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]

Kunakorn Rassadornyindee / Shutterstock.com Quick Read Rubrik (RBRK) beat earnings by $0.27 and posted non-GAAP EPS of $0.10 versus consensus of negative $0.17. Revenue reached $350.2M with 48% year-over-year growth. Free cash flow surged nearly five-fold to $76.89M from $15.57M in the prior year quarter. Rubrik raised full-year revenue guidance to $1.28B to $1.282B. Shares jumped 24.1% as the profitability milestone signals operating leverage at scale. Subscription revenue grew 52% to $336.4M. If ...

Financial Data and Key Metrics Changes - Subscription ARR reached $1.35 billion, growing 34% year over year [5][24] - Net new subscription ARR reached a record $94 million [5][24] - Subscription revenue was $336 million, growing 52% year over year [5][26] - Total revenue was $350 million, up 48% [26] - Free cash flow was $77 million, compared to $16 million in the same quarter last year [29] Business Line Data and Key Metrics Changes - Subscription NRR remained above 120% [5][25] - Customers with $100K or more in subscription ARR reached 2,638, growing 27% year over year [6][25] - The identity resilience platform achieved about $20 million in subscription ARR, with significant growth in the number of identity customers [15][81] Market Data and Key Metrics Changes - Revenue from the Americas grew 51% to $256 million [26] - Revenue from outside the Americas grew 41% to $94 million [26] - Cloud ARR reached $1.17 billion, up 53% [24] Company Strategy and Development Direction - The company aims to lead in the security and AI operations space, focusing on cyber resilience and AI transformation [7][9] - Rubrik's strategy includes expanding its product offerings in data protection, identity resilience, and AI operations [10][18] - The company is investing in R&D and go-to-market strategies to enhance its offerings and market penetration [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for cyber resilience solutions and the growth potential in the AI sector [23][30] - The company anticipates continued strong performance and is raising its outlook for the fourth quarter and full year [23][31] Other Important Information - The company has launched Rubrik Agent Cloud, a new product suite for managing AI agents [18][21] - The integration with Microsoft Copilot Studio and Amazon Bedrock is expected to enhance the capabilities of Rubrik Agent Cloud [21][68] Q&A Session Summary Question: How additive can identity be to an average data protection deal? - Identity is completely additive to the deal, serving as a net new buyer for Rubrik, particularly in the CISO organization [37][38] Question: What is driving the acceleration in legacy replacement bookings? - The acceleration is driven by the need for modernization ahead of AI and the recognition of the risks posed by cyber attacks [46] Question: How is the platform expansion influencing sales strategy? - The strategy remains focused on being a true platform company, making it easier for customers to adopt and consume Rubrik products [53][54] Question: How is Rubrik positioned to capture the AI agent opportunity? - Rubrik is well-positioned due to its focus on data, identity, and business applications, providing a complete agentic operations platform [59][60] Question: What is the monetization strategy for Rubrik Agent Cloud? - Rubrik Agent Cloud is a separate product suite, and customer feedback has been strong during its beta phase [70]

Financial Data and Key Metrics Changes - Subscription ARR reached $1.35 billion, growing 34% year over year [4][21] - Net new subscription ARR reached a record $94 million [4][21] - Subscription revenue was $336 million, growing 52% year over year [4][23] - Subscription NRR remained strong, above 120% [4][22] - Free cash flow was $77 million, compared to $16 million in the same quarter last year [5][25] Business Line Data and Key Metrics Changes - Data protection, identity resilience, and AI operations are the three main business lines [8] - Identity resilience platform achieved approximately $20 million in subscription ARR, doubling the number of identity customers in Q3 [12][49] - Cloud ARR reached $1.17 billion, up 53% [21] - The number of customers with $100,000 or more in subscription ARR grew 27% to 2,638 [22] Market Data and Key Metrics Changes - Revenue from the Americas grew 51% to $256 million, while revenue from outside the Americas grew 41% to $94 million [23] - The company continues to see strong adoption of its Rubrik Security Cloud, contributing to overall revenue growth [21] Company Strategy and Development Direction - The company aims to lead in the security and AI operations space, focusing on cyber resilience and AI transformation [5][6] - Rubrik's strategy includes expanding its product offerings to address the evolving cyber landscape and the rise of AI agents [7][16] - The company plans to invest in R&D and go-to-market strategies to enhance its offerings in data, security, and AI [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the robust cyber resilience market and strong demand for their offerings [20][26] - The company raised its outlook for Q4 and the full fiscal year 2026, anticipating continued strong performance [20][27] - Management highlighted the importance of understanding risks associated with cyber breaches and the need for effective recovery solutions [6][49] Other Important Information - The company has launched Rubrik Agent Cloud, a new product suite aimed at managing AI agents safely and confidently [16][18] - The integration with Microsoft Copilot Studio and Amazon Bedrock is expected to enhance the capabilities of Rubrik Agent Cloud [18][44] Q&A Session Summary Question: How additive can identity be to an average data protection deal? - Identity is completely additive to the deal, creating new budget and targeting the CISO organization [30] Question: What is driving the acceleration in legacy replacement bookings? - The acceleration is driven by the need for modernization ahead of AI and the recognition of the risks posed by cyber attacks [34] Question: How is the platform expansion influencing the sales strategy? - The strategy remains focused on providing a comprehensive platform that enhances customer value through multiple product adoption [36] Question: What is the outlook for net new ARR going into 2027? - Net new ARR is expected to show some quarterly movements, but the focus should be on the annual number [51] Question: Is Rubrik's platform playing a role in lowering insurance premiums for customers? - Yes, having both identity resilience and cyber recovery is attractive for insurance companies, leading to potential recommendations [53] Question: What is the go-to-market strategy for the agent market? - The focus is on operationalizing agents and providing governance controls, with expectations for a gradual market emergence [56]

