Sept 10 (Askume) – Rubrik (RBRK.N) shares fell more than 6% on Tuesday as the market braced for the expiry of a lockup period for its initial public offering, which could weigh on the Microsoft-backed cybersecurity company’s revenue in the second half.
The lock-up period, which ends on Wednesday, typically gives company insiders and pre-IPO investors a chance to sell shares, which typically puts pressure on share prices.
Rubrik’s results, the second reported in April, show companies are investing heavily to protect themselves from rising cyberattacks that have hit companies such as UnitedHealth Group Inc (UNH.N) , Microsoft Corp (MSFT.O) .
“While the pending IPO stock lockup expiration on September 11 may put some pressure on the stock, this report and the current strong cybersecurity spending environment reaffirm our positive outlook,” brokerage CIBC wrote in a note.
If the losses continue, Rubrik will lose more than $350 million. As of Monday’s close, the company’s market valuation was $5.77 billion.
California-based Rubrik reported second-quarter revenue of nearly $205 million, compared with analysts’ average estimate of $196.2 million, according to LSEG data.
Adjusted loss per share for the quarter was 40 cents, compared with an estimated loss of 49 cents per share.
“We’ve helped hundreds of customers quickly get back online following the recent global IT outage,” Chief Executive Bipul Sinha said in a conference call after reporting financial results on Monday.
