Ahead of IPO, Rubrik’s Revenue Growth Slows as It Targets Long-Term Customers

Microsoft-backed cloud startup Rubrik, which has been preparing for an initial public offering, may have the same problem that complicated the recent IPOs of Instacart and Arm: unusually slow revenue growth. Rubrik’s revenue grew about 8% year over year during the six months that ended in July, to nearly $290 million, a person familiar with the matter said. That was a slowdown from about 18% growth the previous year.

But one difference Rubrik is likely to emphasize to investors ahead of any IPO is a growing pile of subscription revenue that should help its overall revenue accelerate sharply next year and beyond. Rubrik’s annual recurring revenue, which measures customers’ full contract values, grew about 72% from a year earlier to more than $650 million at the end of July, the person said.