01—Abstract
Summary
Summary of the 8-K filed December 5, 2024. Cited figures are marked; the original filing is the authoritative source.
Rubrik, Inc. (NYSE: RBRK) furnished a Form 8-K under Item 2.02 on December 5, 2024, attaching a press release announcing its financial results for the fiscal third quarter of 2025, ended October 31, 2024.
The company reported Subscription ARR of $1,002.3 milliona, up 38% year-over-year, and total revenue of $236.2 million, up 43% from $165.6 million in the prior-year quarter. Subscription ARR Contribution Margin improved to (3)% from (14)%, and free cash flow was $15.6 million for the quarter, compared with $3.5 million a year earlier. The company also reported 2,085 customers with Subscription ARR of $100,000 or more, up 32% year-over-year.
GAAP net loss per share was $(0.71), compared with $(1.41) a year earlier, and GAAP results include $92.5 millionb of stock-based compensation expense, largely tied to equity award vesting after the company's initial public offering. Non-GAAP net loss per share was $(0.21), compared with $(1.39). Cash, cash equivalents and short-term investments totaled $632.0 million as of October 31, 2024.
For fiscal 2025, Rubrik guided to Subscription ARR of $1,057 million to $1,061 millionc, revenue of $860 million to $862 million, non-GAAP EPS of $(1.86) to $(1.82), and free cash flow of $(45) million to $(39) million, which includes $22.8 million in employer payroll taxes tied to IPO-related equity vesting. The company said results exceeded all guided metrics and raised full-year guidance.
02—Key points
Key Highlights
- Subscription ARR reached $1,002.3 million, up 38% year-over-year, surpassing $1 billion for the first time.
- Total revenue was $236.2 million, up 43% from $165.6 million; subscription revenue was $221.5 million, up 55%.
- Subscription ARR Contribution Margin improved to (3)% from (14)% a year earlier, reflecting better operating leverage.
- GAAP net loss per share was $(0.71) versus $(1.41); non-GAAP net loss per share was $(0.21) versus $(1.39).
- GAAP net loss included $92.5 million of stock-based compensation, driven by equity vesting after the IPO.
- Free cash flow was $15.6 million for the quarter versus $3.5 million a year earlier; cash and short-term investments were $632.0 million.
- Full-year fiscal 2025 guidance: Subscription ARR of $1,057–$1,061 million, revenue of $860–$862 million, and free cash flow of $(45)–$(39) million.
03—Questions
Frequently Asked Questions
How fast did Rubrik's revenue and recurring revenue base grow in the quarter?
Total revenue rose 43% year-over-year to $236.2 million, and Subscription ARR grew 38% to $1,002.3 million as of October 31, 2024. Subscription revenue grew 55% to $221.5 million.
Is Rubrik profitable?
Not on a GAAP basis. The company reported a GAAP net loss of $130.9 million for the quarter, or $(0.71) per share, which includes $92.5 million of stock-based compensation. On a non-GAAP basis, the net loss was $37.8 million, or $(0.21) per share.
Is Rubrik generating cash?
Operating cash flow was $23.1 million and free cash flow was $15.6 million for the quarter, compared with $6.9 million and $3.5 million a year earlier. For the nine months, however, free cash flow was $(53.6) million.
What did Rubrik guide to for fiscal 2025?
The company guided to Subscription ARR of $1,057 million to $1,061 million, revenue of $860 million to $862 million, non-GAAP EPS of $(1.86) to $(1.82), and free cash flow of $(45) million to $(39) million. Free cash flow guidance includes $22.8 million of employer payroll taxes tied to IPO-related equity vesting.
What is the Subscription ARR Contribution Margin and why does it matter?
Rubrik defines it as Subscription ARR less non-GAAP subscription cost of revenue and non-GAAP operating expenses for the trailing 12 months, divided by Subscription ARR. It improved to (3)% from (14)%, which the company cites as evidence of improving operating leverage.
04—Continue