By Mackenzie Tatananni

Rubrik stock skyrocketed in premarket trading Friday after the data security company reported an adjusted third-quarter loss that was narrower than expected and raised its guidance.

Rubrik reported an adjusted loss in the period of 21 cents a share, compared with estimates that called for a loss of 40 cents. Revenue of $236.2 million beat analysts' expectations of $217.5 million and marked a 43% increase from a year prior. The California-based software company also announced a 55% jump in subscription revenue to $221.5 million.

Shares of Rubrik climbed 23% to $65.97 on Friday. The company also raised its guidance for the fiscal year, anticipating revenue of between $860 million and $862 million, up from a range of $830 million to $838 million.

Chief Financial Officer Kiran Choudary hailed the company's performance in the third quarter, noting that it beat expectations "across all metrics."

While Guggenheim analysts led by John DiFucci acknowledged that Rubrik was exhibiting "uncommon business momentum," the analysts asserted the company likely could sustain that unusual growth.

"Rubrik is not a stagnant company and innovation has always been a key tenant of its existence," the analysts wrote. "We're still not sure how big this opportunity is, but one thing is becoming much more apparent ... it's uncommon."

Guggenheim maintained a Buy rating on the stock and increased its price target to $72 from $52.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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December 06, 2024 07:26 ET (12:26 GMT)

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