By Mackenzie Tatananni
Rubrik stock jumped in premarket trading Friday after the cybersecurity company posted a narrower-than-expected fiscal fourth-quarter loss and issued strong guidance.
For the quarter ended Jan. 31, Rubrik reported a loss of 18 cents a share, narrower than a loss of $1.52 a share a year earlier. Analysts polled by FactSet were expecting a loss of 39 cents. Quarterly revenue climbed 47% to $258.1 million, beating Wall Street calls for $233.1 million.
The company's fiscal 2026 outlook delivered a boost to its shares, which rose 21% to $66.73 in early trading Friday. Rubrik guided for revenue in the range of $1.145 billion to $1.161 billion, versus the $1.106 billion analysts expected. The company also forecast subscription annual recurring revenue of $1.35 billion to $1.36 billion. Analysts were anticipating $1.31 billion.
Wedbush analysts maintained an Outperform rating and raised their price target on the stock to $80 from $75 following Rubrik's "great quarter." The new price target reflects a higher multiple and "increased confidence in the Rubrik growth story," the analysts said. They noted that the earnings report featured "massive beats across the board," with strong revenue and subscription annual recurring revenue, "in what was a highly impressive first year as a public company." Rubrik began trading on the New York Stock Exchange in April 2024.
While Mizuho analysts reiterated an Outperform rating on Rubrik shares, they trimmed their price target to $75 from $82 to account for recent comparable multiple compression. In their view, Rubrik is positioned to grow at a healthy rate, with its "intense focus on protecting and operationalizing data, along with best-in-class ransomware defenses" helping it stand out from the pack.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
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March 14, 2025 07:26 ET (11:26 GMT)
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