Why Rubrik Stock Plummeted Today

Core Insights - Rubrik reported better-than-expected quarterly results but experienced a significant stock decline of 18.1% following the release of its second-quarter report [1][2][4] Financial Performance - The company recorded a non-GAAP loss of $0.03 per share on sales of $309.86 million, exceeding Wall Street's average estimate by $0.31 per share and topping sales consensus by $27.6 million [4] - Revenue increased by 51.2% year over year, with margins significantly above expectations [4] Forward Guidance - For Q3, Rubrik expects sales between $319 million and $321 million and an adjusted loss of $0.16 to $0.18 per share [5] - For the full year, the company anticipates an adjusted loss of $0.44 to $0.50 per share on revenue between $1.227 billion and $1.237 billion [5] Market Reaction - Despite strong sales growth and narrowing losses indicated in the guidance, investors were not satisfied with management's targets, leading to concerns about the company's valuation [6] - Rubrik is currently valued at approximately 12.8 times this year's expected sales, even after the recent stock pullback [6]