Rubrik IPO: Stock Price Jumps 20% in NYSE Debut

Rubrik’s stock price jumped over 20% on Thursday in its New York Stock Exchange (NYSE) debut.

The data security provider priced its initial public offering at $32 per share, and the stock opened at $38.60. It closed at $37. The stock is trading under the ticker symbol “RBRK.”

In selling 23.5 million shares, Rubrik raised $752 million in its NYSE debut, leaving it with a valuation of $5.6 billion, according to CNBC.

On April 1, Rubrik filed its Form S-1 with the U.S. Securities and Exchange Commission (SEC) to go public. Last summer, we reported a Rubrik IPO could come in 2024 if the IPO market improved by then.

However, the S-1 shows Rubrik incurred heavy losses in its fiscal 2023 and 2024. In fact, it has incurred net losses since its inception nine years ago.

“We have continued to invest in growing our business and advancing our solutions to capitalize on our market opportunity,” it said. “As a result, in fiscal 2023 and fiscal 2024, we incurred net losses of $277.7 million and $354.2 million, respectively.”

NYSE Debut the Start of a Journey for Rubrik

“We are grateful to our customers, partners, Rubrikans, investors and supporters for joining us on this journey to secure the world’s data and build an impactful company along the way," wrote Bipul Sinha, Rubrik’s co-founder, on X.

Related:Rubrik IPO: Net Losses 'Will Be a Concern,' Says Analyst

Adam Strange, principal analyst of data security at Omdia, noted that Rubrik has been active with acquisitions. Last August, it acquired data security posture management (DSPM) vendor Laminar.

Omdia's Adam Strange

“That would have probably contributed to their losses,” Strange said. “Since then, they have been quiet, without a briefing from them on the way ahead for their newly acquired DSPM capability. From my perspective, it makes a lot of sense to combine DSPM ... so they are now able to offer a logical and expanded DSPM proposition, which will in turn give them a good competitive offering and access to the overall data security opportunity.” (Informa is the parent company of both Channel Futures and Omdia.)

In data security, there are fewer IPOs and more acquisitions by larger players, Strange said.

“An IPO may go some way to address Rubrik’s losses in the short term, but whether it provides longer-term stability remains to be seen,” he said. “I think an IPO for them does make sense, however. I don’t think there are any drawbacks to going public. I do think they are still a smaller fish in a pond with some much larger players, so an IPO will invariably give them a bit more punch/substance in a competitive marketplace.”

Related:Rubrik's Latest Channel Program Creates New Paths to Data Management

As of Jan. 31, Rubrik had more than 6,100 customers, up from roughly 5,000 customers a year prior.