Core Insights - Rubrik reported a strong performance in Q4, with subscription ARR reaching $1.46 billion, a 34% increase year over year, and total revenue of $378 million, up 46% [2][5][19] - The company added a record $115 million in net new subscription ARR during the quarter, marking the highest quarterly record in its history [2][5] - Subscription net retention remained robust at over 120%, driven by data growth and increased adoption of security products, which contributed over 45% to net retention [2][4] Customer and Revenue Growth - Rubrik ended the quarter with 2,805 customers generating $100,000 or more in subscription ARR, a 25% increase year over year, representing 87% of total subscription ARR [1] - The company added 32 customers with $1 million or more in subscription ARR, resulting in over 50% growth in that segment [1] - Cloud ARR reached $1.29 billion, accounting for 88% of subscription ARR, with a 48% increase [6][4] Financial Performance - Subscription revenue for the quarter was $365 million, reflecting a 50% increase, while total revenue was $378 million, up 46% [2][5] - Free cash flow for the fiscal year was approximately $238 million, significantly up from $22 million in the previous year [8][5] - The company reported a non-GAAP gross margin of 84%, an increase from 80% a year earlier, benefiting from improved hosting efficiency and revenue outperformance [7][5] Future Guidance - For FY27, Rubrik guided subscription ARR to be between $1.829 billion and $1.839 billion, indicating a growth rate of approximately 25% to 26% [3][19] - Total revenue is expected to be between $1.597 billion and $1.607 billion, with a non-GAAP subscription ARR contribution margin of around 13% [19] - The company anticipates free cash flow of $265 million to $275 million for FY27 [19] Product and Market Strategy - Rubrik's product strategy focuses on cyber resilience, identity management, and AI controls, with competitive win rates exceeding 90% [10][11] - The company has seen significant growth in its identity solutions, surpassing 900 customers, and is positioned as a leader in identity recovery [11] - The Rubrik Agent Cloud has moved to general availability, with multiple proofs of concept underway with enterprise clients [12][10] Market Trends and Challenges - Executives noted that demand for cyber resilience is accelerating alongside AI adoption and rising threats, emphasizing the importance of their offerings in this context [13] - The company is closely monitoring hardware component pricing but has not observed significant impacts on business results [15] - Rubrik is investing in R&D and go-to-market strategies to scale newer offerings while not assuming significant contributions from AI in the near term [20]

Financial Data and Key Metrics Changes - The company ended Q4 with a record net new subscription ARR growth of $115 million, significantly exceeding expectations [5] - Subscription ARR reached $1.46 billion, growing 34% year-over-year [20] - Subscription revenue was $365 million, up 50% year-over-year, contributing to total revenue of $378 million, which increased by 46% [22] - Free cash flow for Q4 was $70 million, while for the full fiscal year, it was $238 million, compared to $22 million in the prior fiscal year [25][29] - Non-GAAP gross margin improved to 84% from 80% year-over-year [23] Business Line Data and Key Metrics Changes - The adoption of Rubrik Security Cloud resulted in $1.29 billion of cloud ARR, up 48%, representing 88% of subscription ARR [21] - The number of customers contributing $100,000 or more in subscription ARR rose by 25% to 2,805, now representing 87% of subscription ARR [22] - The identity line of business saw rapid growth, crossing 900 customers in just a few quarters [49] Market Data and Key Metrics Changes - Revenue from the Americas grew 45% to $268 million, while revenue from outside the Americas grew 51% to $109 million [23] - The company reported a strong subscription net retention rate of over 120% [21] Company Strategy and Development Direction - The company is focused on advancing its mission to secure and accelerate AI transformation, with a unique platform that integrates data, identity, and application context [6][19] - Rubrik is positioning itself as a leader in the cyber resilience market, leveraging its differentiated technology platform to capture emerging opportunities in AI and identity security [20][29] - The company plans to invest in R&D and go-to-market strategies to target regions and verticals with attractive ROI [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the robust cyber resilience market and the company's ability to achieve strong growth in subscription ARR [26] - The company anticipates continued operational investments to drive innovation in data security and AI [26] - Management highlighted the importance of maintaining a strong cash position and optimizing capital structure to support growth [25] Other Important Information - The company has made Rubrik Agent Cloud generally available, with ongoing POCs across early AI adopters and Fortune 500 companies [17] - The company is actively engaged in the emerging sovereign cloud market, responding to geopolitical concerns regarding data sovereignty [39][41] Q&A Session Summary Question: Insights on Agent Cloud POCs with Fortune 500 and AI startups - Management indicated that customers are focused on understanding and controlling the agents in their systems, with monitoring and guardrail solutions being high priorities [32][34] Question: Customer impetus for Rubrik Sovereign Cloud - Management noted that geopolitical concerns have driven countries to seek data sovereignty, leading to the development of dedicated products in this area [39][41] Question: Concerns about AI impacting core business value - Management reassured that Rubrik's complex software and its role as a system of record for data and identity will remain critical, even as AI evolves [70][71] Question: Dynamics of Q4 performance and Q1 guidance - Management clarified that while Q4 was strong, they do not expect significant pull-forward effects impacting Q1 guidance [78] Question: Competitive environment and legacy vendor displacement - Management stated that they are early in the legacy replacement process, with a win rate exceeding 90% against data protection vendors [83]

