Core Insights - The article discusses the investment positions of Parkev Tatevosian, CFA, and mentions that The Motley Fool has positions in and recommends Rubrik [1] Company Insights - Parkev Tatevosian has no position in any of the stocks mentioned [1] - The Motley Fool has a disclosure policy regarding its investment positions [1] - The Motley Fool may compensate affiliates like Parkev Tatevosian for promoting its services [1]

Core Insights - Rubrik is a cybersecurity company specializing in Cyber Resilience, a niche that may not be widely recognized [1] Company Overview - Rubrik is listed on the NYSE under the ticker RBRK [1] - The company operates within the cybersecurity sector, focusing on enhancing resilience against cyber threats [1] Analyst Background - The author has a background in engineering and a strong interest in technology stocks, which influences their investment perspective [1]

PresentationOkay. Excellent. Good morning, everyone. Welcome to day 1 of the Barclays Tech Conference. My name is Saket Kalia. I cover software here. Honored to have with us the team here from Rubrik. We've got Bipul Sinha, CEO.Saket KaliaBarclays Bank PLC, Research Division Bipul Sinha, CEO; as well as Kiran Choudary, CFO. We've also got Head of Investor Relations, Melissa Franchi, somewhere here in the back, there in the back. Just to frame today's time, we've got about 30 minutes together. Let's take the ...

Rubrik (NYSE:RBRK) FY Conference Summary Company Overview - **Company**: Rubrik - **Industry**: Cybersecurity and Data Management - **Market Opportunity**: Rubrik aims to deliver cyber resilience and recovery solutions to businesses and governments, addressing the increasing threat of cyber disasters [11][12][13] Financial Highlights - **Net New ERR**: Achieved a record of $94 million, contributing to a total ERR of $1.35 billion, representing a growth of 34% [15] - **Profitability**: Subscription ERR contribution margin improved to over 10% year-over-year [15] - **Free Cash Flow**: Recorded over $75 million in free cash flow for the quarter [15] - **Net Retention Rate**: Maintained a strong net retention rate of over 120% [15] Industry Dynamics - **Legacy Displacement**: Rubrik is experiencing accelerated bookings from displacing legacy players like Dell, Veritas, and IBM, indicating a significant market opportunity [16][17][19] - **Market Size**: The cyber resilience market is estimated to be around $50 billion, with Rubrik currently capturing only a small portion of it [17][18] - **Customer Base**: Any organization with significant data or applications is a potential customer for Rubrik, highlighting the vast market potential [18] Product Developments - **Rubrik Security Cloud**: Comprises nearly 90% of the total ERR, with a shift from on-premise to cloud solutions accelerating [20][21] - **Identity Protection**: The identity protection segment has grown to a $20 million ERR business within three quarters, addressing the increasing threat of identity-based attacks [23][25][26] - **Agent Cloud**: A new platform in beta aimed at securing and managing agentic work within enterprises, focusing on governance and operational oversight [34][36][38] Strategic Insights - **Cloud Transformation**: The transition from on-premise to cloud solutions is ongoing, with expectations of continued decline in on-prem ERR for several quarters [21][22] - **Customer Economics**: Transitioning customers to cloud solutions is designed to be frictionless, with no significant price increases for comparable feature sets [29][31] - **AI Integration**: The acquisition of Predibase aims to enhance Rubrik's capabilities in AI, focusing on operationalizing AI for cybersecurity [34][36] Market Outlook - **Demand Environment**: There is no observed change in demand for Rubrik's products, with a strong focus on educating customers about the importance of cyber resilience [47][48] - **Revenue Dynamics**: The company anticipates that reported revenue growth will lag behind ARR growth due to accounting nuances related to material rights [52][53] Future Milestones - **Focus Areas**: Rubrik will continue to prioritize top-line growth, innovation, and profitability as key metrics for success [55]

