Rubrik, Inc.(RBRK) - 2025 Q3 - Quarterly Report

Subscription and Revenue Growth - Subscription ARR as of October 31, 2024, reached $1,002,252, representing a 38$724,811 in 2023[174] - Cloud ARR as of October 31, 2024, was $768,838, showing a 69$454,866 in 2023[176] - The average subscription dollar-based net retention rate was over 120% as of October 2024, down from over 130% in 2023[180] - The number of customers with $100,000 or more in Subscription ARR increased to 2,085, a 32$221,511 thousand, a 55% increase from $143,363 thousand for the same period in 2023[224] - Total revenue for the nine months ended October 31, 2024, reached$628,444 thousand, up 39% from $452,879 thousand in the prior year[225] - Subscription ARR increased from$724.8 million as of October 31, 2023, to $1,002.3 million as of October 31, 2024, representing a 38$100,000 or more in Subscription ARR as of October 31, 2024, up from 1,581 customers a year earlier[228] - Maintenance revenue represented 2% of total revenue for the three months ended October 31, 2024, down from 5% in the same period of 2023[229] Financial Performance and Cash Flow - Free cash flow for the nine months ended October 31, 2024 was $(53.6) million, compared to$(33.2) million for the same period in 2023, reflecting a modest improvement adjusted for employer payroll taxes[186] - Net cash used in operating activities was $(35.4) million for the nine months ended October 31, 2024, compared to$(17.3) million in 2023, highlighting increased operational expenses[189] - Net cash provided by financing activities was $396.1 million for the nine months ended October 31, 2024, compared to$96.4 million in 2023, indicating a strong financing position[189] - The company reported net cash used in investing activities of $387.6 million for the nine months ended October 31, 2024, primarily due to$641.3 million in purchases of investments[263] - The company generated net cash provided by financing activities of $396.1 million for the nine months ended October 31, 2024, mainly from$815.2 million in proceeds from its IPO[265] - As of October 31, 2024, the company had cash, cash equivalents, and short-term investments totaling $632.0 million[255] - The company expects to continue incurring operating losses, with an accumulated deficit of$(2,722.4) million as of October 31, 2024[255] Expenses and Cost Management - Total operating expenses for the three months ended October 31, 2024, were $304,819 thousand, compared to$197,175 thousand in the same period of 2023[224] - Research and development expenses are expected to increase as the company continues to innovate its platform and product functionality[215] - Sales and marketing expenses are projected to rise as the company expands its sales force and marketing efforts in new markets[217] - General and administrative expenses are expected to increase due to the costs associated with operating as a public company, although they are anticipated to decrease as a percentage of revenue over the long term[218] - Research and development expenses for the three months ended October 31, 2024, increased to $80,050,000, a 56$51,372,000 in the same period of 2023[238] - Sales and marketing expenses for the three months ended October 31, 2024, were $158,907,000, a 31$120,847,000 in the same period of 2023[240] - General and administrative expenses for the three months ended October 31, 2024, increased to $65,862,000, a 164$24,956,000 in the same period of 2023[241] Strategic Initiatives and Market Position - Rubrik transitioned customers from legacy CDM capabilities to RSC, which now represents a majority of total revenue as of the end of fiscal 2024[160] - RSC is primarily adopted as a cloud-native, fully managed SaaS solution, with a specialized version for U.S. public sector organizations called RSC-Government[159] - The company utilizes a land and expand strategy, focusing on acquiring new customers and expanding within existing ones[165] - The transition to subscription pricing models has been a significant part of the company's business evolution since fiscal 2020[158] - The company expects contributions to growth from transitioning existing maintenance customers to subscription editions to subside in fiscal 2026[174] - The company expects the transition of existing maintenance customers to subscription offerings to be largely completed by the end of fiscal 2026[229] - The company anticipates that maintenance revenue will decrease as adoption of RSC increases, affecting overall revenue composition[202] Legal and Compliance Matters - The company is involved in various legal proceedings but does not believe any current litigation will have a material adverse effect on its business[284] - The Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of the company's disclosure controls and procedures, concluding they were effective at the reasonable assurance level[280] - There were no changes in internal control over financial reporting that materially affected the company's reporting during the period covered[281] - The management believes that the company's controls provide reasonable assurance but acknowledges inherent limitations in detecting all errors and fraud[282] Currency and Tax Considerations - The company’s effective tax rate may fluctuate significantly based on earnings in different countries, which could impact overall financial performance[247] - The reporting currency for the company is the U.S. dollar, while foreign subsidiaries operate in their respective local currencies, exposing the company to foreign currency exchange rate fluctuations[278] - The company has not entered into any hedging arrangements for foreign currency risk, but may consider doing so in the future[278] - A 10% increase or decrease in the relative value of the U.S. dollar is not expected to have a material impact on the company's results of operations[278]