Rubrik (RBRK) Q1 2025 earnings summary

Executive summary

• Subscription ARR reached $856.1 million, up 46% year-over-year, with total revenue of $187.3 million, up 38%, and 1,859 customers exceeding $100,000 in ARR, including 114 with over $1 million.

• Completed IPO in April 2024, raising $710.3 million, with an additional $104.9 million from underwriters' option, and converting all preferred and founder stock to common stock.

• Continued innovation with Zero Trust architecture, Rubrik Security Cloud, and launches such as DSPM Everywhere and Ruby, an AI-powered data defense solution.

• Strategic partnerships with CrowdStrike, Zscaler, Kyndryl, and Aon enhanced product capabilities and market reach.

• Recognized as a leader in cyber-recovery by IDC, leveraging AI and cloud-native platforms for holistic data security.

Financial highlights

• Subscription revenue was $172.2 million (92% of total), up 59% year-over-year; total revenue was $187.3 million, up 38%.

• Cloud ARR reached $606 million, up 104% year-over-year.

• Non-GAAP gross margin was 75.4%, up from 73.6% last year; GAAP gross margin was 48.8%, down from 73.6%, impacted by $48.9 million in stock-based compensation.

• Free cash flow was negative $37.1 million, or negative $16.5 million excluding IPO-related payroll taxes; cash, cash equivalents, and short-term investments totaled $606.3 million.

• Net loss widened to $732.1 million, primarily due to $630.3 million in stock-based compensation following the IPO.

Outlook and guidance

• Q2 FY25 revenue expected at $195–$197 million; non-GAAP EPS between $(0.50) and $(0.48); non-GAAP subscription ARR contribution margin between (13.5)% and (12.5)%.

• FY25 guidance: subscription ARR of $983–$997 million (25–27% growth), total revenue $810–$824 million, non-GAAP EPS of $(2.35) to $(2.25), and free cash flow of $(115) million to $(95) million, including $23 million in one-time payroll taxes.

• Management expects continued transition to SaaS platform and ratable revenue recognition, with revenue growth fluctuations through fiscal 2027.

• Existing liquidity is believed sufficient for at least the next 12 months.