Core Insights - Rubrik (NYSE: RBRK) reported strong fiscal Q3 results, exceeding expectations in both revenue and profitability, leading to a significant stock price increase in after-hours trading [3][5][10] Financial Performance - Revenue reached $350.2 million, surpassing the consensus estimate of $325.6 million, marking a 48% year-over-year increase [6][11] - Subscription revenue grew by 52% to $336.4 million, indicating effective scaling of the business model [6][11] - The company achieved a non-GAAP EPS of $0.10, compared to an expected loss of $0.17, marking a significant positive surprise [5][11] - Free cash flow surged to $76.9 million, up 394% year-over-year, while operating cash flow was reported at $85.5 million [7][11] Profitability Metrics - Non-GAAP gross margin expanded to 82.8%, an increase of 360 basis points from the previous year, reflecting improved operating leverage [7][11] - Rubrik posted its first positive non-GAAP operating income of $10.1 million, signaling progress towards sustained profitability [8][11] Future Outlook - Management raised the full-year revenue guidance to between $1.280 billion and $1.282 billion, with Q4 revenue expected to be between $341 million and $343 million [9][11] - The full-year non-GAAP net loss per share is now projected to be between $0.20 and $0.16, indicating a tighter range and reflecting a shift towards profitability [9][11] Strategic Initiatives - CEO Bipul Sinha highlighted the company's focus on AI transformation and new product launches, including Rubrik Agent Cloud and Rubrik Okta Recovery, which are expected to drive future growth [10] - Partnerships with CrowdStrike and Cognizant were emphasized as strategic moves to enhance offerings in data protection and cyber resilience [10] Market Position - Rubrik's stock trades at approximately 13 times trailing sales, indicating a premium valuation as the market anticipates continued execution on its profitability roadmap [12] - Analysts remain optimistic, with 21 buy ratings and a consensus price target of $114, suggesting potential upside from current levels [12]

Core Insights - N2K Networks has launched the Data Security Decoded podcast on the N2K CyberWire network, aimed at providing research-driven insights for cybersecurity and IT professionals to mitigate data security risks and enhance resilience outcomes [1][3]. Group 1: Podcast Overview - The podcast offers actionable insights for practitioners to prepare for cyber attacks, discussing the latest threats, trends, and best practices [2]. - Each episode features discussions with leading threat intelligence analysts and global cyber policy experts to aid listeners in making informed decisions [2]. Group 2: Episode Highlights - The inaugural episode titled "Secure by Design, Secure by Default, Secure by Demand: The Signs of a Secure Software Supply Chain" features Lauren Zabierek from the Institute for Security and Technology, emphasizing the importance of security as a business decision and how market incentives can lead to insecure systems [4]. Group 3: Release Schedule - New episodes of the podcast will be released bi-monthly on Tuesdays, encouraging subscriptions for updates on future episodes [5]. Group 4: Company Background - Rubrik, the sponsor of the podcast, specializes in data protection and cyber resilience, providing solutions that secure and recover data across various cloud environments [6]. - N2K Networks focuses on delivering critical industry insights and strategic intelligence to empower cybersecurity professionals, collaborating with various organizations from Fortune 100 companies to startups [7].

