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“We are on a mission to secure the world’s data.” - Rubrik S1 Filing

Key Figures

  • Annual Recurring Revenue: $784M as of Jan 31, 2024, +47% y/y

  • Customers: +6,100

    • Customers Over $100K in Subscription ARR: +1,700

    • Customers Over $1M in Subscription ARR: 99 (lol, couldn’t get 1 more???)

  • Subscription Net Dollar Retention Rate: 133%

  • Subscription Gross Margin: 82%, (-2%) y/y

  • Net Loss: ($327M) in FY24, an increase from ($278M) in FY23

  • Current Cash on Balance Sheet: $280M

5 Key Themes:

Rubrik was not born in the cloud. Rubrik merely adopted the cloud.

  • The Shift to Cloud Subscription is Nearly Complete: Rubrik wasn’t born in the cloud. They originally got their start selling hardware that companies could use to back up their data. Rubrik then had to migrate to the cloud, where it now gets most of its revenue from software that “detects, analyzes, and remediates data security risks and unauthorized user activities,” according to its IPO prospectus. And the shift is nearly complete. The company still has roughly $100M in maintenance contracts (renewals on perpetual license contracts) and “Other” revenue (professional services) on it’s P&L. These two categories roughly halved year on year, but still show up. And not to go all Inception on you, but within what they classify as “Subscription ARR”, $524M of the $784M (67%) is “Cloud”, with the remainder of the Subscription revenue on prem.

  • Show Me What dem Losses Do: Net Losses increased from $278M to $354M y/y. They did come a lot closer to green on the Free Cash Flow front, losing only $15M in 2023 and $25M in 2024. But, like, still…

❝

“In fiscal 2023 and fiscal 2024, we incurred net losses of $(277.7) million and $(354.2) million, respectively. In fiscal 2023 and fiscal 2024, operating cash flow was $19.3 million and $(4.5) million, respectively, and free cash flow was $(15.0) million and $(24.5) million, respectively.” - Rubrik S1 Filing

Steve smell losses

  • Got that Phat Pref: They’ve raised $1.2B to date. They had to go public.

  • Plus, They Kinda Need the Cash: A bit of an apples to oranges comparison due to their business models and the sectors they play in, but it gets the point across - Reddit had over $800M in cash on it’s balance sheet at IPO. Rubrik is close to a quarter billion. While they’re hovering around cash flow positive (sort of), this is a lower cash balance than many of the IPOs we saw in the COVID era, who’s coffers were flush with cheap VC money.

  • Riding the AI wave: Only mentioned the term “Artificial Intelligence” 10 times in their S1 filing! Didn’t have that on my bingo card.

Valuation, Investors, and Ownership

Valuation:

  • Last Valuation: $4B

  • Raised to Date: $1.2B

  • Estimated Valuation at IPO: $7B to $9B

  • Est. Raise: $500M to $700M

Notable Investors:

  • Microsoft led their most recent round in 2021 at a $4B valuation

  • Lightspeed Venture Partners (24%), Greylock Partners (12%) and Khosla Ventures are also shareholders

  • CEO Bipul Sinha holds 7.6%; his other two cofounders also hold around ~7% each

    • Bipul started the company after stepping down as partner at investor Lightspeed

  • Kevin Durant, also known by the moniker Easy Money Sniper, is an early angel investor

Durant to Bipul upon securing the bag at IPO

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