produce recurring - revenue software business and improving gross margin have not solved Rubrik ’s fuddled losses . The company ’s nett losses grew from 46 % of revenue in its financial 2023 to 56 % in its fiscal 2024 , totaling some $ 354.2 million in the 12 calendar month end January 31 , 2024 .
However , despite Rubrik ’s steep unprofitability , its cash tan has been comparatively pocket-sized . The difference between its net losses and operating cash deficits is not resolved through the excision of expansive share - based recompense ; those are undivided - finger’s breadth million annual expense at the company . rather , upfront compendium of rateable revenue helped Rubrik inflate its deferred receipts by hundreds of one thousand thousand in recent old age and confine its net operate cash outflow over the same time period .
A Silicon Valley story
Rubrik ’s possible IPO could turn out a coup d’etat for Lightspeed Venture Partners , a well - known Silicon Valley venture upper-case letter shop . Bipul Sinha , Rubrik ’s co - founder and chief executive officer for the last decade , is a former mate at Lightspeed . The venture cap firm led Rubrik ’s Series A , and , per Crunchbase , took part in all its successive funding rung . induct in a former partner is not unheard of in speculation lap , with some house even building out founder or entrepreneur - in - mansion house roles internally . But to see Sinha ’s society come to market place with 23.9 % possession in the hands of his former employer emphasise how personal web can affect who raises Das Kapital in startup land .
Greylock is the other speculation firm with the most on the line when it comes to Rubrik ’s planned IPO , with its investor Asheem Chandna on the board and possession of around half of Lightspeed ’s stake , or 12.2 % of Rubrik ’s voting breed , before Modern shares are sold in the public offering . Greylock led Rubrik ’s Series B.
Other investor that led lettered round in Rubrik did not encounter the 5 % threshold required for compulsory inclusion body in the company ’s S-1 filing , but Enrique Salem from Bain Capital Ventures , which contribute the company ’s Series E , is also present on its board . Other board penis include Yvonne Wassenaar , the former chief executive officer of Puppet ; Mark McLaughlin , who sits on Snowflake ’s board ; and John Thompson , another Lightspeed denizen and former Microsoft control panel member . NBA musician and investor Kevin Durant waspreviously announced as a panel consultant at the company , though he is not mentioned in its IPO filing .
The founders are the variety of Silicon Valley A - lean that the VC community loves , demonstrating the often incestuous kinship that these technical school companionship can have with each other through their personal internet . The related third - company disclosures direct out that Sinha co - plant another startup called Confluera , where he still sits on the circuit board . In its financial 2022 , Rubrik spent $ 124,640 with Confluera . conscientious objector - father Arvind Jain , who remains a major shareowner but has gone to found a new darling AI inauguration , Glean , is also really well known from his day as an early Google employee . Rubrik reports in its S-1 filing that it pass $ 356,000 with Glean since April 2021 .
While Rubrik notes that its purchases of engineering production and service from Confluera and Glean were “ negotiated in the average track of business organisation , ” they underscore the connections that exist between many Silicon Valley operators . Those same connection can avail beginner repeat prior achiever by buying from and selling to friends and former colleague . The Rubrik S-1 , while not indicating anything untoward , is a reminder that net effects in startup and speculation circles are often predicated on relationships and their geographic density in spot like Northern California .
What’s on the line
There are more than 1,000 startups in the world today with a valuation of $ 1 billion or more . Those that are still in fighting shape want to find a elbow room to exit and rejoin cap to their backers . With the IPO mart long behind the take pace to clear those decks , many private - market companionship are waiting for a clear start gun to go after their own public offerings . If Rubrik can price and trade well in its own debut , it could facilitate other , enterprise - focused software companies that are still unprofitable to also take a shot at conk public . That would be welcome news for both founding father and speculation capitalists likewise .
