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01/09 22:52
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reflects strong financial performance with significant growth in Subscription ARR and revenue, alongside improved margins and free cash flow. Despite potential risks, management's confidence in demand and strategic positioning in cyber resilience is evident. The Q&A section highlights positive analyst sentiment, with no major concerns raised. Guidance for 2026 indicates continued growth, though EPS remains negative. Given these factors and the lack of market cap information, the stock price is likely to rise modestly, resulting in a positive sentiment rating.
Subscription ARR $1.2 billion, growing 38% year-over-year.
Net new subscription ARR $89 million, a standout for a company at our scale.
Subscription revenue $266 million, growing 54% year-over-year.
Total revenue $278 million, growing 49% year-over-year.
Subscription NRR Above 120%.
Customers with $100,000 or more in subscription ARR 2,381, growing 28% year-over-year.
Subscription ARR contribution margin Up over 1,800 basis points year-over-year.
Free cash flow Over $33 million, compared to negative $37 million in Q1 of fiscal 2025.
Non-GAAP gross margin 80.5%, compared to 75.4% in the year-ago period.
Cloud ARR $972 million, up 60%.
New Product Launches: Rubrik introduced a new identity resilience solution that integrates identity and data context for the first time in the industry, significantly improving recovery times.
Cloud Innovations: Rubrik launched code-to-cloud cyber resilience, advanced protection for cloud relational databases, and expanded capabilities for Google Cloud and Oracle Cloud Infrastructure.
Market Expansion: Rubrik's subscription ARR reached approximately $1.2 billion, growing 38% year-over-year, with significant growth in cloud ARR, which was up 60%.
Customer Growth: Customers with $100,000 or more in subscription ARR reached 2,381, growing 28% year-over-year.
Operational Efficiency: Subscription ARR contribution margin improved by over 1,800 basis points year-over-year, indicating enhanced operational efficiency.
Free Cash Flow: Rubrik reported over $33 million in free cash flow for the quarter.
Strategic Shifts: Rubrik is focusing on a dual approach of forward motion to scale current successes and lateral motion to discover new product market fit.
Market Risks: The company acknowledges that cyber breaches are inevitable despite significant investments in cyber defenses, indicating a risk in their market environment.
Competitive Pressures: Rubrik faces competition from legacy backup vendors and new-gen vendors, which could impact their market share and pricing strategies.
Regulatory Issues: The company operates in a heavily regulated industry, and changes in regulations could affect their operations and compliance costs.
Supply Chain Challenges: There are potential risks related to supply chain disruptions that could impact product delivery and operational efficiency.
Economic Factors: Economic downturns or fluctuations could affect customer spending on cybersecurity solutions, impacting revenue growth.
Innovation Risks: Failure to innovate or keep pace with rapid technological changes could lead to stagnation and loss of market position.
Customer Dependency: A significant portion of revenue comes from a small number of large customers, which poses a risk if any major customer reduces spending or switches providers.
Subscription ARR: Reached approximately $1.2 billion, growing 38% year-over-year.
Net New Subscription ARR: Reached $89 million in the first quarter.
Subscription Revenue: Reported at $266 million, growing 54% year-over-year.
Subscription NRR: Remained strong, above 120%.
Free Cash Flow: Generated over $33 million in free cash flow this quarter.
Innovation Initiatives: Continued innovation in data security and AI, including new identity resilience solutions.
Cloud Innovations: Introduced code-to-cloud cyber resilience and expanded capabilities for major cloud providers.
Long-term Initiatives: Rubrik Annapurna aims to facilitate secure and scalable GenAI applications.
Q2 Revenue Guidance: Expected revenue of $281 million to $283 million, up 37% to 38% year-over-year.
Full Year 2026 Subscription ARR Guidance: Expected in the range of $1.380 billion to $1.388 billion, reflecting a growth rate of 26% to 27%.
Full Year 2026 Total Revenue Guidance: Expected in the range of $1.179 billion to $1.189 billion, reflecting a growth rate of 33% to 34%.
Free Cash Flow Guidance: Expected free cash flow of $65 million to $75 million.
Non-GAAP EPS Guidance: Expected to be negative $1.02 to negative $0.96 for the full year.
Free Cash Flow: $33 million in Q1 2026.
Free Cash Flow Guidance: Expected free cash flow of $65 million to $75 million for the full year fiscal 2026.
Subscription ARR: Expected subscription ARR in the range of $1.380 billion to $1.388 billion for the full year fiscal 2026.
Total Revenue Guidance: Expected total revenue for the full year fiscal 2026 in the range of $1.179 billion to $1.189 billion.
The earnings call summary shows strong financial performance, with a 48% revenue increase and improved gross margins. The Q&A section highlights positive sentiment from analysts, with Rubrik's strategic focus on AI, identity, and cyber resilience being well-received. Despite some vague responses, the raised guidance and strategic partnerships, especially in AI, suggest optimism. The stock is likely to react positively in the short term, given the strong growth projections and strategic advancements, despite the lack of specific market cap data.
The earnings call reveals strong financial performance, with significant revenue and ARR growth, improved cash flow, and enhanced margins. The strategic focus on cyber resilience and AI initiatives is promising. Despite some concerns about contract duration and unclear guidance in specific areas, the overall sentiment is bolstered by optimistic guidance and a strong competitive position. The Q&A session supports this with positive analyst sentiment and strategic insights. The stock is likely to see a positive reaction over the next two weeks.
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