Rubrik Q1 2026 Earnings Report

Rubrik EPS Results

• Actual EPS: -$0.15
• Consensus EPS: -$0.32
• Beat/Miss: Beat by +$0.17
• One Year Ago EPS: -$1.58

Rubrik Revenue Results

• Actual Revenue: $278.48 million
• Expected Revenue: $260.39 million
• Beat/Miss: Beat by +$18.09 million
• YoY Revenue Growth: +48.70%

Rubrik Announcement Details

• Quarter: Q1 2026
• Date: 6/5/2025
• Time: After Market Closes
• Conference Call Date: Thursday, June 5, 2025
• Conference Call Time: 5:00PM ET

Rubrik (NYSE:RBRK) provides data security solutions to individuals and businesses worldwide. The company offers enterprise data protection, unstructured data protection, cloud data protection, and SaaS data protection solutions; data threat analytics; data security posture; and cyber recovery solutions. It serves financial, retail, trade, transportation, energy, industrial, healthcare and life science, education, technology, media, communications, and public sectors. Rubrik, Inc. was formerly known as Scaledata, Inc. and changed its name to Rubrik, Inc. in October 2014. The company was incorporated in 2013 and is based in Palo Alto, California.

Rubrik Q1 2026 Earnings Call Transcript

Key Takeaways

• Exceeded guided metrics: Q1 subscription ARR hit $1.2 billion, up 38% YoY with net new subscription ARR of $89 million and subscription revenue of $266 million, up 54% YoY.
• Subscription net retention stayed above 120%, driven by Rubrik Security Cloud adoption and 28% YoY growth in customers with >$100 K ARR.
• Profitability and cash flow strengthened, with subscription ARR contribution margin up over 1,800 basis points YoY and $33 million of free cash flow generated in Q1.
• Raised full-year guidance to $1.38–$1.388 billion in subscription ARR (26–27% growth) and $1.179–$1.189 billion in total revenue (33–34% growth), targeting ~6% contribution margin.
• Investing in new growth vectors—identity resilience and GenAI with Rubrik Anapurna—leveraging the preemptive recovery engine to expand the cyber resilience platform.

Presentation

[Operator]

Good afternoon, ladies and gentlemen, and welcome to the Rubrik First Quarter Fiscal Year twenty twenty six Results Conference Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. This call is being recorded on 06/05/2025. I would now like to turn the conference over to Melissa Franchi, Vice President of Investor Relations. Please go ahead.

[Melissa Franchi, VP & Head of IR at Rubrik]

Hello, everyone. Welcome to Rubrik's first quarter fiscal year twenty twenty six financial results conference call. On the call with me today are Bippel Sinha, CEO, Chairman and Co Founder of Rubrik and Kiran Chaudhry, Chief Financial Officer. Our earnings press release was issued today after the market closed and may be downloaded from the Investor Relations page at www.ir.rubric.com. Also on this page, you'll be able to find a slide deck with financial highlights that, along with our earnings release, includes a reconciliation of GAAP to non GAAP financial results.

[Melissa Franchi, VP & Head of IR at Rubrik]

These measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP. During this call, we will make forward looking statements, including statements regarding our financial outlook for the second quarter and the full fiscal year 2026, our expectations regarding market trends, our market position, opportunities, including with respect to generative AI, growth strategy, product initiatives and expectations regarding those initiatives and our go to market motion. These statements are only predictions that are based on what we believe today and actual results may differ materially. These forward looking statements are subject to risks and other factors that could affect our performance and financial results, which we discuss in detail in our filings with the SEC. Rubrik assumes no obligation to update any forward looking statements we may make on today's call. With that, I'll hand the call over to Bippel.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

Thank you, Melissa. I want to start by thanking everyone for joining us today. Our first quarter results were excellent. This quarter, we once again exceeded all guided metrics across top line and profitability. Here are five key numbers.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

First, subscription ARR reached approximately 1,200,000,000.0 growing 38% year over year. Net new subscription ARR reached 89,000,000 in the first quarter, a standout for a company at our scale. Second, our subscription revenue was $266,000,000 growing 54% year over year. Third, our subscription NRR remained strong yet again above 120%. Fourth, customers with 100 ks or more in subscription ARR reached $2,381 growing 28% year over year.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

Finally, on profitability, we once again made material improvements in subscription ARR contribution margin, up over 1,800 basis points year over year. On cash generation, we are very happy to report we had over $33,000,000 in free cash flow this quarter. This combination of top line growth and cash flow margin at our scale is rare. These outcomes are a result of a very deliberate strategy. First, we have a very differentiated product and comprehensive offering for cyber resilience.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

Second, we offer a true platform that enables multi product leverage for our customers. Third, Rubrik has a unique innovation engine that delivers a steady stream of new products and solutions that lead and define the future of cybersecurity. And finally, we have a culture of long term thinking where we continuously conceive yet unproven bold ideas to unlock new market. As a result, we remain confident about our opportunity and we have raised our guidance for the year. Let me start by giving you the broader context on our market opportunity.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

Cyber resilience is the top cybersecurity priority. My conversations with leading CSOs and CIOs around the world point to a growing recognition that cyber breaches are inevitable, in spite of significant investments they make in cyber defenses. At the same time, enterprises are looking to replatform and modernize their infrastructure in preparation for AI. In this increasingly complex environment, customers are turning to Rubrik for uniform and consistent data policy controls as well as rapid accurate recovery from cyber attacks. From our inception, Rubrik was designed to help customers achieve the fastest cyber recovery time.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

