(Reuters) – Shares of Rubrik 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, Microsoft and U.S. oilfield services firm Halliburton.
“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)
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