• Subscription ARR: $1.093 billion, growing 39% year-over-year.
• Net New Subscription ARR: Over $90 million in the fourth quarter.
• Subscription Revenue: $244 million, growing 54% year-over-year.
• Subscription NRR: Remained strong above 120%.
• Customers with $100,000+ Subscription ARR: 2,246, growing 29% year-over-year.
• Customers with $1 million+ Subscription ARR: 162, growing 64% year-over-year.
• Subscription ARR Contribution Margin: Improved over 1,400 basis points year-over-year.
• Free Cash Flow: Over $75 million in the quarter; approximately $22 million for the full fiscal year.
• Total Revenue: Grew 47% year-over-year.
• Free Cash Flow Margin: 29% in the quarter.
• Non-GAAP Gross Margin: 80% in the fourth quarter.
• Cash Position: $705 million in cash, cash equivalents, restricted cash, and marketable securities.
• Debt: $322 million.

• Warning! GuruFocus has detected 3 Warning Signs with RBRK.

Release Date: March 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Rubrik Inc (NYSE:RBRK) reported a significant increase in subscription ARR, reaching $1.093 billion, a 39% year-over-year growth.
• Subscription revenue grew by 54% year-over-year, indicating strong demand for Rubrik's offerings.
• The company achieved a record net new subscription ARR of over $90 million in the fourth quarter.
• Rubrik Inc (NYSE:RBRK) reported a substantial improvement in profitability, with a free cash flow of over $75 million for the quarter.
• The company continues to expand its customer base, with a 29% increase in customers with $100,000 or more in subscription ARR.

Negative Points

• Despite strong revenue growth, Rubrik Inc (NYSE:RBRK) is still reporting non-GAAP earnings per share in the negative range for fiscal 2026.
• The company anticipates a moderation in cash flow for fiscal 2026, indicating potential challenges in maintaining the current growth momentum.
• There is a noted divergence between revenue growth and ARR growth, with revenue expected to grow at 30% compared to ARR's 24% growth.
• Rubrik Inc (NYSE:RBRK) is still early in its journey with its Annapurna platform, indicating that it may take time to see meaningful adoption and impact.
• The company faces ongoing competition from both legacy and new-generation vendors, which could impact its market share and growth prospects.

Q & A Highlights

Q: How do you feel about the Total Addressable Market (TAM) for data protection, especially with the shift to cloud and GenAI? A: Bipul Sinha, CEO, explained that Rubrik has transformed the traditional data protection market by integrating DSPM and cyber recovery, expanding their TAM to over $50 billion. The shift to cloud and GenAI increases the need for cyber resilience, further expanding their market opportunity.

Q: What are your leading-edge customers telling you about their evolving requirements for the next 2-3 years? A: Bipul Sinha highlighted that customers are focusing on cyber resilience, assuming breaches will happen. Rubrik is doubling down on data security, identity security, and cyber recovery. They are also exploring opportunities with their Annapurna platform to leverage customer data for AI applications.

Q: Can you provide more details on the substantial improvement in subscription ARR contribution margin? A: Kiran Choudary, CFO, noted that the improvement was driven by sales and marketing efficiencies, increased sales productivity, and leveraging a global talent pool. Larger transactions and strategic partnerships with customers also contributed to the margin improvement.

Q: Why is there a divergence between revenue growth and ARR growth in your guidance? A: Kiran Choudary explained that the divergence is due to the ongoing cloud transformation, which initially lagged ARR growth but is now benefiting revenue growth. Nonrecurring upfront revenue from material rights also adds tailwinds to revenue growth.

Q: How is Rubrik's strategic partnership with Microsoft evolving, and what impact does it have on your position in the market? A: Bipul Sinha emphasized the strong partnership with Microsoft, focusing on complementary offerings in cloud and data security. Rubrik's solutions for Azure and M365 have led to significant wins, and the partnership continues to strengthen with co-engineered products and recognition as a key partner.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.