Rubrik Aiming For Spring IPO: Report

The data security firm is hoping to go public as soon as April, so long as a federal fraud investigation of a former employee does not pose a complication, according to a report.

Rubrik is hoping a federal fraud investigation of a former employee won’t complicate plans by the data security firm to complete its initial public offering as soon as April, according to a report.

The Reuters report indicated that a U.S. Department of Justice probe is focused on a former sales employee at Rubrik, who is being investigated in connection with the possible diversion of U.S. government contract funds into the employee’s own operating entity.

[Related: 7 Cybersecurity CEOs That Are Eyeing An IPO]

Citing a source, Reuters reported that it was not clear how much funding had allegedly been diverted, but said that some portion of 110 contracts with the U.S. government, which were worth $46 million in total, had been impacted.

CRN has reached out to Rubrik for comment.

As of last September, Rubrik had reportedly been seeking to complete its IPO by the end of 2023, but the target timeframe has now been moved to the spring as long as the DOJ investigation finishes by the end of March, according to Reuters. The company’s filing of intentions to go public has been registered with the SEC, the report said.

Rubrik is potentially seeking to become the first cybersecurity industry vendor to complete an IPO in more than two years. Other security vendors eyeing a 2024 IPO include Snyk and Cato Networks, according to a recent report from The Information.

ARR Growth

Rubrik’s annual recurring revenue has now surpassed $600 million, according to the Reuters report. That’s up from $500 million as of about a year ago, when Rubrik CEO Bipul Sinha told CRN that “we are watching the market and when the time is right, we’ll be a public company.”

“We definitely have the scale and momentum [to complete an IPO],” Sinha said at the time.

The company’s valuation in connection with its August 2021 funding round from Microsoft was not disclosed, but Bloomberg had reported the company valuation at $4 billion at the time. Other investors include Bain Capital Ventures, Lightspeed Venture Partners, Greylock Partners, Khosla Ventures and IVP.

Sinha, who co-founded Rubrik in 2014, has contended that Rubrik stands alone in offering data security built on zero trust principles.