Rubrik's 2024 IPO: What Investors Need To Know

With customers like LVMH-owned Sephora, The Home Depot, PepsiCo, and Allstate, Rubrik is making waves in the tech and financial worlds with its anticipated move towards a public offering in 2024. Founded in 2014 by a team of ex-venture capitalists and engineers, the company has swiftly grown into a powerhouse in the data security and management space, boasting over 5,500 customers, 3,000 employees, and an impressive estimated ARR of $900 million in 2023. Let’s take a closer look at the company in anticipation of its rumored 2024 IPO.

• Rubrik's 2024 IPO: Leading cybersecurity company Rubrik, known for data security solutions beyond traditional backups, is planning for a 2024 IPO.

• How Rubrik makes money: The company makes money through SaaS offerings, software subscriptions, and professional consulting, with a focus on enterprise, cloud and SaaS environments.

• Zero Trust principles: Emphasizing Zero Trust principles and AI development positions Rubrik against both legacy and new competitors in cybersecurity.

Rubrik is essentially a cybersecurity company that goes beyond data backups to offer comprehensive data security solutions. The company implements Zero Trust principles to protect data across enterprise, cloud, and SaaS environments. Rubrik’s services include enterprise and cloud data protection, threat analytics, and cyber recovery, aiming to make organizations more resilient against cyberattacks.

The company makes money through a mix of software subscriptions, services, and professional consulting. A significant portion of its revenue comes from subscription-based sales of its data management and security products, with a strong focus on SaaS offerings. Rubrik’s SaaS products, including among other things a Microsoft 365 offering, also represents one of the fastest-growing segments of the business. Additionally, the company generates revenue from customer and technical support services related to the data protection software and SaaS solutions.

Cyberattacks as a whole are increasing in frequency and sophistication, and many legacy backup tools are not designed to be able to prevent them. According to Rubrik, the cybercrime market will be worth around $10 billion by 2025, making it the third-largest economy in the world. Likely a beneficial tailwind for future growth.

In total, Rubrik has raised a total funding of $553 million in seven different rounds, the largest of which being the latest one announced in early January 2024, amounting to $261 million at a $3.3 billion valuation. The round was led by Bain Capital Ventures, and further included previous investors such as Lightspeed Venture Partners, Greylock Partners, Khosla Ventures, and Institutional Venture Partners (IVP).

As Rubrik plans its IPO, possibly in the first half of 2024, it’s working with top financial institutions like Goldman Sachs, Barclays, and Citigroup as underwriters. The IPO, initially speculated for 2023, was likely delayed due to market conditions but is now on track for 2024. Rubrik’s approach, including its focus on Zero Trust principles and the development of AI-driven products, positions it as a competitive force against both legacy vendors and newer market entrants.

Rubrik’s potential IPO is not just a significant milestone for the company but also showcases the evolving landscape of cybersecurity and data management solutions. As the tech industry continues to face challenges around data breaches and cyber threats, Rubrik’s solutions are more relevant than ever, offering comprehensive protection and innovative technology to businesses worldwide.

For those interested in investing in Rubrik, the IPO offers a unique opportunity to participate in the growth of a company at the forefront of cybersecurity innovation. While the exact timing and details of the IPO are yet to be finalized, the anticipation builds for what could be one of the most significant public offerings in the tech sector for 2024.