Rubrik shares fall as Microsoft-backed firm nears IPO lockup expiry

Rubrik

10/09/2024 16:27

Sept 10 (Reuters) - Shares of Rubrik  RBRK.N  fell more
than 6% on Tuesday, as the markets braced for the expiry of a
lockup period tied to its initial public offering, clouding the
Microsoft-backed cybersecurity company's upbeat second-quarter
revenue.
    The lockup period expires on Wednesday and typically that
would allow company insiders and pre-IPO investors to sell their
shares, which often puts pressure on the stock price.
    Rubrik's results, the second after it went public in April,
indicate that businesses have been spending heavily to shield
themselves from growing cyber attacks that have hit companies,
including UnitedHealth Group  UNH.N , Microsoft  MSFT.O  and
U.S. oilfield services firm Halliburton  HAL.N .
    "While the pending IPO share-lockup expiry on Sept. 11 could
cause some downward share price pressure, this report and the
current robust cybersecurity spending environment confirm our
positive Rubrik thesis," brokerage CIBC wrote in a note.
    If losses hold, Rubrik will be on track to shed more than
$350 million. The company had a market valuation of $5.77
billion as of Monday's close.
    California-based Rubrik reported second-quarter revenue of
about $205 million, compared with analysts' average estimate of
$196.2 million, according to LSEG data.
    Its adjusted loss per share for the quarter was 40 cents,
compared with the estimates of a loss of 49 cents per share.
    "We have helped hundreds of customers quickly come back
online after the recent global IT disruption," Chief Executive
Bipul Sinha said on a post-earnings call on Monday.

 (Reporting by Jaspreet Singh in Bengaluru; Editing by Shilpi
Majumdar and Janane Venkatraman)
 ((Jaspreet.Singh@thomsonreuters.com; https://twitter.com/i_jass;))