Rubrik: From Startup to IPO with CJ Gustafson & Erik Torenberg

This episode features a comprehensive discussion of the tech company Rubrik, known for its innovations in data backup, recovery, and cybersecurity solutions. Guest CJ Gustafson provides a nuanced view of Rubrik's financial health, strategic direction, and its broader implications for the tech industry's IPO landscape.

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✨ Key Takeaways

• Rubrik started as a backup and recovery vendor and transitioned to a cloud-first subscription-based model.

• They expanded into the cybersecurity market and offer a range of data management and security solutions.

• Rubrik has a strong focus on sales and marketing, with a large sales force and a channel model.

• Their revenue streams include subscription revenue, maintenance revenue, and other revenue from perpetual licenses.

• Rubrik has achieved impressive growth with a high net dollar retention rate and doubling subscription ARR for customers over $100K in the last two years. Rubrik successfully transitioned from perpetual to subscription revenue, resulting in accelerated growth.

• They have entered a new TAM in the cybersecurity space and have performed well.

• Rubrik's product is sticky and hard to replace, with a high NPS score.

• They are currently losing money and need to improve sales efficiency to generate profits.

• Expansion into Asia and targeting industries with outsourcing needs could be the next growth opportunity.

• Valuation should be based on subscription revenue and a revenue multiple of 10-12x.

• The bull case for Rubrik is their presence in economically resilient categories, understanding of competitors, and macro-resistant product.

• The bear case is their current loss-making status and the need for continued innovation and sales efficiency improvement.

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🔗 Links:

Mostly Metrics: “Rubrik IPO: S-1 Breakdown”

Mostly Metrics: “Is Net Promoter Score the Ozempic of Metrics?”

CJ's podcast: Run the Numbers with CJ

⏲️ Timestamps:

(00:00) Intro

(00:41) Rubrik's Evolution

(02:20) The Strategic Shift: Cloud and Cybersecurity Expansion

(05:13) Dissecting Rubrik's Sales Strategy and Market Competition

(11:19) Exploring Rubrik's Revenue Model and Subscription Shift

(15:27) Rubrik's Impressive Growth Metrics and Future Prospects

(17:28) Sponsor: Brave | Turpentine

(19:14) The Role of R&D in Rubrik's Competitive Edge

(20:57) Decoding the Financials: Sales, Marketing, and Sustainability

(22:06) The IPO Strategy: Navigating Public Markets

(24:12) Evaluating the S-1

(27:25) The Bull and Bear Case for Rubrik

(30:31) Valuation Insights and Understanding the Numbers

(33:31) Expanding Horizons: Global Growth and Customer Insights

(34:58) NPS is the Ozempic of Metrics

(37:55) IPO

(39:48) Wrap

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