At the center of our unique architecture is the Rubrik preemptive recovery engine. Our natively integrated platform continuously and automatically scans all protected data and identities across a customer's entire IT ecosystem to pre calculate clean recovery points. And our ability to pre compute metadata unlocks the necessary data context and tooling needed to recover quickly from a cyber attack. Legacy backup as well as new gen backup vendors can't match this proactive capability because their solutions weren't natively built for it, and their capabilities are often bolted on from acquisitions or from third party tools. For these reasons, we win the vast majority of deals in head to head competition.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

Now let me talk about innovation. We continue to innovate across data security and AI vectors as we tackle more and more complex problems for our customers. Rubrik employs a unique portfolio approach to s curves, managing innovations at different stages to maintain maximal momentum while preparing for what's next. Let me expand on that further. We live in an age of technology acceleration.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

Microsoft took twenty years to become a household name. Facebook, two years. And chat GPT, just three months. Rapid technology changes means businesses must reorient and evolve constantly. The key to building an enduring institution in this technology era is to continuously layer concurrent s curves.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

To achieve this, we use the combination of forward motion, which focuses on scaling current successes such as our cyber resilient data protection business, as well as Lateral Motion, which focuses on a portfolio of new initiatives to unlock share of curves. Our Forward Motion team is expanding our cyber resilient data protection solution across new applications and workloads while exploring new routes to market, accelerating distribution network, serving new customers, and expanding our value proposition within our customer base. But you can't just rely on forward motion to achieve sustained success. Failing to innovate could lead to eventual stagnation. In fact, we deploy a specialized team as lateral motion to discover new product market set and launch innovative initiatives to unlock the next s curves.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

We already have a track record here as we have successfully built our m three sixty five protection solution from a scratch to a scale business. We are using the same approach to introduce new identity resilient solution that brings identity and data context together for the first time in the industry. Rubrik's innovation engine is powered by our unique platform architecture, one that combines data and metadata across enterprise, cloud, and SaaS applications, as well as identity providers. The Ruby platform uniquely brings data security and cyber recovery together to deliver comprehensive cyber resilience for both data and identity. This makes us a true platform company.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

Let me explain further. Rubrik manages mission critical business data as the common unit of currency across the whole organization. Our platform strategy allows us to innovate faster and deliver effective solutions to critical challenges at the epicenter of data security and AI. All our solutions leverage the same underlying preemptive recovery engine to deliver risk and remediation solutions across data and identity. In fact, our customers realize more value from the Ruby platform as they adopt more Ruby products and solutions.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

This is because our platform gets smarter as we cover more of our customers' data and identity landscape. Let me detail some of the opportunities and wins across our initiatives at varying scale. If you recall, our forward motion is propelling our cyber resilient data protection business from scale to super scale. As companies shift deeper into cloud and GenAI, they choose Rubrik to deliver comprehensive cyber resilience and quicker cyber recovery times across clouds. After many examples, let me give you two specific wins from this quarter.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

The first, a major US pharmacy solutions company selected Rubrik as their cyber resilience partner for their cloud transformation. We not only replaced a long time legacy vendor, but also outcompeted a new gen vendor. Key differentiators included Rubik's clean and rapid cyber recovery, hybrid cloud scalability, and the simplicity of our Rubik's security cloud or RSC platform. The customer adopted RSC enterprise edition, unstructured data protection, and SaaS data protection for m three sixty five. This customer also combined our DSPM and identity recovery solutions for complete cyber resilience while being a design partner for our Anapurna AI product.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

And the second, a large European insurer chose Rubrik, RSC Enterprise Edition with unstructured data protection to protect critical structured and unstructured data across cloud and enterprise environments. Rubrik was chosen over competitors for our ability to meet and exceed board level cyber recovery time objectives for critical business services. This customer also noted our simplicity, cost effectiveness and superior performance in securing significant cloud workloads. Let me shift gears and talk about four key cloud innovations that deliver differentiated product. First, we introduced Code to Cloud Cyber Resilience.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

As a result, we can now protect from the first line of code to the full stack of applications in production. Second, we created new purpose built technology for advanced protection of cloud relational databases, starting with AWS RDS. Third, we expanded our cyber resilience capabilities for Google Cloud. And finally, we also introduced Rubrik for Oracle Cloud Infrastructure, essentially strengthening critical coverage of all four major hyperscalers. Ultimately, our differentiation in cloud protection is built on our assume breach approach.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

To deliver this, we combine DSPM and cyber recovery natively on our RSC platform, which is powered by our native data threat and preemptive recovery engines to achieve complete cyber resilience. No one else does this. Now let me highlight a few customer wins with cloud and SaaS protection. This quarter, a Fortune 500 financial services company expanded its Rubrik deployment by adding cloud protection enterprise edition for its complete Azure environment. Our POC showed not only significantly faster recovery time, but also a 25% saving in cloud cost over three years compared to their existing cloud native backup solution.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

This customer also added identity recovery for Entra ID enhancing their m c 65 protection for more than 10,000 users. A global quantum computing company chose Rubrik this quarter to safeguard their vital SaaS data. Resilience and availability are crucial in their industry. Their legacy backup provider posed too many security vulnerabilities and was ill equipped to secure cloud workloads at speed and scale. In under two months, they transitioned to Rubrik as their unified platform, now securing critical workloads such as m three sixty five, Jira, and Salesforce.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

As I mentioned before, we are leveraging the lateral motion approach to scale our data security posture management or DSPM and identity resilience solutions. Together, these solutions help customers achieve cyber resilience by bringing identity and data context together with cyber recovery to solve cyber security challenges before, during, and after an attack. Let me discuss our opportunity in identity resilience. Active Directory and Entra ID are the backbones of identity for companies worldwide. However, their ubiquity makes them prime targets for attacks.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

