Rubrik (RBRK) saw its stock price decline on Tuesday as the lock-up period for its initial public offering (IPO) nears its end, overshadowing the company’s impressive fiscal 2024 second-quarter results.
The data security firm, which went public in April, is approaching the expiration of the lock-up period, a time when insiders and early investors are permitted to sell their shares. This often leads to a drop in stock prices. Rubrik’s shares closed at $32.06 yesterday, slightly above the $32 per share offering price.
Despite the recent sell-off, Rubrik posted solid financial results. The company’s adjusted per-share loss narrowed to $0.40 from $1.33 in the same quarter last year, while revenue surged 35% to $205 million, surpassing estimates. Subscription revenue grew by 50% to $191.3 million, and subscription annual recurring revenue (ARR) increased by 40% to $919.1 million.
Rubrik’s CEO, Bipul Sinha, attributed the strong performance to heightened demand driven by recent cyberattacks and IT outages. “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,” he said.
In late-afternoon trading on Tuesday, Rubrik’s shares fell nearly 3% to $31.22.
