Rubrik, Inc. Q3 FY2025 earnings call

Key Points

• Rubrik delivered strong growth, surpassing $1 billion in subscription ARR with a 38% YOY growth and generated positive free cash flow.
• Won the cyber resilience market with a unique zero-trust architecture, enabling fast cyber recovery and combining data security posture management (DSPM) with cyber recovery.
• Highlighted customer wins in cloud backup, such as a pharmaceutical giant and an Indian multinational company, achieving cost savings and faster recovery times.
• DSPM deals nearly doubled quarter-on-quarter, with a large healthcare organization displacing an existing DSPM vendor with Rubrik's solution.
• Introduced Rubrik Annapurna to accelerate gen AI application development, integrating with AWS and planning to expand to other cloud platforms.
• Partnerships with Okta, Pure Storage, etc., to enhance cyber resilience and data protection solutions.

Rubrik's subscription revenue for the third quarter was $222 million, up 55% year-over-year. Subscription ARR surpassed $1 billion, growing 38% year-over-year. Customers with $100,000 or more in subscription ARR reached 2,085, a 32% year-over-year increase, and these customers now contribute 83% of subscription ARR.

Forward-Looking Statements

• Q4 2025 revenue expected to be $231.5M-$233.5M, up 32%-33%.
• Full fiscal year 2025 subscription ARR projected to be $1.57B-$1.61B (35% YOY growth), total revenue $860M-$862M.
• Aim for breakeven or better subscription ARR contribution margin and modestly positive free cash flow in fiscal 2026.
• Expect normalized quarterly seasonality in subscription ARR for fiscal 2026 and continued focus on profitability and free cash flow generation.

Actual results may differ materially from forward-looking statements due to risks and factors discussed in SEC filings, including market trends, competition, and operational challenges.

Q: Can you talk about customers' desire to use third-party data protection tools like Rubrik for cloud workloads versus relying on cloud provider backup solutions?

A: Rubrik has a huge opportunity in the cloud because cyber resilience is needed across all data estates. Customers seek a single policy engine and security control for cyber recovery across multiple environments, and Rubrik provides consolidated policy management and security controls.

Q: How much is DSPM contributing to the pipeline and deal cycles?

A: DSPM deals nearly doubled quarter-on-quarter, but it is still a relatively smaller part of the business and not significantly influencing overall deal cycles.

Q: How is the TAM in cybersecurity helping Rubrik's growth?

A: Rubrik transformed backup and recovery into a cyber resilience platform, expanding TAM. Half of new customers adopt enterprise edition, and nearly a third of net retention rate comes from data security product attach.

Q: Talk about the vision and evolution of Annapurna and its availability across cloud platforms.

A: Annapurna is a multiyear strategy to enable gen AI adoption securely. It will be API-first, applicable to multiple cloud platforms, and Rubrik will experiment with pricing and packaging.

Q: Discuss go-to-market partnerships and their contribution going forward.

A: Rubrik uses VARs, GSIs, and technology alliances (e.g., Okta, Pure Storage) to take its products to market, with increased engagement as customers demand cyber resilience solutions.