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][8] - 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, anticipating strong subscription ARR growth [20][24] - Management noted that the market is shifting towards an assumed breach mindset among IT and security leaders [7][8] 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 Predibase is expected to enhance the company's capabilities in generative AI [16][17] Q&A Session Summary Question: What has changed strategically to drive profitability? - Management highlighted the large and expanding market of cyber resilience and the efficiencies gained as the business scales [33][34] Question: Any impact from the sales compensation change on net new ARR? - Management indicated that the change has not materially impacted performance so far, with expectations for more insights by year-end [41][42] Question: How is the company leveraging data growth in its pricing model? - Management explained that the pricing model combines data volume and security features, allowing for growth as customer data and applications expand [47][48] Question: What drove the early renewal activity this quarter? - Management noted that early renewals were tied to expansion deals and were not directly related to the sales compensation structure changes [52][54] Question: What is the outlook for the federal market? - Management sees the federal market as a significant opportunity, continuing to invest in growth and recently receiving FedRAMP moderate certification [85]