Core Insights - Rubrik and Dell Technologies are significant players in the enterprise data protection and cybersecurity market, offering solutions for data backup, recovery, and ransomware protection in hybrid and multi-cloud environments [1][2] Market Overview - The global cybersecurity market was valued at $193.73 billion in 2024 and is projected to grow to $562.77 billion by 2032, representing a CAGR of 14.40% from 2025 to 2032 [2] Rubrik's Performance - Rubrik's subscription ARR surpassed $1.25 billion in Q2 of fiscal 2026, growing 36% year over year, with net new subscription ARR reaching $71 million [4] - The company experienced a 27% year-over-year increase in customers with over $100K in subscription ARR, totaling 2,505 customers as of July 31, 2025 [6] - Rubrik's cloud ARR grew 57% to $1.1 billion, driven by the adoption of its Rubrik Security Cloud platform [6] - The launch of "Rubrik Agent Cloud" aims to enhance AI agent adoption while addressing security and compliance risks [5] Dell's Performance - Dell Technologies is enhancing its position in the enterprise data protection market through its PowerProtect portfolio and data security innovations [7] - The company announced advancements in private cloud infrastructure and improvements to its AI Data Platform, which enhances its capability to transform data into actionable AI insights [8][9] - Dell shares have surged 40.8% year-to-date, outperforming Rubrik's 19.1% gain, attributed to its diversified portfolio and strong AI momentum [11][12] Valuation and Earnings Estimates - Rubrik shares are currently overvalued with a Value Score of F, trading at a forward Price/Sales ratio of 10.52X, while Dell shares are considered cheap with a Value Score of A, trading at 0.96X [15] - For fiscal 2026, Rubrik is expected to report a loss of 49 cents per share, while Dell's earnings estimate is pegged at $9.54 per share, indicating a 17.20% year-over-year increase [17] Conclusion - Both Rubrik and Dell Technologies are positioned to benefit from the growing demand for data protection and AI-driven cybersecurity solutions, but Dell currently has a stronger edge due to its diversified business model, solid earnings growth, and attractive valuation [20]

Core Insights - Cognizant has expanded its partnership with Rubrik to offer Business Resilience-as-a-Service (BRaaS), a subscription-based model aimed at helping enterprises recover from cyber incidents and ransomware attacks while aligning recovery objectives with business outcomes [2][4]. Group 1: Partnership Overview - The partnership combines Rubrik's AI-driven security platform with Cognizant's global delivery capabilities, enabling clients to recover from cyber incidents quickly and confidently [4][5]. - The BRaaS offering is one of the first of its kind, designed to provide a flexible, consumption-based model for business resilience [2][4]. Group 2: Market Context - The global AI market is rapidly expanding, leading organizations to adopt advanced AI technologies, which in turn increases the attack surface for cyber threats [3]. - The frequency and sophistication of ransomware attacks are rising, necessitating a shift from simple prevention to a more resilient approach to safeguard critical data [3][4]. Group 3: Strategic Goals - The BRaaS model aims to bridge the gap between IT recovery and true business continuity, allowing organizations to minimize downtime and maintain customer trust during cyber disruptions [4][5]. - Cognizant's expertise in cloud and infrastructure, combined with Rubrik's security platform, is intended to help clients protect valuable data assets and accelerate secure growth in the AI era [5]. Group 4: Technological Integration - Rubrik's Agent Rewind feature provides capabilities to mitigate risks associated with AI agents, allowing enterprises to safely undo destructive actions [5]. - Cognizant's Neuro AI platform, which includes multi-agent orchestration and industry-specific AI solutions, aims to operationalize AI while ensuring robust data protection [5].

Core Insights - Rubrik is experiencing significant growth due to its cloud security platform, with cloud ARR increasing by 57% year-over-year to $1.1 billion in Q2 of fiscal 2026, driven by the adoption of the Rubrik Security Cloud platform [1][9] Group 1: Product Innovations and Acquisitions - The launch of "Rubrik Agent Cloud" aims to accelerate AI agent adoption in enterprises while managing security and compliance risks, providing full lifecycle management for AI agents [2] - The acquisition of Predibase enhances Rubrik's AI capabilities, allowing organizations to customize models based on their data, improving accuracy, reducing costs, and automating data governance [3] Group 2: Financial Performance and Projections - For Q3 of fiscal 2026, Rubrik's revenues are projected to be between $319 million and $321 million, indicating a year-over-year growth rate of 35% to 36% [4] - The Zacks Consensus Estimate for Rubrik's loss in fiscal 2026 is set at 49 cents per share, unchanged over the past 30 days, compared to earnings of $1.57 per share in the same quarter last year [12] Group 3: Competitive Landscape - Rubrik faces strong competition in the cybersecurity market from companies like Fortinet and Datadog, both of which are enhancing their service offerings to provide more integrated solutions [5][6] Group 4: Stock Performance and Valuation - Rubrik's shares have increased by 17.5% year-to-date, underperforming the broader Zacks Computer & Technology sector's return of 22.9% and the Internet - Software industry's appreciation of 17.9% [7] - The forward 12-month Price/Sales ratio for Rubrik is 10.42X, significantly higher than the Computer & Technology sector's 6.88X, indicating that Rubrik's stock may be overvalued [10]