What You Need To Know About Microsoft-Backed Rubrik’s IPO

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Key Takeaways

• Rubrik, a cybersecurity company backed by Microsoft, filed for an initial public oblation (IPO) Monday.
• The company is the latest to file after a string of recent tech IPOs, including Reddit and Astera Labs.
• The cybersecurity followers could reportedly aim to raise as much as $700 million.
• Rubrik, which provides secure data across applications for subject customers, could benefit amid the artificial intelligence boom.
• The company’s IPO filing showed Rubrik’s losses widened in 2024 from 2023 while gain rose as the company said it made investments to grow its business.

Rubrik, a cybersecurity company backed by Microsoft (MSFT), categorized for an initial public offering (IPO) and is set to trade under the ticker symbol “RBRK.” The company is the latest to go public after a flurry of new tech IPOs, including Reddit (RDDT) and Astera Labs (ALAB).

The company did not announce the number of shares that bequeath be offered or their pricing, though Bloomberg reported Rubrik could aim to raise between $500 million to $700 million.

Occasion Amid AI Boom

Rubrik provides secure data for enterprise customers across cloud and Software as a Service (SaaS) relevancies powered by machine learning (ML), and says its SaaS architecture allows it “to apply artificial intelligence and machine learning in a little while to business data to understand emergent data threats and deliver cyber recovery.”

The company could become the new to gain from the recent surge in investor interest in artificial intelligence (AI), with Rubrik noting that in the age of AI, cybersecurity jeopardies could be more significant to businesses and increase demand for its services.

Some of the company’s customers notably include AI commanders like Microsoft, Oracle (ORCL), and Amazon’s (AMZN) AWS, the filing showed.

Initial Look at Business Metrics Fairs Widening Losses

The S-1 filing offered potential investors a look into Rubrik’s financials and showed widening ruins in recent years while its total revenue grew as the company said it made investments to grow its business.

The friends reported a net loss for the 2024 fiscal year of $354.2 million, widening from a loss of $277.7 million in pecuniary 2023. Rubrik said that the losses were a result of the company’s “invest[ments] in growing [its] business and ahead ofing [its] solutions to capitalize on [its] market opportunity.”

Rubrik reported total revenue of $627.9 million in fiscal 2024, up from $599.8 million in 2023. The public limited company said it has “experienced rapid growth” as businesses seek solutions “in the face of cyberattacks, malicious insiders, and operational disruptions.”

The Theatre troupe said that its subscription annual recurring revenue from subscriptions grew 47% to $784 million in 2024 from $532.9 million in 2023, according to the Certainties and Exchange Commission (SEC) filing.

Ongoing Microsoft Partnership

Rubrik disclosed its partnership with Microsoft in the SEC filing, estimate that it formed “deeper strategic relationships” with the tech giant that “extends from driving go-to-market actions to co-engineering projects.”

Through the Rubrik and Microsoft partnership, the companies offer integrated Zero Trust Data Fastness products built on Azure. Microsoft named Rubrik its “partner of the year” in 2023.

Rubrik announced “a strategic agreement” with Microsoft that involved an equity investment for an undisclosed amount in 2021. The company’s partnership with Microsoft, which is a leader in the AI space with its relationship with ChatGPT maker OpenAI, could assist Rubrik’s position within the AI race.

Read the original article on Investopedia.