Key takeaways
- Rubrik, a cybersecurity company backed by Microsoft, filed for an initial public offering (IPO) on Monday.
- The company is the latest to file after a string of recent tech IPOs, including Reddit and Astera Labs.
- The cybersecurity company could aim to raise up to $700 million.
- Rubrik, which provides secure data across applications for business customers, could benefit from the artificial intelligence boom.
- The company’s IPO filing showed Rubrik’s losses widened in 2024 compared to 2023, while revenue rose as the company said it invested to grow its business.
Rubrik, a cybersecurity company backed by Microsoft (MSFT), filed an application initial public offering (IPO) and is expected to trade under the ticker symbol “RBRK.” The company is the latest to go public after a wave of recent IPOs in the technology sectorincluding Reddit (RDDT) and Astera Labs (ALAB).
The company has not announced how many shares will be offered or their price. Bloomberg reported that Rubrik could aim to raise between $500 million and $700 million.
Opportunity amid the AI boom
Rubrik provides secure data to enterprise customers in the cloud and Software as a Service (SaaS) apps powered by machine learning (ML)and claims that its SaaS architecture allows it to “apply artificial intelligence and machine learning directly to enterprise data to understand emerging data threats and ensure cyber recovery.”
The company could become the last to benefit from the recent surge in investor interest In artificial intelligence (AI)Rubrik emphasizing that in the age of AI, cybersecurity risks could be greater for businesses and increase demand for its services.
The company’s clients include AI leaders such as Microsoft, Oracle (ORCL), and that of Amazon (AMZN) AWSshowed the file.
First look at trade indicators shows growing losses
THE S-1 filing offered potential investors a glimpse into Rubrik’s finances and showed mounting losses in recent years while its total revenue rose as the company said it invested to grow its business.
The company reported a net loss of $354.2 million for fiscal 2024, up from a loss of $277.7 million in fiscal 2023. Rubrik said the losses were the result of the company’s “investments” in the growth of (its) activities and progress. (its) solutions to capitalize on (its) market opportunities.”
Rubrik reported total revenue of $627.9 million in fiscal 2024, up from $599.8 million in 2023. The company said it has “experienced rapid growth” as companies seek solutions “to cyberattacks, malicious insiders and operational disruptions”.
The company said its annual subscription recurring revenue subscriptions increased 47% to $784 million in 2024, up from $532.9 million in 2023, according to the Securities and Exchange Commission (SEC) deposit.
Ongoing Microsoft partnership
Rubrik revealed its partnership with Microsoft in the SEC filing, saying it had formed “deeper strategic relationships” with the tech giant that “extend from conducting market for co-engineering projects.
Through the Rubrik and Microsoft partnership, the companies offer integrated Zero Trust data security products based on Azure. Microsoft named Rubrik its “Partner of the Year” for 2023.
Rubrik announced “a strategic agreement” with Microsoft which included an equity investment for an undisclosed amount in 2021. The company’s partnership with Microsoft, a leader in the field of AI with its relationship with ChatGPT the manufacturer OpenAI, could strengthen Rubrik’s position in the AI race.