Financial Data and Key Metrics Changes - The company ended Q4 with a record net new subscription ARR growth of $115 million, significantly exceeding expectations [5] - Subscription ARR reached $1.46 billion, growing 34% year-over-year [20] - Subscription revenue was $365 million, up 50% year-over-year [22] - Free cash flow for Q4 was $70 million, with total free cash flow for fiscal 2026 at $238 million, compared to $22 million for fiscal 2025 [25][29] - Non-GAAP gross margin improved to 84% in Q4 from 80% in the previous year [23] Business Line Data and Key Metrics Changes - The adoption of Rubrik Security Cloud resulted in $1.29 billion of cloud ARR, up 48%, representing 88% of subscription ARR [21] - The number of customers contributing $100,000 or more in subscription ARR rose 25% to 2,805, now representing 87% of subscription ARR [22] - The identity line of business saw rapid growth, crossing 900 customers in just three to four quarters [49] Market Data and Key Metrics Changes - Revenue from the Americas grew 45% to $268 million, while revenue from outside the Americas grew 51% to $109 million [23] - The company reported a strong subscription net retention rate of over 120% in Q4, with expansion through additional security products contributing over 45% to this rate [21] Company Strategy and Development Direction - The company is focused on advancing its mission to secure and accelerate the world's AI transformation, with a strong emphasis on cyber resilience and identity protection [19][50] - Investments will continue in R&D to accelerate innovation in data security and AI, as well as in go-to-market strategies targeting high ROI regions and verticals [26][29] - The launch of Rubrik Agent Cloud aims to provide dynamic real-time AI agent controls to accelerate enterprise AI transformation [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the robust cyber resilience market and the company's differentiated technology platform, expecting strong growth in subscription ARR [25][29] - The company anticipates continued operational investments and a focus on scaling emerging products like the Identity Resilience Platform and Rubrik Agent Cloud [26][29] - Management highlighted the importance of data integrity and availability as foundational for AI transformation, asserting that Rubrik's role will only grow with the rise of AI [71] Other Important Information - The company reported a competitive win rate exceeding 90% in Q4, indicating strong market positioning against legacy vendors [7][85] - The company is actively engaging with customers regarding the emerging sovereign cloud opportunity, which is still evolving [41][42] Q&A Session Summary Question: Insights on Agent Cloud POCs with Fortune 500 and AI startups - Management indicated that customers are focused on understanding the number of agents in their systems and how to control them, with real-time dynamic guardrails being a priority [33][34] Question: Customer impetus for Rubrik Sovereign Cloud - Management noted that geopolitical concerns have driven countries to seek sovereign data solutions, with significant product adaptations required [40][42] Question: Concerns about AI impacting core business value - Management reassured that Rubrik's complex software is not easily replicable by AI, emphasizing the importance of data infrastructure for AI transformation [70][72] Question: Dynamics of Q4 performance and Q1 guidance - Management clarified that while Q4 was strong, they do not expect significant pull-forward effects impacting Q1 guidance [80] Question: Competitive environment and legacy vendor displacement - Management stated that there is still a large opportunity for legacy replacement, with a high win rate against data protection vendors [85]

