Rubrik’s (RBRK) roadshow pitch ahead of its IPO on Thursday: In the fast-paced world of AI, we can protect data – and ultimately make a lot of money from it.
The said field worked.
Shares of Rubrik rose 17% to $37 at the end of a tough day on Wall Street, a blistering response to a new AI ecosystem play, similar to the demand for Reddit’s (RDDT) newly issued shares just a few weeks earlier .
“We had been preparing for this moment for several years and the market was receptive,” Bipul Sinha, co-founder, chairman and CEO of Rubrik, told Yahoo Finance (video above).
The cybersecurity company’s shares were priced at $32 late Wednesday, above the top of their expected range. The stock opened for trading at $38.60.
The raised IPO raised $752 million for Rubrik’s expansion plans, initially valuing the company at $5.6 billion.
It was just this January when Rubrik — in which Microsoft (MSFT) has invested since 2021 — raised a Series E round that valued the company at $3.3 billion. That round was led by Bain, Lightspeed Venture Partners, Greylock and Khosla Ventures. A previous increase in 2017 valued the company at about $1.8 billion.
“The company is one to watch,” an early Rubrik investor told Yahoo Finance.
A key part of Rubrik’s selling point is its highly regarded tech exec, Sinha.
The former engineer has spent a lot of time in the venture capital industry. As a partner at Lightspeed Venture Partners, Sinha put dollars behind names like Nutanix (NTNX) and Pulse News. (Lightspeed is now a major shareholder in Rubrik, with approximately 24.9% of shares outstanding).
He also held technical positions at Oracle (ORCL) and IBM (IBM).
Sinha founded Rubrik in 2014 and worked in coffee shops at the offices of Google (GOOG, GOOGL) and YouTube in an effort to hire top developer talent.
He does not hide his modest upbringing, which has contributed to the growth of his company. “Maximal thinking is how I lifted myself out of poverty,” Sinha wrote in a letter in the company’s IPO prospectus.
“He is the American dream come true.” Lightspeed Venture Partner co-founder and partner Ravi Mhatre told Yahoo Finance.
Sinha said he is still as hungry as ever despite the renewed attention surrounding Rubrik and his future.
Although the cybersecurity market is still in growth mode, Rubrik must prove his worth to Wall Street. The company reported a loss of $354 million for the twelve months ended January 31, 2024, despite a 40% increase in subscription revenue to $537.9 million. It posted a loss of $278 million for the 12 months ended January 31, 2023.
The company noted in its prospectus that it has incurred losses in every period since its inception.
“Profits are of utmost importance,” Sinha acknowledged, although he declined to give a precise timeline on when those profits would appear on the balance sheet.
Brian Sozzi is editor-in-chief of Yahoo Finance. He is also the host of the ‘Starting bid‘podcast. Follow Sozzi on Twitter/X @BrianSozzi and further LinkedIn. Tips about deals, mergers, activist situations or something else? Email brian.sozzi@yahoofinance.com. Are you a CEO and want to join Yahoo Finance Live? Email Brian Sozzi.
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