On September 9, 2024, Rubrik Inc (RBRK, Financial) released its 8-K filing for the second quarter of fiscal year 2025, ending July 31, 2024. Rubrik Inc is a company that offers data security solutions to organizations ranging from the largest companies worldwide to mid-sized smaller customers. Its platform is architected to help organizations achieve cyber resilience, which encompasses cyber posture and cyber recovery. They enable organizations to confidently accelerate digital transformation and leverage the cloud to realize business agility.
Performance and Challenges
Rubrik Inc (RBRK, Financial) reported a significant increase in its key financial metrics for Q2 FY2025. Subscription Annual Recurring Revenue (ARR) grew by 40% year-over-year to $919.1 million, and total revenue increased by 35% year-over-year to $205.0 million. The company also saw a 35% increase in the number of customers with $100K or more in Subscription ARR, reaching 1,969 customers.
However, the company faced challenges with its GAAP gross margin, which decreased to 73.1% from 76.6% in the same period last year. This decline was attributed to a $7.0 million stock-based compensation expense due to the vesting of certain equity awards following the company's initial public offering.
Financial Achievements
Rubrik Inc (RBRK, Financial) achieved several financial milestones in Q2 FY2025. The company's Subscription ARR Contribution Margin improved significantly, rising over 1,300 basis points year-over-year to (8)%. This improvement reflects the company's enhanced operational efficiency and its ability to balance high top-line growth with progress towards long-term profitability targets.
Key Financial Metrics
Below is a summary of Rubrik Inc (RBRK, Financial)'s key financial metrics for Q2 FY2025:
| Metric | Q2 FY2025 | Q2 FY2024 |
|---|---|---|
| Subscription ARR | $919.1 million | $655.0 million |
| Total Revenue | $205.0 million | $151.5 million |
| GAAP Gross Margin | 73.1% | 76.6% |
| Non-GAAP Gross Margin | 77.0% | 76.7% |
| GAAP Net Loss per Share | $(0.98) | $(1.35) |
| Non-GAAP Net Loss per Share | $(0.40) | $(1.33) |
| Cash Flow from Operations | $(27.1) million | $(6.7) million |
| Free Cash Flow | $(32.0) million | $(13.4) million |
| Cash, Cash Equivalents, and Short-Term Investments | $601.3 million | $873.6 million |
Analysis and Outlook
Rubrik Inc (RBRK, Financial)'s strong performance in Q2 FY2025 underscores its robust market position and the growing demand for its data security solutions. The company's ability to exceed all guided metrics and raise its full-year guidance across all metrics highlights its operational efficiency and strategic growth initiatives.
Looking ahead, Rubrik Inc (RBRK, Financial) has provided optimistic guidance for Q3 FY2025 and the full fiscal year 2025. The company expects Q3 revenue to be between $216.5 million and $218.5 million, with a non-GAAP Subscription ARR contribution margin of approximately (8)% to (7)%. For the full fiscal year 2025, Rubrik Inc (RBRK) anticipates Subscription ARR between $1,026 million and $1,032 million, and revenue between $830 million and $838 million.
Overall, Rubrik Inc (RBRK, Financial)'s Q2 FY2025 financial results reflect its strong market presence and the effectiveness of its data security solutions in addressing the growing need for cyber resilience among organizations.
Explore the complete 8-K earnings release (here) from Rubrik Inc for further details.
