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Rubrik’s debut earnings beat expectations, shares rise in late trading

Rubrik, Inc. the Zero Trust Data Security™ company, announced financial results for the first quarter fiscal year 2025, ended April 30, 2024.

“Rubrik is a leader in one of the fastest growing new segments in the cybersecurity market, data security, with a total addressable market of about $53 billion by 2027*. The explosion of data especially with AI is creating a massive market opportunity for Rubrik. The value we bring to our customers has resulted in subscription annual recurring revenue up 46% year over year in Q1 to $856 million. While we are excited and proud of all the team has done to date, we are in the very early innings of data security and look forward to continuing to build an enduring company,” said Bipul Sinha, Rubrik’s Chief Executive Officer, Chairman, and Co-Founder.

Commenting on the Company’s financial results, Kiran Choudary, Rubrik’s Chief Financial Officer, added, “We are pleased by the strong start to the year in Q1 with strength in large transactions driving net new Subscription ARR of $72 million, up 32% year over year and Subscription ARR Contribution Margin up over 2,100 basis points year over year. We are confident in our ability to deliver strong growth in Subscription ARR and continued operating leverage towards our long-term financial model.”

First Quarter Fiscal 2025 Financial Highlights

  • Subscription Annual Recurring Revenue (ARR) up 46% year over year, grew to $856.1 million as of April 30, 2024.
    Revenue: Subscription revenue was $172.2 million, a 59% increase, compared to $108.4 million in the first quarter of fiscal 2024. Total revenue was $187.3 million, a 38% increase, compared to $135.7 million in the first quarter of fiscal 2024.
  • Gross Margin: GAAP gross margin was 48.8%, compared to 73.6% in the first quarter of fiscal 2024. This includes $48.9 million in stock-based compensation expense, compared to $0.1 million in the year ago period, due to the vesting of certain equity awards in conjunction with the initial public offering. Non-GAAP gross margin was 75.4%, compared to 73.6% in the first quarter of fiscal 2024.
  • Subscription ARR Contribution Margin: Subscription ARR Contribution Margin was (11)% compared to (32)% in the prior year period, reflecting the improvement in operating leverage in the business. Subscription ARR Contribution Margin was (8)% when adjusting for $22.8 million in employer payroll taxes due to the vesting of certain equity awards in conjunction with the initial public offering.
  • Net Loss per Share: GAAP net loss per share was $(11.48), compared to $(1.49) in the first quarter of fiscal 2024. GAAP net loss includes $630.3 million in stock-based compensation expense, compared to $0.5 million in the year ago period, due to the vesting of certain equity awards in conjunction with the initial public offering. Non-GAAP net loss per share was $(1.58), compared to $(1.48) in the first quarter of fiscal 2024.
  • Cash Flow from Operations: Cash flow from operations was $(31.4) million, compared to $(17.5) million in the first quarter of fiscal 2024. Free cash flow was $(37.1) million, compared to $(23.2) million in the first quarter of fiscal 2024. Excluding the $20.6 million for employer payroll taxes due to the vesting of certain equity awards in conjunction with the initial public offering, free cash flow would have been $(16.5) million.
  • Cash, Cash Equivalents, and Short-Term Investments: Cash, cash equivalents and short-term investments were $606.3 million as of April 30, 2024.

Recent Business Highlights

  • As of April 30, 2024, Rubrik had 1,859 customers with Subscription ARR of $100,000 or more, up 41% year over year.
  • Announced the pricing and closing of an initial public offering of 23,500,000 shares of Rubrik Class A common stock at a price to the public of $32.00 per share. Net proceeds to Rubrik from the offering were $710.3 million after deducting underwriting discounts and commissions. The shares began trading on the New York Stock Exchange on April 25, 2024, under the symbol “RBRK”. In May 2024, the underwriters exercised their option to purchase an additional 3,472,252 shares of Class A common stock at the initial public offering price of $32.00 per share. Net proceeds were approximately $104.9 million after deducting underwriters’ discounts and commissions.
  • Announced the general availability of DSPM Everywhere, which we believe is the industry’s first and only complete cyber resilience offering. DSPM Everywhere allows organizations to secure mission-critical data for comprehensive protection, recovery, and resilience against cyberattacks, whether in a cloud, SaaS, or on-premises environment.
  • Announced a strategic partnership with CrowdStrike (Nasdaq: CRWD) to accelerate data security transformation and stop breaches of critical information. By unifying rich, data-centric attack context from the Rubrik Security Cloud with the industry-leading AI-native
  • CrowdStrike Falcon® XDR platform, organizations can rapidly detect, investigate, and stop attacks targeting sensitive data.
    Announced a global strategic alliance and new services with Kyndryl (NYSE: KD), the world’s largest IT infrastructure services provider. As part of the strategic alliance, Rubrik collaborated with Kyndryl to co-develop and launch Kyndryl Incident Recovery with
  • Rubrik. This fully managed ‘as-a-service’ solution provides customers with data protection and cyber incident recovery, backup, and disaster recovery for cloud and on-premises workloads.
    Won two Global InfoSec awards for “Pioneering Data Security Posture Management (DSPM)” and “Pioneering Cyber Resilience”, in recognition of Rubrik’s leadership in advancing the field of data protection and cybersecurity in today’s rapidly evolving digital landscape.

CT Bureau

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