Attackers go after identity infrastructure because it gives them access to all the critical data. And when identity systems are compromised, every subsequent recovery effort becomes exponentially more complex. We see a huge opportunity in securing identity. Our newly released identity recovery solution has seen notable momentum due to our unique ability to orchestrate hybrid cloud recovery across active directory and enter ID, all while avoiding malware reintroduction. This transforms identity recovery times from weeks to under an hour.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

I already mentioned a few customer wins for identity recovery, but let me add a few more. A major US hospital network added Rubrik Identity Recovery in Q1, choosing Rubrik over a standalone identity recovery competitor. This represents the customer's third expansion since their initial purchase in August of last year. Additionally, a large US state county expanded with Rubrik to bolster its cyber resilience after a significant ransomware attack impacted a nearby county. This customer added Rubrik AD Forest Recovery and added RSC Enterprise Edition to ensure minimal disruption in the face of an inevitable cyber attack.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

Lastly, I'll spend a minute talking about some of our longer term initiatives such as Rubrik Anapurna. Rubrik Anapurna is designed to help break through the barriers preventing GenAI applications from broad based enterprise deployment. This solution enables secure and scalable GenAI by leveraging Rubrik's unique ability to extract, manage, and secure business data, the most important real estate in GenAI. Anapurna now integrates with Google agent space facilitating secure GenAI deployment on Google Cloud. We are in the early phases of optimizing product market fit for Rubrik and Aparna.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

We plan to add more capabilities and investments to help organizations deliver secure GenAI applications faster. As a reminder, this is a multiyear initiative to bring our GenAI solutions from zero to one and then to a scale. Just as our successes in cyber resilience was built through the years of dedicated effort and calculated market risk. In closing, I would like to share my personal gratitude. First, thank you to my fellow Rubrikans.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

Your unwavering customer focus and disciplined execution have given us an incredibly strong start to the year. As a result, we continue to win the cyber resilience market, and I believe our opportunity is bigger than ever. Also, a big thank you to our customers and partners. Your trust in us to secure your data and business, which is supposed to continue to define the frontiers of cyber security. And lastly, thank you to you, our shareholders, for your continued support and trust.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

We are just getting started. The best is yet to come. With that, I am pleased to pass it over to our Chief Financial Officer, Kiran Chaudhry.

[Kiran Choudary, Chief Financial Officer at Rubrik]

Thank you, Bipul. Good afternoon everyone and thank you for joining us today. Q1 was a strong start to our fiscal year, demonstrating our continued leadership in the growing market for cyber resilience. Strong market drivers, our competitive positioning, and a unique land and expand strategy fueled another quarter of solid top line growth at scale. We also saw strong and continued improvement in profitability.

[Kiran Choudary, Chief Financial Officer at Rubrik]

We are pleased to have exceeded all guided metrics in Q1 and we are raising our outlook. Let me start by briefly recapping our first quarter fiscal twenty twenty six financial results and key operating metrics and then I'll provide guidance for the second quarter and full year fiscal twenty twenty six. All comparisons unless otherwise noted are on a year over year basis. We are very pleased to have ended Q1 with subscription ARR of $1,180,000,000 growing 38%. We added $89,000,000 in net new subscription ARR.

[Kiran Choudary, Chief Financial Officer at Rubrik]

We continue to drive adoption of our Rubrik Security Cloud, which resulted in $972,000,000 of cloud ARR, up 60%. Our differentiated land and expand model benefits from multiple avenues to gain new customers and grow our footprint after the initial contract. Expansion occurs through increased data and existing applications, securing more applications or adding more security functionality. As a result, we continue to see a strong subscription net retention rate, which remained over 120% in the first quarter. All vectors of expansion are healthy contributors to our NRR, highlighting the meaningful runway we have to more deeply penetrate our customer base.

[Kiran Choudary, Chief Financial Officer at Rubrik]

Adoption of additional security functionality contributed slightly more than 30% of our subscription net retention rate in the quarter. We ended the first quarter with 2,381 customers with subscription ARR of $100,000 or more, up 28%. These larger customers now contribute 85% of our subscription ARR, up from 81% in the year ago period as we become an increasingly strategic partner to our enterprise customers. For our first quarter, subscription revenue was $266,000,000 up 54%. Total revenue, $278,000,000, up 49%.

[Kiran Choudary, Chief Financial Officer at Rubrik]

Revenue in Q1 benefited from our strong ARR growth and tailwinds from our cloud transformation journey. We also saw higher nonrecurring revenue, which was accounted for as material rights related to our cloud transformation. This contributed approximately seven percentage points to revenue growth this quarter, which was a few percentage points above our expectation. Turning to the geographic mix of revenue, revenue from The Americas grew 51% to $2.00 $3,000,000 Revenue from outside The Americas grew 43% to $75,000,000 Before turning to gross margins, expenses and profitability, I would like to note that I'll be discussing non GAAP results going forward. Our non GAAP gross margin was 80.5% in the first quarter compared to 75.4 in the year ago period.

[Kiran Choudary, Chief Financial Officer at Rubrik]

Our gross margin benefited from the revenue outperformance, including higher non recurring revenue and the improved efficiency of our customer support organization. We anticipate total gross margin to remain within our long term target of 75% to 80% in fiscal twenty twenty six. As a reminder, we look at subscription ARR contribution margin as a key measure of operating leverage. We believe the improvement in our subscription ARR contribution margin demonstrates our ability to drive operating leverage and profitability at scale. Subscription ARR contribution margin was positive 8% in the last twelve months ended April 30 compared to negative 11% in the year ago period, an improvement of over 1,800 basis points.

