Q2 2025 Rubrik Inc Earnings Call Transcript
Key Points
- Rubrik Inc (RBRK) delivered an outstanding second quarter, outperforming across all guided top-line and profitability metrics.
- Subscription ARR reached $919 million, growing 40% year over year, and subscription revenue was $191 million, growing 50% year over year.
- The company’s subscription NRR remained strong above 120%, indicating robust customer retention and expansion.
- Rubrik Inc (RBRK) improved its subscription ARR contribution margin by over 1,300 basis points year over year, showcasing enhanced business efficiency and profitability.
- The company is winning the majority of deals in head-to-head competition, with notable wins in various sectors including automotive, financial services, and healthcare.
- Despite strong performance, Rubrik Inc (RBRK) reported a negative free cash flow of $32 million for the quarter, compared to negative $13 million in the same period last year.
- The company’s non-GAAP gross margin remained at 77%, which is at the lower end of its long-term target of 75% to 80%, due to higher cloud hosting costs.
- Subscription ARR contribution margin was still negative at 8%, although it showed significant improvement from the previous year.
- The broader macro environment remains uncertain, which could impact future performance despite current strong execution.
- Rubrik Inc (RBRK) faces competition from both legacy and new-gen vendors, and the market landscape is evolving with new entrants and acquisitions, such as Salesforce acquiring a backup and recovery company.
Good day, everyone, and welcome to today's Rubrik second-quarter fiscal year 2025 results conference call. (Operator Instructions) Please note today's call will be recorded. (Operator Instructions)
It is now my pleasure to turn the conference over to Melissa Franchi, Vice President, Head of Investor Relations. Please go ahead.
Hello, everyone, and welcome to Rubrik's second-quarter fiscal year 2025 financial results conference call. On the call with me today are Bipul Sinha, CEO, Chairman, and Co-Founder of Rubrik; and Kiran Choudary, 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.rubrik.com.
Also on this page, you'll be able to find a slide deck with financial highlights that, along with our earnings release, includes the reconciliation of GAAP to non-GAAP financial results. During this
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