Financial Data and Key Metrics Changes - The company ended Q4 with a record net new subscription ARR growth of $115 million, significantly exceeding expectations [4] - Subscription ARR reached $1.46 billion, growing 34% year-over-year [20] - Subscription revenue was $365 million, up 50% year-over-year, while total revenue was $378 million, up 46% [22] - Free cash flow for Q4 was $70 million, and for the full fiscal year, it was $238 million, compared to $22 million for fiscal 2025 [25][29] - Non-GAAP gross margin improved to 84% in Q4 from 80% in the previous year [23] Business Line Data and Key Metrics Changes - The adoption of Rubrik Security Cloud resulted in $1.29 billion of cloud ARR, up 48%, representing 88% of subscription ARR [21] - The number of customers contributing $100,000 or more in subscription ARR rose 25% to 2,805, representing 87% of subscription ARR [22] - The identity line of business saw rapid growth, crossing 900 customers in just a few quarters [49] Market Data and Key Metrics Changes - Revenue from the Americas grew 45% to $268 million, while revenue from outside the Americas grew 51% to $109 million [23] - The company reported a strong subscription net retention rate of over 120% in Q4, with expansion driven by additional security product adoption [21] Company Strategy and Development Direction - The company is focused on advancing its mission to secure and accelerate AI transformation, leveraging its unique platform for cyber resilience and identity protection [18][70] - Investments will continue in R&D to accelerate innovation in data security and AI, as well as in go-to-market strategies targeting high ROI regions and verticals [26] - The company aims to redefine the enterprise AI market with its unique agent control and guardrail solutions [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the robust cyber resilience market and the company's differentiated technology platform, expecting strong growth in subscription ARR [25] - The company is actively monitoring geopolitical developments affecting data sovereignty and is engaged with customers to adapt to these changes [39][41] - Management believes that the opportunity for legacy replacement in the data protection market is significant, with a win rate exceeding 90% against competitors [82] Other Important Information - The company has made Rubrik Agent Cloud generally available, with ongoing POCs across early AI adopters and Fortune 500 companies [17] - The company plans to hold its inaugural Investor Day on June 10 during the Forward user conference in Las Vegas [30] Q&A Session Summary Question: Insights on Agent Cloud POCs with Fortune 500 and AI startups - Customers are focused on understanding the number of agents in their systems and how to control them, with monitoring and observability being high priorities [32][34] Question: Customer impetus for Rubrik Sovereign Cloud - Geopolitical concerns have driven countries to seek data sovereignty, leading to the development of sovereign cloud solutions [39][40] Question: Concerns about AI impacting core business value - Management believes that Rubrik's comprehensive data infrastructure is essential for AI transformation and that the importance of their solutions will only grow [68][70] Question: Dynamics of Q4 performance and Q1 guidance - Management indicated that Q4's strong performance does not negatively impact Q1 guidance, as the business is viewed on an annual basis [76][78] Question: Competitive environment and legacy vendor displacement - The company sees significant runway in displacing legacy vendors, with a strong competitive position in the market [82]

Investor Presentation Fourth Quarter Fiscal 2026 Copyright © Rubrik 2026 1 Copyright © Rubrik 2026 1 9-46-84 0-199-199 25-188-244 0-180-110 130-66-232 6-104-221 30-19-74 0-132-81 103-61-183 5-86-185 TEXT SECONDARY 0-149-149 4-129-186 0-100-100 18-58-123 102-221-221 117-216-248 153-233-233 117-216-248 PRIMARY 0-85-53 69-41-122 17-41-95 78-202-139 184-151-248 65-148-250 169-238-209 208-185-251 160-202-253 Important Notice and Disclaimers Forward-Looking Statements This press release and the related conference ...