[Kiran Choudary, Chief Financial Officer at Rubrik]

When normalizing for the $23,000,000 in employer payroll taxes associated with the IPO in the prior period, the improvement was over 1,500 basis points. The improvement in subscription ARR contribution margin was driven by higher sales, the benefits of scale and improving efficiencies and management of costs across the business. Free cash flow was positive $33,000,000 compared to negative $37,000,000 in the first quarter of fiscal twenty twenty five or negative $16,000,000 when adjusting for the $21,000,000 in employer payroll taxes associated with our IPO. This increase was driven by higher sales and improved operating leverage offset by an increasing mix of annual and monthly payment terms and shorter contract terms related to the year ago period. Turning to our balance sheet, we ended the quarter in a strong cash position with $762,000,000 in cash, cash equivalents, restricted cash and marketable securities and $323,000,000 in debt.

[Kiran Choudary, Chief Financial Officer at Rubrik]

Let me now provide some context on our outlook for fiscal twenty twenty six. We remain confident about the strength of the cyber resilience market and demand for our differentiated offerings. We believe these drivers alongside our strong and consistent execution will deliver strong subscription ARR growth ahead. In terms of operating investments, we'll continue to invest in R and D to drive innovation in the large and growing markets we operate in across data, security and AI. We'll also continue to make investments in go to market where we see the most compelling ROI across select regions and verticals and to find product market fit and scale our new innovations.

[Kiran Choudary, Chief Financial Officer at Rubrik]

Let me discuss our current outlook on quarterly seasonality. After our strong Q1, we anticipate that the first half of the fiscal year will contribute approximately 46% of the total net new subscription ARR with the remaining approximately 54% expected in the second half. In addition, subscription ARR contribution margin has some seasonality due to the timing of net new subscription ARR and operating expenses each quarter. Based on our current net new ARR linearity and investment plans, we continue to anticipate that subscription contribution margins will be the seasonally lowest in Q3 before moving higher in Q4. Please see additional modeling points for fiscal twenty twenty six on Slide 31 of our investor presentation, which can be found on our Investor Relations website.

[Kiran Choudary, Chief Financial Officer at Rubrik]

Now turning to our guidance for the second quarter and full year fiscal twenty twenty six. In Q2, we expect revenue of $281,000,000 to $283,000,000 up 37% to 38%. We expect non GAAP subscription ARR contribution margins between 4.55.5%. We expect non GAAP earnings per share of negative $0.35 to negative $0.33 based on approximately 196,000,000 weighted average shares outstanding. For the full year fiscal twenty twenty six, we expect subscription ARR in the range of $1,380,000,000 to $1,388,000,000 reflecting a year over year growth rate of 26% to 27%.

[Kiran Choudary, Chief Financial Officer at Rubrik]

We expect total revenue for the full year fiscal twenty twenty six in the range of $1,179,000,000 to $1,189,000,000 dollars reflecting a year over year growth rate of 33% to 34%. We expect non GAAP subscription ARR contribution margins of approximately 6%. We expect non GAAP earnings per share of negative $1.2 to negative 0 9 6 dollars based on approximately 198,000,000 weighted average shares outstanding for the full year. We expect free cash flow of $65,000,000 to $75,000,000 In closing, we are pleased with a strong start to our second year as a public company and a higher outlook for fiscal twenty twenty six. We remain confident in our ability to deliver efficient and durable growth as a market leader in cyber resilience.

[Kiran Choudary, Chief Financial Officer at Rubrik]

With that, we'd like to open up the call for any questions.

[Operator]

Ladies and gentlemen, we will now begin the question and answer session. Session. Your first question comes from the line of Saket Kalia from Barclays. Please go ahead.

[Saket Kalia, Managing Director at Barclays Capital]

Okay, great. Hey guys, thanks for taking my question here. A nice start to the year.

[Operator]

You.

[Saket Kalia, Managing Director at Barclays Capital]

Bipul, maybe I'll make the one question for you. I think we all think about the share shift that's happening in this market from legacy to next gen, which is clearly benefiting Rubrik. But I'm curious, how long of a runway do you think that has? And particularly with some of the the points that you're making on identity, do you think the move to cyber resilience is expanding this TAM at all that's available for for conversion? Does that make sense?

[Kiran Choudary, Chief Financial Officer at Rubrik]

Absolutely.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

So, Saket, if you take a step back, Rubrik is a two platform company. We actually took on legacy backup and recovery and transform that into a data security platform to deliver cyber resilience. And this Ruby security cloud has built in preemptive recovery engine that takes the cyber recovery time from weeks and and months to hours. And that is what is making us win. We are the only vendor that provides comprehensive cyber resilience across data and identity, both across risk and remediation.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

And because of our unique offering and platform approach, we are winning customers, and we are winning vast majority of the deal in head to head competition. And this new identity resilience angle is expanding our TAM because not only data risk comes from ransomware and and other data sensitivity, but the identity stealing and identity based attacks are on the rise in a in a very significant way. And we are giving our customer a peace of mind against those attacks. And that's what is helping us to deliver end to end cyber resilience, which is very unique in the marketplace, and we are the only ones doing it. To give you an example, a world renowned cancer medical center replaced their legacy backup vendor, and we also outcompeted an associated new gen vendor.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

And they chose RSC enterprise edition because of our demonstrated ability to not only deliver the fastest cyber recovery at scale, but also give them the complete risk information. So this is an example of why customers are choosing us, how we are displacing legacy vendors and expanding the market and TAM by combining data and identity.

