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]

Investing RBRK Surges 13% After Crushing Q3 FY26 Earnings Quick Read ByJoel South Published 4 minutes ago Skip to content S&P 500 6,860.00 +0.03% Dow Jones 47,854.50 -0.30% Nasdaq 100 25,598.20 -0.07% Russell 2000 2,533.11 +0.84% FTSE 100 9,711.80 0.00% Nikkei 225 50,619.00 +1.51% Stock Market Live December 4: S&P 500 (SPY) Flat Ahead of Potential Rate Cuts This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them. How to Ad ...

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]