Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date! Rubrik IPO This week Rubrik launched their IPO with an initial pricing range of $28 - $31 / share. This range represents roughly a $6B valuation at the midpoint ($29.50 / share), with a ~6.5x NTM revenue multiple. Their GAAP revenue grew 5% in 2023, and 29% in Q4 ‘23 YoY. There is some noise in the revenue growth figures as the company transitions from selling perpetual licenses to to recurring subscriptions, and as they convert maintenance customers to subscription customers (they do this as maintenance contracts come up for renewal, so the transition happens gradually).
Glad to see the steady trickle of tech IPOs. I hope it becomes a larger consistent flow because it is, imo, healthy for capital markets. As a retail investor, I would rather that startups go public than stay private.
One observation about your Top 10 EV / NTM Revenue Multiples table. Looking at the top 4 companies - NET, CRWD, PLTR, DDOG. I wonder if, after the recent rerating in tech companies, we could now consider these companies to be the cream of the crop. Meaning, investors are willing to pay up a little higher for these companies versus others lower in the table. Just a thesis that I am considering...Cheers!
Given the >40% ARR growth, why is Rubrik's multiple of 6.5x NTM revenue not follow the high growth companies of >8x?
Glad to see the steady trickle of tech IPOs. I hope it becomes a larger consistent flow because it is, imo, healthy for capital markets. As a retail investor, I would rather that startups go public than stay private.
One observation about your Top 10 EV / NTM Revenue Multiples table. Looking at the top 4 companies - NET, CRWD, PLTR, DDOG. I wonder if, after the recent rerating in tech companies, we could now consider these companies to be the cream of the crop. Meaning, investors are willing to pay up a little higher for these companies versus others lower in the table. Just a thesis that I am considering...Cheers!