TLDR
- Rubrik posted Q3 earnings of $0.10 per share against expectations of a $0.17 loss per share
- The company reported $350.2 million in quarterly revenue, beating estimates by $29.69 million
- Subscription ARR grew to $1.35 billion, marking 34% year-over-year expansion
- Full-year revenue guidance increased to $1.28 billion, above the $1.23 billion consensus
- Stock price climbed 16% in after-hours trading following the announcement
Rubrik shares climbed 16% after-hours Thursday following a better-than-expected third quarter report. The data security company turned a projected loss into a profit while raising its outlook for the year.
The company earned $0.10 per share in the quarter. Wall Street had penciled in a loss of $0.17 per share. A year earlier, Rubrik reported a loss of $0.21 per share.
Quarterly revenue totaled $350.2 million, up 48% from last year. Analysts expected $320.51 million. The beat underscores growing demand for cyber resilience solutions.
Subscription Business Accelerates
Subscription ARR reached $1.35 billion by the end of October. The figure grew 34% compared to the prior year. This metric represents recurring revenue from the company’s subscription-based services.
High-value customers are multiplying. The number of clients spending over $100K annually on subscriptions expanded 27% year-over-year. Businesses are prioritizing data protection as they deploy AI technologies.
CEO Bipul Sinha credited AI adoption for the momentum. “As the AI transformation unfolds, organizations worldwide are turning to Rubrik to ensure their businesses remain secure and AI ready,” he stated.
Gross margin expanded during the period. The company also reduced its net loss versus the same quarter last year. Cash, equivalents, and short-term investments totaled $1.60 billion at quarter close.
Raised Forecast Beats Expectations
For the fourth quarter, Rubrik projects revenue of $341 million to $343 million. The Street had modeled $325.06 million. Expected adjusted loss per share of $0.10 to $0.12 beats the $0.13 loss consensus.
The annual outlook saw an upward revision. Subscription ARR guidance now stands at $1.439 billion to $1.443 billion. Revenue expectations increased to $1.28 billion to $1.282 billion, surpassing the $1.23 billion estimate.
Full-year loss projections improved sharply. Adjusted net loss per share should land between $0.16 and $0.20, well below the $0.49 loss analysts anticipated.
New Products and Strategic Moves
The company introduced Rubrik Agent Cloud and Rubrik Okta Recovery during the quarter. Both products enhance the company’s data protection capabilities. Rubrik also deepened partnerships with CrowdStrike and Cognizant.
The firm operates in cyber resilience and enterprise AI acceleration. Its platform secures and manages data across cloud and on-premise environments. The quarter ended with improved profitability metrics and an expanding enterprise footprint as demand for AI-ready security solutions continues to grow.
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