Rubrik, Inc. Q4 FY2025 earnings call

• Bipul Sinha highlighted that the fourth quarter was an exceptional finish, with the company exceeding top-line and profitability guided metrics. Subscription ARR grew 39% y/y to $1.093 billion, net new subscription ARR was a record $90M in Q4. - Companies are undergoing technology transformations for AI era, needing modern data security strategies. Rubrik's unique platform addresses data security across cloud, SaaS, and enterprise. - Customer wins included a European insurance company for cloud workloads, a Fortune 50 organization for M365 protection, and a US conglomerate for multiple solutions. - Innovations such as orchestrated Active Directory forest recovery, DSPM integration into RSC, and unstructured data protection were highlighted as key operational highlights.

Rubrik, Inc. reported strong financial performance in the fourth quarter and fiscal year 2025. Subscription ARR reached $1.093 billion, growing 39% year over year. Subscription revenue was $244 million, up 54% year over year. Net new subscription ARR in the fourth quarter was over $90 million, a record. Customers with $100k or more in subscription ARR reached 2,246, growing 29% year over year, contributing 84% of subscription ARR. Customers with $1 million or more in subscription ARR reached 162, growing 64% year over year. Subscription NRR remained strong above 120%. Total revenue for the quarter was $258 million, up 47% year over year. Geographically, revenue from the Americas grew 48% to $185 million, and revenue from outside the Americas grew 47% to $73 million.

• For fiscal 2026, Rubrik expects subscription ARR in the range of $1.35 billion to $1.36 billion, representing a ~24% year-over-year growth. Total revenue is expected to be in the range of $1.145 billion to $1.161 billion, implying ~30% growth. - Q1 2026 revenue is guided to be $259 million to $261 million, up 38% to 39%. - Non-GAAP subscription ARR contribution margins are expected to be between 4% and 5% in Q1 2026 and between 4.5% and 5.5% for the full fiscal year 2026. - Free cash flow is expected to be $45 million to $65 million for fiscal 2026.

Forward-looking statements are subject to risks, and actual results may differ materially. Factors affecting performance and financial results are discussed in detail with the SEC filings. Rubrik assumes no obligation to update any forward-looking statements.

Q: Saket Kalia of Barclays asked about the TAM for data protection as customers move to cloud and Gen AI.

A: Bipul Sinha responded that Rubrik has transformed the traditional data protection market by creating a new platform for cyber resilience, and the TAM is expanding as customers need cyber resilience for cloud and Gen AI.

Q: Kash Rangan of Goldman Sachs asked about new battles in cyber resilience and customer spending priorities.

A: Bipul Sinha stated that Rubrik focuses on cyber resilience, doubling down on data security and identity-related threats, and customers are investing in cyber resilience regardless of market cycles.

Q: Fatima Boolani of Citigroup asked about subscription ARR contribution margin improvement.

A: Kiran Chaudhry responded that drivers include sales productivity, scale leverage, and larger deal sizes with customers having $100k+ ARR contributing more to ARR.

Q: John DiFucci of Guggenheim Securities asked about cash flow and AR accounts.

A: Kiran Chaudhry explained that cash flow is driven by top-line scale, margin leverage, and timing of collections, with some compression in billings duration factored into guidance.

Q: Andrew Nowinski of Wells Fargo asked about divergence between revenue growth and ARR.

A: Kiran Chaudhry noted that revenue growth is catching up with ARR as the company progresses through cloud transformation, with nonrecurring revenue from cloud transformation providing tailwinds.

Q: Brad Zelnick of Deutsche Bank asked about moving to twelve-month comp plans.

A: Kiran Chaudhry and Bipul Sinha explained that transitioning to annual comp plans aligns with how the business is run and is common for at-scale software companies.

Q: Eric Heath of KeyBanc Capital Markets asked about DSPM integration.

A: Bipul Sinha said Rubrik's DSPM integration into RSC provides a single platform for data security, accelerating adoption.

Q: Gregg Moskowitz of Mizuho asked about DORA impact.

A: Bipul Sinha stated that Rubrik's offerings help customers pass DORA audits by providing cyber resilience.

Q: Joel Fishbein of Truist asked about sales capacity and channel.

A: Bipul Sinha said Rubrik has the right sales capacity and channel partners, doubling down on existing partners.

Q: Keith Hackman of BMO asked about net new ARR guidance.

A: Kiran Chaudhry explained that factors like maintenance to subscription transition and being early in the year contribute to the guidance.

Q: James Fish of Piper Sandler asked about DSPM competition and penetration.

A: Bipul Sinha said DSPM is an early market and Rubrik's platform combines DSPM with cyber recovery for complete cyber resiliency.

Q: Shrenik Kothari of Oppenheimer asked about Microsoft partnership and AD recovery.

A: Bipul Sinha discussed the strong partnership with Microsoft and the success of AD forest recovery.

Q: Param Singh of Oppenheimer asked about greenfield vs brownfield ARR and Cohesity/Veritas.

A: Bipul Sinha said Rubrik replaces all technologies, including legacy and new-gen vendors, and is early in Annapurna development.