[Saket Kalia, Managing Director at Barclays Capital]

Very helpful. Thanks, guys.

[Melissa Franchi, VP & Head of IR at Rubrik]

Thank you. Next question?

[Operator]

Your next question is from the line of Kash Rangan from Goldman Sachs. Please ask your question.

[Kash Rangan, Managing Director at Goldman Sachs]

Yes. Thank you very much and congratulations to the Rubrik team on a spectacular start to the fiscal year. A Bipple one for you. As you continue to innovate, add functionality at a pretty rapid pace and the market continues to be receptive and that it's not just replacement TAM, but replacement time and some more. What is the the what is happening to sales cycles, the broader awareness of what Rubrik can do, replacement cycles of older legacy technology.

[Kash Rangan, Managing Director at Goldman Sachs]

Could could we be at a point where we're at the at the front end of what could be an s curve of adoption, and we maybe are at the point where what used to be obscure in the back orders is now all of a sudden more front and center. Maybe I'm overstating the case, but I'm sure you have a strong view on that. Thank you.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

Absolutely, Kash. If you're if you think about the current market environment we are in, which is generative AI and productivity gains, Generative AI is pushing all enterprise and governments to really replatform and modernize their infrastructure to take care of to take advantage of generative AI opportunity. But generative AI is all about data and understanding data, integrity in the data, and security in the data. And that's Rubrik's business. We have paid our whole company on data security.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

That's what we built, a data security platform by transforming legacy backup and recovery. So we are definitely believe that we are on the front end of a very long, large, secular trend around data, security, and AI. And as our customers transform and and adopt more cloud as they use GenAI, we are actually helping them have confidence and peace of mind that their services will be up. They can actually feed safe data into their Jena application. Just to give you a sense of what is happening with replacement, a very large, Japanese industrial company that had multiple native cloud backup tools.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

They replaced all of them with Rubrik security cloud protection to safeguard critical AWS, Azure, plus Oracle workloads. And Ruby was selected over a new gen vendors because of our unique ability to mitigate cyber threats and and deliver cyber resilience, cyber recovery at lower cost. And we are saving cloud cost. So in some ways, we are delivering double impact. Cyber resilience plus cost saving and making our customers secure and giving them the ability to take secure data and feed into GenAI.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

We're giving them the ability to constantly do cloud transformation. And these are some of the trends that are propelling us.

[Kash Rangan, Managing Director at Goldman Sachs]

Fantastic. Thank you so much.

[Melissa Franchi, VP & Head of IR at Rubrik]

Thank you, Kash. Next question?

[Operator]

Your next question is from the line of Andrew Nowinski from Wells Fargo. Please go ahead.

[Andrew Nowinski, Analyst at Wells Fargo]

Okay. Thanks, Melissa, for the question. Great quarter. I wanted to ask another question around identity resilience that you introduced at RSA. I think it's a really interesting product.

[Andrew Nowinski, Analyst at Wells Fargo]

And it really could be a game changer because no one else is combining identity with cyber resilience. So I'm wondering, I guess, first, is the integration with Laminar complete? And then would this new capability allow customers to replace any sort of point products they may be using with other identity security vendors?

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

Thank you for for this question. Let me give you a broader sense of our strategy and what we are doing. As I said before, Rubrik pegged its future on data security. But the source of data risk is both from the intrinsic data sensitivity plus the identity interaction on the data. And we have this strong point of view that to secure data, you need to understand data and and understand data risk as well as understand identity risk on data.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

The first step of this strategy was to acquire DSPM laminar product that we have fully now integrated on the Rubik platform. In fact, our DSPM ARR was up over 300% year over year this quarter. But that's not the point. The point is cyber resiliency requires both data resilience and identity resilience together. Together on a in a single platform delivered in a single single way because you need to understand what data you have, what is the sensitivity of the data, who has access to the data, and who is doing what to your data.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

And by combining identity security with data context and data security, in essentially, identity plus DFTM together, we are forging a whole new world of of data security, which is complete and comprehensive. And that is our opportunity to replace point products across DSPM or purely identity recovery because these two separate products don't create as much value when you bring it identity and data altogether. And that's where we are seeing great momentum in identity recovery. Just to give you an example, a very large health care org experienced an outage with Entra ID. And it took them a week to recover with the competing solutions that they had, and they brought in Rubrik to deliver faster cyber recovery and increase their resilience posture.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

And if you think about the identity and data combination I talked about, European financial institution chose Rubrik to put to detect and mitigate exfiltration risk and which is around data, and that allowed them to to be in compliance with Dora. So we have a number of significant tailwinds both in in and around data and identity, and we are taking the unique approach of combining these two into a singular strategy, similar platform, similar product. And, again, we always take a very long term view of these things. Again, we are experimenting, iterating, figuring out how we package, how we sell, which solutions work with what, and we'll update you as we evolve our strategy, but we are definitely seeing great traction in this space.

[Andrew Nowinski, Analyst at Wells Fargo]

That's very helpful. Thank you.

[Melissa Franchi, VP & Head of IR at Rubrik]

Thank you, Andy. Next question.

[Operator]

Your next question is from the line of John DiFucci from Guggenheim Securities. Please ask your question.

[John DiFucci, Senior Managing Director at Guggenheim Partners]

Thank you. My question is more of sort of a macro question. You're near the end of the reporting companies for this quarter. And we've generally seen some sort of suppressive effects of an uncertain macro backdrop, especially in security. Though I think of one other exception, just one.