Core Insights - Rubrik (RBRK) is set to announce its fourth-quarter fiscal 2026 results on March 12, with expected revenues between $341 million and $343 million, reflecting approximately 33% year-over-year growth. The anticipated non-GAAP loss per share is between 10 cents and 12 cents [1][8]. Revenue Expectations - The Zacks Consensus Estimate for Rubrik's revenues stands at $342.11 million, indicating a year-over-year increase of 332.55%. The consensus for loss per share is 11 cents, unchanged over the past month. In the same quarter last year, Rubrik reported a loss of 18 cents per share [2]. Performance Drivers - Rubrik's fourth-quarter performance is expected to benefit from its strong position in the growing cyber resilience market and increasing demand for its data security solutions [3]. - The company has shown robust subscription ARR growth, with 2,638 customers contributing over $100K in subscription ARR, marking a 27% year-over-year increase. These large customers now account for 86% of Rubrik's subscription ARR, up from 83% the previous year [4]. Customer Growth - In Q4 fiscal 2026, Rubrik added a record 23 new customers with subscription ARR of $1 million or more, leading to over 50% growth in its $1 million subscription base. The average subscription dollar-based net retention rate exceeds 120%, indicating strong customer satisfaction and consistent expansion within the existing customer base [5]. Cloud ARR Growth - Cloud ARR reached $1,175 million, representing a 53% year-over-year increase, driven by the adoption of the Rubrik Security Cloud platform. Innovations such as the Identity Resilience platform and Rubrik Agent Cloud are expected to have significantly contributed to the company's performance in the fourth quarter [6]. Competitive Landscape - Despite its growth, Rubrik faces stiff competition and a substantial increase in operating expenses, which may negatively impact its performance in the upcoming quarter [7]. Clientele Expansion - Rubrik's expanding clientele includes major industry players like Amazon Web Services (AWS), CrowdStrike, and Microsoft. The collaboration with AWS aims to enhance cyber resilience and facilitate enterprise AI adoption through Rubrik's AI portfolio [8][9].

Core Insights - Rubrik Inc. is identified as a strong machine learning stock to consider for investment, despite a recent price target reduction by Goldman Sachs from $120 to $80, while maintaining a Buy rating [1][9] - The rapid pace of AI innovation is highlighted, with examples such as Claude Cowork and OpenAI's Frontier, indicating the evolving nature of the AI ecosystem [2] - Goldman Sachs notes that Rubrik operates in a relatively insulated segment of the technology stack, suggesting selective investment opportunities despite market volatility [3] Company Performance - Rubrik's share price has experienced a significant correction, with a year-to-date decline of 26%, and analysts have adjusted price targets downward due to lower valuation multiples and competitive pressures [4] - Despite the price adjustments, 96% of analysts maintain a Buy rating on Rubrik, with a consensus one-year median price target of $108.5, indicating a potential upside of 94% [5] Company Overview - Rubrik Inc. specializes in cybersecurity, focusing on data protection, cyber resilience, and enterprise AI, with its Security Cloud platform designed to secure and recover data across cloud environments [6]

Core Thesis - Rubrik, Inc. is positioned as a leader in cybersecurity and cloud data management, evolving from a backup software vendor to a full-stack cyber resilience and AI data platform provider [2][3] Company Overview - Founded in 2014, Rubrik is based in Palo Alto and serves over 6,000 global enterprises, including notable clients like Barclays and Home Depot [2] - The company transitioned to a subscription-first model post-IPO in April 2024, with over 90% of its revenue derived from recurring SaaS contracts [2] Product and Technology - Rubrik's platform integrates backup, detection, governance, and continuity, enhanced by AI-driven modules such as "Ruby" and Project Annapurna, which automate compliance and threat response [3] - The acquisition of Predibase in 2025 bolstered Rubrik's AI capabilities, allowing clients to utilize protected data for generative AI and reduce inference costs [3] Financial Performance - In FY2025, Rubrik reported revenue of $886.5 million, reflecting a 41% year-over-year growth, and crossed $1.1 billion in annual recurring revenue (ARR) [4] - The company achieved positive free cash flow and maintained gross margins exceeding 70% [4] Market Position and Valuation - Rubrik trades at approximately 8 times EV/revenue, presenting a less crowded investment opportunity compared to peers like CrowdStrike, with potential for asymmetric upside as demand for AI-driven cyber resilience grows [5] - The company has been recognized as a Gartner "Leader" for six consecutive years, indicating a strong market position and customer loyalty [4] Recent Developments - The stock price of Rubrik has appreciated about 33.01% since December 2024, reflecting the successful execution of its growth thesis and ongoing expansion of its AI-driven platform [6]

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]

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]