Rubrik, Inc.(US:RBRK)2025-09-09 22:02Financial Data and Key Metrics Changes - Subscription ARR surpassed $1.25 billion, growing 36% year-over-year [4][20] - Subscription revenue was $297 million, growing 55% year-over-year [4][22] - Total revenue was $310 million, up 51% [22] - Free cash flow generated was over $57 million, representing a 19% margin [5][24] - Non-GAAP gross margin was 82%, compared to 77% in the year-ago period [22][23] Business Line Data and Key Metrics Changes - Net new subscription ARR reached $71 million in the second quarter [4][20] - Subscription NRR remained strong, above 120% [4][21] - Customers with $100,000 or more in subscription ARR crossed 2,500, growing 27% year-over-year [4][21] Market Data and Key Metrics Changes - Revenue from the Americas grew 53% to $225 million [22] - Revenue from outside the Americas grew 46% to $85 million [22] Company Strategy and Development Direction - Company is evolving into a security and AI company, focusing on cyber resilience and enterprise AI acceleration [6][8] - The Rubrik Security Cloud platform combines data security posture management, identity resilience, and cyber recovery [6][7] - The company aims to lead the cyber resilience market while building a future for enterprise AI [8][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth opportunities ahead, particularly in the cyber resilience market [6][20] - The company raised its outlook for the year based on strong performance and market demand [20][24] - Management highlighted the importance of cyber resilience for businesses transitioning to AI enterprises [33][34] Other Important Information - The company reported a significant improvement in subscription ARR contribution margin, up about 1,800 basis points year-over-year [4][23] - The acquisition of Prettibase is expected to enhance capabilities in generative AI [17][18] Q&A Session Summary Question: Free cash flow margin and profitability changes - Management noted that strong ARR performance and margin improvement drove the 19% free cash flow margin, with expectations for continued improvement in the second half [33][35] Question: Impact of sales compensation changes on net new ARR - Management indicated that the sales compensation change did not materially impact performance in the first half, with expectations for a clearer picture by year-end [41][42] Question: Drivers of early renewal activity - Early renewals were primarily tied to expansion deals and multi-year contracts, not directly related to changes in sales compensation structure [52][54] Question: Non-cloud ARR decline - The decline in non-cloud ARR is attributed to ongoing migrations to cloud solutions, with expectations for stabilization in the future [52][55] Question: DSPM market adoption and competitive landscape - Management believes that combining data security and identity resilience will drive future growth in the DSPM market, with a holistic approach to cyber resilience [66][67] Question: Competitive environment and deal win rates - The company continues to win a majority of deals against both legacy and new Gen vendors due to its differentiated platform [72][73] Question: Fed market opportunities - The company is investing in the Fed market, which is seen as a significant opportunity for cyber resilience solutions [85][86] Question: Deal sizes and renewal patterns across tiers - Nearly half of new deals are in the Enterprise tier, with expansion paths varying based on customer needs and existing contracts [88][90]