[John DiFucci, Senior Managing Director at Guggenheim Partners]

It has to do with identity, which you're talking about. It was CyberArk. But this is the suppressive effects don't show up in your numbers at all. So first, guess, how would you characterize the demand environment in general and that's beyond Rubrik? And how are you able to execute against that environment?

[John DiFucci, Senior Managing Director at Guggenheim Partners]

And if you can sort of talk about product, go to market prowess, and then the general demand in in your end markets? Thank you.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

Thanks, John. That's that's a insightful question. Let me give you my my context or my understanding of where things are. Rubrik is creating a new future for cybersecurity. The last thirty years of cybersecurity has been buying 80 to hundred different tools around prevention and detection of attack.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

And everybody had has indigestion right now with different tools, different vendors, in some cases, hundreds of vendors. And what to pick, what not to pick is is like a whack a mole that you have a new threat and you buy a new tool to prevent and detect. We created this cyber resilience market. And our vision is why prevention and detection is important, you cannot prevent the unpreventable. You need to have a recovery and resilience strategy.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

And we created a purpose built platform around cyber resilience across data identity, risk, and remediation. And because of this comprehensive nature of our platform and what we do is not a optional thing. It's not one of the five tools that they are buying and you are increasing the posture by by 1%, two %. We are a quantum shift in terms of their security posture. So in my discussions with CIOs and CSOs around the world, cyber resiliency is the top cybersecurity priority, and we are not seeing any change in our demand environment.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

And, again, we are very confident about the numbers that we have put up. We believe that we'll end this year very strong, and we continue to transform and help our customers with cyber resilience posture, giving them peace of mind. And what is also interesting is we are operating in a $50,000,000,000 market. And identity resilience and identity security, we're only expanding that market. And as at the end of this quarter, we are 1,200,000,000.0 ARR.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

So we are not opportunity constrained. We are not market constrained or demand constrained. We believe that we are positioned well. We have a unique offering in the marketplace, and we'll continue to innovate and scale.

[John DiFucci, Senior Managing Director at Guggenheim Partners]

Thank you. That that's all clear. And and thanks again, Vipul. I love you give us quotes all the time, the whack a mole. So thank you.

[Melissa Franchi, VP & Head of IR at Rubrik]

Thank you, John. Next question?

[Operator]

Your next question is from the line of Eric Keith from KeyBanc Capital Markets. Please ask your question.

[Eric Heath, Vice President - Equity Research Analyst at KeyBanc Capital Markets]

Hey, good afternoon. Thanks for taking the question and congrats on the strong results as well. So Paul, wanted to come back to the identity opportunity again. Clearly, it was a huge focus in the call today and it's been a big focus in cyber more broadly. So maybe just wanted to maybe help contextualize, the size of this opportunity, if you will, and maybe how we should think about this workload opportunity relative to some other popular workloads like m three sixty five.

[Eric Heath, Vice President - Equity Research Analyst at KeyBanc Capital Markets]

And and, Kieran, if there's any sort of color on how much of a contributor that is today, that'd be that'd be great. Thanks.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

So the way to think about the identity opportunity, at least to start with, is the following. As you know, identities is at the heart of cyber strategy for every business. And identity based compromises and attack have have turned out to be near number one, attack vector. And origin of identity, which is identity service provider, has become the ground zero for cyber attacks. And the way identity recovery or identity resilience is built is not built with the modern cyber attack, like, principles and how how to understand data risk with identity.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

And that's what we are doing. We are bringing these two things together. So, these are early days for us in identity, and we believe that this is a very large opportunity that we are going after. And we believe that the identity security and data security will will eventually merge, and it'll be a singular strategy around how do we protect data across human, nonhuman identity across the whole enterprise.

[Kiran Choudary, Chief Financial Officer at Rubrik]

Eric, this is Kiran. Just to add to your second part. We got off to a good start in terms of interest and demand, but it's still very early. We'll keep you updated as we progress more.

[Eric Heath, Vice President - Equity Research Analyst at KeyBanc Capital Markets]

Understood. Thanks, Pavel. Thanks, Sharon.

[Melissa Franchi, VP & Head of IR at Rubrik]

Thank you, Eric. Next question?

[Operator]

Next question is from the line of Greg Moskowitz from Medrol. Please ask your question.

[Gregg Moskowitz, Managing Director, Enterprise software at Mizuho Financial Group, Inc.]

Okay. Thank you very much for taking the question. I also actually wanted to ask about Identity Resilience because it is a clearly important area within cyber, at least Identity as a construct overall. Bipul, can you talk about the incremental investment to go after this, including how you expect to market the solution to prospective customers? Thanks.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

Identity is definitely an area of investment for us. We are focused on identity security as opposed to identity infrastructure, and and we want to ensure that we combine our data security and identity security capabilities, features so that we give our customers a complete business understanding of risk and how do we solve it as opposed to different tools. So you'll see a lot from us in this space as we evolve and, again, continue to build. Again, Google has this we have this long term vision about things. And what we truly believe is delivering the right data to the right user at the right time on the right platform for the right duration is Rubik's business.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

And everything that comes with it, we are going to continue to kinda to innovate and evolve. And that's what we are doing here. And obviously, a lot to share as we make progress here.

[Gregg Moskowitz, Managing Director, Enterprise software at Mizuho Financial Group, Inc.]

Terrific. Thanks very much.

[Melissa Franchi, VP & Head of IR at Rubrik]

Thank you. Next question?

