Rubrik, Inc.(RBRK) - 2026 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Subscription ARR reached approximately $1,200 million, growing 38% year over year [6][30] - Subscription revenue was$ 266 million, growing 54% year over year [6][32] - Free cash flow was over $33 million, a significant improvement from negative$ 37 million in the same quarter last year [7][36] - Non-GAAP gross margin was 80.5%, up from 75.4% year over year [33] Business Line Data and Key Metrics Changes - Net new subscription ARR reached $89 million in the first quarter [6][30] - Subscription NRR remained strong above 120% [6][32] - Customers with$ 100k or more in subscription ARR reached 2,381, growing 28% year over year [6][32] Market Data and Key Metrics Changes - Revenue from the Americas grew 51% to $203 million, while revenue from outside the Americas grew 43% to$ 75 million [33] - Cloud ARR reached $972 million, up 60% [30] Company Strategy and Development Direction - The company focuses on cyber resilience as a top cybersecurity priority, with a unique platform that combines data and identity security [9][10] - Rubrik aims to innovate continuously across data security and AI, leveraging a portfolio approach to manage innovations [11][14] - The company is expanding its offerings in identity resilience, which is seen as a significant growth opportunity [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the cyber resilience market and the demand for their differentiated offerings [37][76] - The company raised its guidance for the year, anticipating strong subscription ARR growth [39][40] Other Important Information - The company has a strong cash position with$ 762 million in cash and equivalents and $323 million in debt [36] - The company is investing in R&D to drive innovation in data security and AI [37] Q&A Session Summary Question: How long is the runway for the shift from legacy to next-gen solutions? - Management indicated that the shift is expanding the total addressable market (TAM) due to the rise in identity-based attacks and the need for comprehensive cyber resilience [46][48] Question: What is happening to sales cycles and awareness of Rubrik's capabilities? - Management noted that the current market environment is pushing enterprises to modernize their infrastructure, which is benefiting Rubrik's offerings [54][56] Question: How is the demand environment characterized? - Management stated that cyber resilience is a top priority for CIOs and CSOs, and they are not seeing any change in demand [75][76] Question: What is the size of the identity resilience opportunity? - Management emphasized that identity security is a critical component of their strategy, and they are seeing great momentum in this area [63][65] Question: What are the technical advantages Rubrik brings to identity security? - Management highlighted the unique ability to combine identity and data security, enabling faster recovery times and preventing malware reintroduction [114][115]