Long Rubrik!
Rubrik Investment Case!
Long gone are the days of dusty server rooms in office basements. Nowadays, everything goes through the cloud. And while this has created a world in which it is significantly easier to build and scale a digital business, it has also created immense opportunities for bad actors to steal valuable data.
As a result, the global cybersecurity industry has become a $200B+ market!
However, despite governments and businesses spending an ever-growing amount of money on cybersecurity, they always seem to be one step behind bad actors. The prevalence, sophistication, and financial losses associated with cybersecurity crimes are at an all-time high and are expected to continue increasing.
Increasingly, it is a question of when, not if, an organization will have to deal with a cybersecurity incident. This has driven a demand for a new kind of cybersecurity service that focuses on resilience and recovery.
And that is how we get to the business I am covering today.
Rubrik is a SaaS-based cloud cybersecurity company that focuses on recovering and restoring data, enabling affected businesses to quickly and efficiently restart operations.
Their services have been greatly received by customers, with ARR and large customer count more than doubling since 2023.
In this report, I will look at their business in more detail and present a 2030 valuation model.
1. Business Model
2. The Opportunity
3. Valuation
4. Valuation Model
5. Conclusion
1. Business Model
Rubrik operates in the data protection and recovery subsegment of the global cybersecurity industry.
Simply put, cybersecurity companies such as Palo Alto, Zscaler, and CrowdStrike focus on attack prevention and detection. This is crucial, but unfortunately, that is often not enough, especially when a network is accessed through stolen valid credentials.
Rubrik focuses on survival and recovery by ensuring that clients can return to normal operations without large disruptions and without paying ransom.
Let’s look at their offering in more detail.
1.1. Rubrik Security Cloud
The company primarily provides its services through the Rubrik Security Cloud platform, offering clients:
Data Protection
Data Security Posture Management
Data Threat Analytics
Cyber Recovery
Let’s expand on each.
Traditional backup systems used by most organizations were built for accidental system failures, not intentional attacks. This made them slow or even unusable when a cyber breach occurred. This is because attackers often gain access to a backup system, which they then disable to cause more harm or encrypt to demand ransom. In some instances, attackers have even gotten access to data through these less-protected backup systems.