:max_bytes(150000):strip_icc()/GettyImages-2021694437-0281480187bc4547aaa7caedcd7aa59b.jpg "Data Security Firm Rubrik Stock Falls on End of Lock-Up Period")
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Key Takeaways
- The lock-up period from Rubrik’s IPO is set to expire, sending shares lower Tuesday.
- Selling came even with the data security firm posting soaring subscription sales and a less-than-expected loss.
- Rubrik said recent successful cyberattacks and IT issues have driven demand.
Rubrik (RBRK) shares lost ground Tuesday as the lock-up period following the data security firm’s initial public offering (IPO) is set to expire, offsetting solid fiscal 2025 second-quarter results.
The cybersecurity company went public in April, and the lock-up ends imminently. Shares of newly traded firms often drop as insiders and pre-IPO investors cash in. Yesterday, the stock closed at $32.06, a tick above the $32-a-share offering price.
The selloff came even as Rubrik benefited from demand driven by increased cyberattacks. The company—whose clients include PepsiCo, Home Depot, and Allstate—slashed its adjusted per-share loss to $0.40 from $1.33 last year. Revenue jumped 35% to $205 million. Both were better than estimates.
Subscription revenue popped 50% to $191.3 million, and subscription annual recurring revenue (ARR) was up 40% to $919.1 million.
CEO Says Firms Recognize ‘Need for a Robust Cyber Resilience Plan’
Chief Executive Officer (CEO) Bipul Sinha said the “long list of recent successful cyberattacks and IT outages is driving organizations to increasingly recognize the need for a robust cyber resilience plan to ensure business continuity in the face of cyber disruptions.”
Shares of Rubrik fell almost 3% to $31.22 in late-afternoon trading Tuesday.