[Operator]

Your next question is from the line of Todd Coupland from CIBC. Please go ahead.

[Todd Coupland, Managing Director at CIBC World Markets]

Yes. Good evening, everyone. I wanted to come back to what seems to be a conservative guide even with the 7% growth headwind in Q1. Why are you thinking about the guide below trend given all the tailwinds that we've talked about over the last fifty minutes or so? Talk about that, please. Thanks.

[Kiran Choudary, Chief Financial Officer at Rubrik]

Hi, Todd. This is Kiran. Thanks for the question. Just to clarify, the 7% we referred to was actually a tailwind to revenue growth in the quarter. And that is from an accounting concept called material rights related to a cloud transformation.

[Kiran Choudary, Chief Financial Officer at Rubrik]

But in terms of the guide, both from ARR and revenue perspective, and as you know we focus on ARR as the best performance metric for the business given our cloud journey. We had a strong quarter. We grew net new ARR 23% and from a guidance perspective we raised it a few points in terms of total growth as well as net new ARR essentially passing the full beat from Q1 as well as raising a little bit more.

[John DiFucci, Senior Managing Director at Guggenheim Partners]

Thank you.

[Melissa Franchi, VP & Head of IR at Rubrik]

Thank you, Todd. Next question?

[Operator]

The next question is from the line of Joel Fishman from Truist Securities. Please ask your question.

[Joel Fishbein, Managing Director at Truist Securities]

Thanks for taking the question and great execution. Bidpool, you've covered a little bit of this, but I'd love to take a broader look out at the cyber resilience market, including identity over the if you're looking at like twelve to eighteen months, how will this space evolve? And, you know, looking at from that perspective, what are the top three priorities for Rubrik to continue to be the dominant share there?

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

Thank you. So if you if you look at what we have done from day one of Rubrik, we built a data security platform. And we took a two platform strategy across all data landscape from enterprise data to cloud data to SaaS data, now identity. It's a single policy engine. It's a single control plane.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

It's a single orchestration of data security across all three. Now we are getting into the identity, and we will cover the identity in in the in the similar vein. What we see is cybersecurity market tends to be very tool centric, and you have many, many tools. We took a strategy of a platform. And what does platform mean?

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

Platform means that you have a single preemptive recovery engine, a single native data threat engine across all your data landscape. And how do you correlate those threats? How do you present a singular view of the of the data security without loading the logs of different tools in a in a third party platform and having some other third party tool analyze it. That we believe is the result of a very archive development of this whole space. So we want to create a single platform around data and identity across all the data landscape, ensuring that our customers have peace of mind that when the inevitable cyber attacks comes to them, they can recover quickly, keep their services up and running, and more importantly, understand the risk.

[Joel Fishbein, Managing Director at Truist Securities]

Thank Okay.

[Melissa Franchi, VP & Head of IR at Rubrik]

Thank you, John. Next question?

[Operator]

Your next question comes from the line of Keith Backman from BMO. Please go ahead.

[Keith Bachman, Senior Research Analyst at BMO Capital Markets]

Hi. Thank you very much. Lots of interesting growth factors if you think about more apps, more data, you're adding identity. Kieran, I didn't know if you would offer us some thoughts then on how you're thinking about the sustainability expansion? Any comments on the expansion rate, the net expansion rate?

[Keith Bachman, Senior Research Analyst at BMO Capital Markets]

I understand it's a backwards looking metric, but if you think over the next number of quarters, any comments on how you think that may evolve, particularly given all the what seems to be very interesting portfolio expansion?

[Kiran Choudary, Chief Financial Officer at Rubrik]

Thanks, Keith, for the question. So we're really pleased with our NRR of greater than 120% over the past four quarters. As you know, we disclosed an average. The business model and the product platform lends itself to a high NRR as we have multiple products in the portfolio with which you can land with as well as expand. And historically, we have spoken about it.

[Kiran Choudary, Chief Financial Officer at Rubrik]

We try hard to split the growth between new and expansion. Obviously with scale, expansion tends to be a little bit bigger than the new business in terms of contribution. But just commenting on the expansion rate itself, in the past we have benefited a bit more from our model transition from maintenance subscription and that has normalized. But we do expect it to the NRR to moderate over time because we'll have some landing bigger now with multiple products and that is a little bit of a headwind to NRR. But we still expect our NRR to be pretty strong.

[Keith Bachman, Senior Research Analyst at BMO Capital Markets]

All right. Thank you very much.

[Melissa Franchi, VP & Head of IR at Rubrik]

Thank you, Keith. Next question?

[Operator]

The next question comes from the line of Qothari from Baird. Please go ahead.

[Zach Schneider, Equity Research Analyst at Baird]

Hey guys, this is Zach on for Srunik. Thanks for taking the question. Congrats on the great results. So curious what percent of large enterprise accounts have adopted the proactive addition SKU today? And are reps really leading with proactive as a primary SKU in new lands?

[Zach Schneider, Equity Research Analyst at Baird]

Or is it more of a post land upsell motion? Any color there would be great. Thanks.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

So our strategy is that we deliver to cyber resilience. And cyber resilience has two core components, risk and cyber recovery. Cyber risk and cyber recovery. And for the cyber risk piece, we deliver we combine the SPM and identity pieces, and some of the identity piece also bleed into the cyber recovery, and then we provide enterprise edition as a complete cyber recovery tool. And that's the strategy we are taking across all the workloads as we kind of land and expand our customers.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

And that's what is leading to a strong product adoption and overall strong growth.

[Zach Schneider, Equity Research Analyst at Baird]

Great. Thank you.

