Another US stock IPO! Microsoft-backed cybersecurity stock Rubrik is about to "bleed" onto the market

On Monday local time, cloud computing and data security startup Rubrik, supported by Microsoft, submitted its initial public offering (IPO) application to the U.S. Securities and Exchange Commission.

The prospectus shows that Goldman Sachs, Barclays, Citi, and Wells Fargo will serve as the lead underwriters for this IPO. Rubrik plans to list on the New York Stock Exchange under the ticker symbol "RBRK".

The size and price of the planned stock issuance will be disclosed in later filings. Media reports in September indicated that Rubrik may seek to raise $500 million to $700 million through the IPO.

Founded in 2013, Rubrik launched its first product in 2016. The company claims to have over 6,100 customers, including Goldman Sachs, Barclays, and Citi Group. Its clients range from governments, universities, to enterprises such as Home Depot, PepsiCo, Illumina, Fiserv, and the Denver Broncos. Competitors include Dell, IBM, Veeam, and Cohesity.

According to the prospectus, most of Rubrik's current revenue comes from software that "detects, analyzes, and remediates data security risks and unauthorized user activities".

However, as of the last fiscal year, Rubrik has not yet achieved profitability. The filings show that as of January 31, the previous fiscal year's revenue increased by approximately 5% to $627.9 million, but the net loss widened from $277.7 million in the previous year to $354.2 million. Over three-quarters of Rubrik's revenue is used to cover sales and marketing expenses.

In a letter to investors in the prospectus, Rubrik's CEO and Chairman Bipul Sinha stated that no government or enterprise is immune to cyber attacks.

"While our company has grown in organizational scale and experience, our mindset, sense of urgency, and risk awareness remain the same as when we started in the same small office."

This filing adds to the list of planned U.S. stock market debutants, following the successful IPOs of social media platform Reddit and semiconductor interconnect company Astera Labs last month, both of which met or exceeded their fundraising targets and saw their stock prices rise on the first day of trading. Since then, companies like digital marketing software firm Ibotta and commodity trader Marex Group have also filed for IPOs.

According to data compiled by Bloomberg, Reddit and Astera drove the total funds raised through IPOs on U.S. exchanges in the first quarter to $9.6 billion, marking the best quarterly performance since the same period in 2022