Rubrik (RBRK) Q1 2025 earnings summary

Executive summary

• Subscription ARR reached $856.1M, up 46% year-over-year, with total revenue of $187.3M, up 38%, and 1,859 customers with $100K+ in ARR, a 41% increase year-over-year.

• Completed IPO in April 2024, raising $710.3M in net proceeds, plus $104.9M from underwriters' option, with significant stock-based compensation expenses impacting net loss.

• Recognized as a leader in cyber resilience, leveraging Zero Trust architecture, AI, and cloud-native solutions, with new product launches and strategic partnerships.

• Operates in a rapidly expanding data security market projected to reach $53B by 2027, driven by data growth, AI adoption, and rising cyberattacks.

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

Financial highlights

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

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

• Non-GAAP gross margin was 75.4%, up from 73.6% year-over-year; GAAP gross margin was 48.8%, down from 73.6% due to stock-based compensation.

• Free cash flow was -$37.1M, or -$16.5M excluding IPO-related payroll taxes; cash and equivalents totaled $606.3M at quarter end.

• Subscription ARR contribution margin improved to -11% from -32% year-over-year; adjusted margin was -8% excluding IPO payroll taxes.

Outlook and guidance

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

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

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