[Melissa Franchi, VP & Head of IR at Rubrik]

Thank you. Next question?

[Operator]

Your next question comes from the line of Param Singh from Oppenheimer. Please go ahead.

[Param Singh, Executive Director at Oppenheimer & Co. Inc.]

Yeah. Hi. Thank you for, taking my question. I know, you know, we've talked about identity security at Nauseam today, but, from my understanding, resilience for enter ID and active directory has existed existed for a very long time, and it's instead of product available for a lot of the companies in this market. What is unclear to me from our conversation today and from your press releases, what are some of the technical advantages and benefits that Rubrik specifically brings to the market that may not be available today?

[Param Singh, Executive Director at Oppenheimer & Co. Inc.]

So I'd love for you to educate me on on why Rubrik should be winning in identity security and resilience.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

This is a really good question. So as I was saying before that Ruby combines identity and data security in a single platform. And what that allows us to do is that not only we create the the backup copy of identity in a cyber resilient immutable way. But upon recovery, we stop the reintroduction of malware. And so if you think about that, we have a very strong end to end solution.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

The second thing is that we also combine active directory and enter ID recoveries in a hybrid cloud manner, is very unique. And this hybrid cloud understanding and and replicated state to be able to deliver fully orchestrated identity recovery that takes the identity recovery time from from, like, a week to ten days to really minutes by creating a wizard style click click click done. And so so we have really brought the Rubrik's core simplicity, deep technology, ability to deliver clean recovery fast into identity and combine that with the data security.

[Param Singh, Executive Director at Oppenheimer & Co. Inc.]

Got it. Thank you so much, Abul. That's really insightful. Appreciate it.

[Melissa Franchi, VP & Head of IR at Rubrik]

Thank you. We'll take the next question.

[Operator]

Your last question is from the line of Jonathan Reichhaver from Cantor. Please ask your question.

[Jonathan Ruykhaver, Analyst at Cantor Fitzgerald]

Yes. Congrats on the good quarter. Bipple, your comments on ANAPURINE seem very topical. I saw a quote from Gartner that predicts that at least 30% of gen a GenAI projects will be abandoned after proof of concept this year. And and one thing that we we hear about from users is an is an impediment to those workloads is just the, you know, multitude of disparate data stores, both on premise and in the cloud, and and specifically the challenge around real time identification and classification, which, you know, it seems increasingly foundational to building data security.

[Jonathan Ruykhaver, Analyst at Cantor Fitzgerald]

So what I what I would like to to know in more detail is just, you know, how specifically, do you see that issue, and how does Movereq differentiate around identification and classification?

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

So if you if you look at our platform from the very beginning, we combined security and and and and data management in a single platform. And to deliver clean recovery, we need to understand the integrity of the data, sensitivity of the data by doing the classification, and ability to have a full understanding of user and user interaction on the data. And and then a couple of years ago, we realized was that this actually data and security coming together in a compliant and go in a full governance mode allows us to supply the right data to the right user at the right on the right platform at the right time for the right duration. And it could be very appropriate for us to give this data to a generative AI applications, LLM applications. And that's when we started this whole Anapurna effort.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

So again, it is very early in our journey. We believe that we are a unique company that sits at the intersection of data security and AI. And we have a unique way to accelerate GenAI adoption by delivering input security and the data at the same time. Again, this is a long term effort for us three to five years out. We are we are figuring out product market fit.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

We are figuring out how customer would buy, how they would consume. Again, is one of those s curves that we are building as part of our portfolio of risk that we build as part of our lateral motion. And again, we wanna build the next hundred year company and that long term company will only be built if we think ahead, understand where the market trends are, align our strategy and product thinking in those line, and deliver the right product at the right time.

[Jonathan Ruykhaver, Analyst at Cantor Fitzgerald]

Understood. Thank you.

[Melissa Franchi, VP & Head of IR at Rubrik]

Thank you.

[Operator]

There are no further questions at this time. I'd like to turn the call over to Bipul Senha for closing comments. Sir, please go ahead.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

So in closing, I want to thank to all Rubrikanth, all our customers and partners, all of you on this call who help us understand the market better, keep us disciplined, and to everybody in the ecosystem. We are very early in our journey. We are just eleven year old company. We have large ambition. We want to build a platform company across data, security and AI.

[Bipul Sinha, Co-Founder, CEO & Chairman at Rubrik]

And I will repeat, the best is yet to come. Thank you so much and have a wonderful day.

[Operator]

This concludes today's conference call. Thank you very much for your participation. You may now disconnect.

Participants

Executives

• Melissa Franchi, VP & Head of IR
• Bipul Sinha, Co-Founder, CEO & Chairman
• Kiran Choudary, Chief Financial Officer

Analysts

• Saket Kalia, Managing Director at Barclays Capital
• Kash Rangan, Managing Director at Goldman Sachs
• Andrew Nowinski, Analyst at Wells Fargo
• John DiFucci, Senior Managing Director at Guggenheim Partners
• Eric Heath, Vice President - Equity Research Analyst at KeyBanc Capital Markets
• Gregg Moskowitz, Managing Director, Enterprise software at Mizuho Financial Group, Inc.
• Todd Coupland, Managing Director at CIBC World Markets
• Joel Fishbein, Managing Director at Truist Securities
• Keith Bachman, Senior Research Analyst at BMO Capital Markets
• Zach Schneider, Equity Research Analyst at Baird
• Param Singh, Executive Director at Oppenheimer & Co. Inc.
• Jonathan Ruykhaver, Analyst at Cantor Fitzgerald