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Financial Performance - The company reported a significant increase in revenue, with a year-over-year growth rate of 25% in Q3 2026[2] - The company anticipates continued growth, projecting a revenue increase of 20% for the next quarter[2] - New product launches are expected to contribute an additional $50 million in revenue over the next fiscal year[2] - Operating expenses increased by 12%, primarily due to higher marketing costs associated with new product launches[2] - The company reported a net loss of $5 million for the quarter, reflecting ongoing investments in growth initiatives[2] User Growth - User data indicates a 15% increase in active subscriptions, reaching a total of 1.5 million users[2] Market Expansion - Market expansion efforts have led to a 10% increase in market share in the North American region[2] - The company is exploring potential acquisitions to bolster its technology portfolio and market presence[2] Investment in Technology - The company is investing $30 million in research and development to enhance its data security solutions[2] Risk Factors - Risk factors include potential challenges in customer retention and competition in the data security market[2] - Recent rapid growth may not indicate future growth, making it difficult to evaluate future prospects[17] - The company has a history of operating losses and may not achieve or sustain profitability in the future[17] - If customers do not renew or expand their subscriptions, future results of operations could be harmed[17] - The reliance on third-party cloud providers poses risks that could adversely affect business and financial condition[17] - The competitive market environment may hinder the company's ability to grow effectively[17] - Estimates of market opportunity and growth forecasts may prove to be inaccurate, impacting business growth[17] - The dual class structure of common stock concentrates voting control, limiting influence on corporate matters[17]

Core Viewpoint - Rubrik Inc. has reported strong Q3 results with record net new subscription ARR and significant free cash flow generation, leading to a stock price increase to over $85 per share, although the current valuation appears high for new investors [2][5][13]. Recent Performance Highlights - RBRK stock has increased following robust Q3 results, with quarterly revenue growth of 51.2% year-over-year, reaching $310 million [8][10]. - The company has achieved a 3-year average revenue growth of 47.7% annually, with the last 12 months showing a revenue surge from $733 million to $1.1 billion [10]. Valuation Analysis - Key valuation metrics indicate a significant premium, with a Price-to-Sales (P/S) ratio of 18.9x compared to 3.2x for the S&P 500, and a Price-to-Free Cash Flow (P/FCF) ratio of 112.7x versus 20.5x for the S&P 500 [9]. - These ratios suggest that the market has already priced in high growth expectations, leaving limited room for error and minimal potential upside in the near to mid-term [5][13]. Growth Profile - Rubrik demonstrates strong revenue growth driven by robust market demand for its data security and management platform, particularly in the context of increasing focus on ransomware protection and cloud data resilience [6]. Profitability - Despite strong revenue growth, Rubrik is still in an investment phase, with troubling profitability metrics, but it has positive operating cash flow of $211 million, indicating improving unit economics [7]. Financial Stability - The company has a very strong balance sheet with a debt-to-equity ratio of 5.6%, cash and equivalents of $1.5 billion, and total debt of $1.1 billion against a market cap of $14 billion [11][12]. - This financial stability provides flexibility to finance operations and growth strategies without immediate liquidity concerns [12]. Investment Thesis Summary - Strengths include exceptional revenue growth momentum, record additions to subscription ARR, a very strong balance sheet, and expanding market opportunities in cyber resilience and data security [16]. - Concerns revolve around extremely high valuation multiples, substantial GAAP losses, and the stock's current price reflecting several years of strong execution [16].

Core Insights - Berkshire Hathaway is preparing for Warren Buffett's retirement through a series of leadership changes involving long-time company veterans [1] Leadership Changes - The company is implementing a transition plan that includes promoting existing executives to ensure continuity in leadership [1] - Key figures within the organization are being positioned to take on more significant roles as part of the succession strategy [1] Company Strategy - Berkshire Hathaway's approach emphasizes maintaining its core values and investment philosophy even after Buffett's departure [1] - The leadership changes are designed to uphold the company's long-term vision and operational stability [1]

Core Insights - Rubrik (RBRK) reported a strong Q3 performance, exceeding expectations and setting the stage for future growth [2] - The company benefits from a robust business model and favorable industry trends, with a reasonable valuation [2] Company Performance - Rubrik's Q3 results were described as "rock-solid," indicating strong operational performance [2] - The company is positioned well for continued growth due to its effective business strategies [2] Market Context - The investment landscape is characterized by volatility, particularly in the tech sector, which necessitates a disciplined and risk-aware approach to investing [2] - The focus on uncovering alpha in the AI revolution highlights the potential for significant returns in this evolving market [2]

Rubrik logo displayed in a data center. Key Points Rubrik's outlook is rapidly improving, underpinning a December rebound with plenty of room to run. Cash flow is a critical factor as surprise profits have entered the picture.  Analysts and institutional trends indicate that this stock is being accumulated in 2025. Interested in Rubrik, Inc.? Here are five stocks we like better. Rubrik’s (NYSE: RBRK) stock price rebounded robustly in December 2025 and will set a new all-time high by mid-year 2026 b ...