Data security company Rubrik has filed for a New York Stock Exchange listing. The potential IPO would see the company list its shares under the ticker symbol "RBRK." Rubrik has received backing from tech giant Microsoft (MSFT), which also holds a small ownership stake in the company as it looks to expand its presence in the data security sector.

Yahoo Finance Tech Editor Dan Howley breaks down the details, providing insight into the company's financial performance.

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Editor's note: This article was written by Angel Smith

Video Transcript

- Another tech company looking to make its public debut, Rubrik has filed to go public on the New York Stock Exchange under the ticker RBRK as the IPO market. It looks to regain momentum. Yahoo Finance's Dan Howley joins us now with more. Rubrik, and I understand there's a Microsoft partnership or angle involved.

DAN HOWLEY: Yeah, they're a backer of Rubrik. Basically, this is a company that is about data security. There's some cybersecurity elements. But they really kind of seem to peg themselves towards data security. That means keeping the data safe where it's moving or if it's at rest.

And they say a few things in their S-1 about how generative AI growth needs to be a part of this conversation about data security and how they're using AI directly into their formula when it comes to overall data security. But over the past year over year, they've had subscription growth numbers of let me just pull this up here, 47% year over year growth, that subscription annual recurring revenue. Last year, last quarter rather, Q4 2024, they booked $784 million in recurring revenue. But their losses have widened. In the last year, they saw losses of 277.7 million. They saw net losses of 354.2 million in last year.

So obviously, they're still growing, expanding. They say a lot of their money is going towards advertising right now. A lot of that has to go into making sure that people know what the company is and why they're essential, especially when it comes to data security. A lot of people think, cybersecurity you think, well, can't just be one-stop shop. There's plenty of companies out there that are doing things along these lines as well.

- What type of ownership are we talking about that Microsoft has here?

DAN HOWLEY: It's going to be regularly relatively small. It's not going to be massive. But I think the fact that Microsoft has a play in this means that it just kind of goes into where Microsoft is as far as data security overall and cybersecurity overall. They're really pushing into that space heavily with their own products, by the way.

- Yeah.

DAN HOWLEY: So they have that. But then just ensuring that they kind of have all their hands in different pots going on or pies?

- Lots of irons in the fire.

DAN HOWLEY: Yeah, there it is. That's a mixed metaphor there. But yeah, I mean the idea-- I think I'm just thinking about pie.

- Aren't we all?

DAN HOWLEY: Always. I think the idea that they're trying to get into security more is very important for Microsoft as they're regularly criticized as being a weak point in the chain of cyber security. So pushing further in with deals like this is very important for them, I think.

- All right, we're going to have to leave it there. Thank you for that, Dan Howley.