RBRK - Earnings call transcript Q2 2025

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Operator

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. ahead. go Please

Melissa Franchi

to Results Welcome Quarter Year Fiscal Hello, Call. Rubrik's Financial Conference XXXX everyone. Second

On me Choudary, call Co-Founder the with of Chairman Sinha, Rubrik; and CEO, and Kiran Chief Officer. today Financial are Bipul

a highlights press earnings to may downloaded of www.ir.rubrik.com. find deck and reconciliation Also a earnings market page page, release, this financial Investor be release after slide from today Our non-GAAP the that, issued to you'll our closed financial on Relations include the along with at was GAAP be with able results.

make call, we and statements, this our During regarding year financial fiscal for will quarter forward-looking third including the statements XXXX. outlook full

these are regarding our obligation and believe our make statements the call. go-to-market materially. motion. initiatives forward-looking any detail regarding today's trends, market subject predictions in position, Rubrik market These generative factors filings and financial other we statements expectations are statements forward-looking growth opportunities, are be we initiatives update AI product may in on will no what assumes only based on including results and These which differ regarding SEC. performance and Our strategy, that today, our our could discussed expectations risks affect to actual and with to may that results, and

that, hand over the to call Bipul. With I'll

Bipul Sinha

Thank you, Melissa. And thank you, everyone, for joining us today.

annual are our We all guided across raising outperformed top get let's quarter. profitability an We started. metrics and second Now and outstanding delivered line guidance.

our ARR XX% year-over-year. are a numbers growing million, Here reached $XXX the few highlight subscription key that quarter:

year-over-year. $XXX XX% revenue was subscription Our million, growing

year-over-year. contribution subscription X,XXX all strong important subscription over finally, measures, And points by improved remained our NRR Our basis margin ARR above XXX%. profitability

efficiency strides and business our continue great make and focus in We improving to profitability.

cyber enables the market. of you resilience winning give these the in broader that context me results. Rubrik let is great business our Now

successful what the experience more CIOs is prevention a cyber In CSOs tools, Directors and threat possible. millions to as it is if, will an the economy cyber business of outage, that strategy get a dollars spending of attack around is running global resilience conversations ensure not actor. resilience are more spite easily disrupted they Every in be human when resilience up with reminder my As clear organizations and IT cyber in is a The is in great their is becoming attacks digital fast of but topic realize world, that required of cyber a breaches asking inevitable, error back is cyber recent attack. Board or for that and #X cybersecurity. can interconnected that question in and by as a

What security data results cyber a still Trust highly is Rubrik's posture Cloud complete resilience. purposed deliver Security platform. security data differentiated cyberrecovery combines driving Rubrik Zero management, to platform DSPM, with our is in or

are We offer in the recovery, DSPM-plus cyber resilience. vendor which integrated to the enables cyber market only

Our and data recoveries attack, things of number cyber rapid products to deal attacks. unique finally, data; time generally AI-powered architecture time makes during four cyber recovery: malware fast with the threat deliver market needed after in scope because before, number recovery and four, cyber natively longer XXXx for quarantining. hunting to one, impacted and Other number and our enabling number at can't impaction; situations delivers customers data up risk, the the of sensitivity they cyber three, of two, scale,

AI tools bolt-on third-party to integrated we natively problems security deliver our learning architecture our leverages machine data solve is complex with solve. and These these not cyber or set how This engine. inside are integrations. resilience because We

recovery a from out a customers time existential Rubrik transform because operation. Our we recovery to short drawn confidently affair can objective. We meet choose [indiscernible] simple, cyber long cyber

can businesses. their organizations So continue running

win we competition. head-to-head in majority deals result, of the vast a As

platform, resilience suppliers selected automotive facto event. case which cyber quarter, legacy cyber protection they a Fortune believed data European This in [indiscernible] complex XXX of less as de vulnerable replacing a their Rubrik solution, is

and multinational financial replaced the speed American incredible integrated We've our our delivering more capabilities. investment competing and because at a an scalability. given single marketplace example, cyber cloud across while performance services scale Another robust our solution enterprise, new organization and and superior and recovery, bank simplicity, differentiated management workloads with been security security controls and gen Rubrik, in of vendor SaaS

and vendors U.S. scale a MXXX. the customer protection for and backup speed operate RSC, not vendor not its as Cloud, with recovery insurance and it Enterprise competing replaced providers, quarter, Rubrik current their with MXXX required dissatisfied protect the existing the This at environment. new-gen data could was Edition This SaaS Security or [indiscernible] a company data business

which about During such as anomaly lacked. demonstrated their detection, of XX hours compared a security security the seconds team we endorsed the our latent concept, Rubrik incumbent. X over proof suite vendors data hunting for features sensitive discovery, The time to monitoring also existing customer of and recovery and for of threat

times. with due cloud a public also fast our We immediate chord savings to drive cyber operating striking delivering to while recovery customers ability the are cloud in cost

prestige in our resilience A protection Rubrik cyber cloud cost resilience complete extending footprint center complete expanded leader This cloud for workloads. both to and across in RSC selected Rubrik addition ability Azure, Fortune beauty their for cyber significant XXX global to customer data for savings. cloud-native by deliver purchasing

across footprint secure resilience the expanded company native at transformation. cloud innovation workloads digital cyber company's in Italy We unstructured our also and significantly to Aria,

XX Lombardy Aria data of million manages health citizens. sensitive care

recent of customers the disruption. come we quickly helped after have addition, In back online global IT hundreds

solution". we our instrumental during any services We was all we a to services been not to IT are for this "Rubrik patients. network the hospital previous would Rubrik able massive back our customers, with different What grateful to provide [indiscernible], growth, does helping quickly. hospital appointments, An at have were outage. and continue in get ability did matters. running their cancel large have business to Our story It a up leader and

on to moving Now DSPM.

while requires about attack is of during but and the into sensitive before to minimize only visibility recovery, about Recovery cyber resilience exfiltration. also data data not what posture Cyber posture. and DSPM that cyber risk gives cyberattack surface of Our view exposure area security is preparation. data data time is

large This agricultural cyber of visibility DSPM customer risk expanded company exposure existing noting multi-cloud the footprint superior DSPM ease across exfiltration. Rubrik's displays quarter, data reduce the Rubrik's to Rubrik use environments. greater vendor, This adding European and resilience by and of a

full-time the and Another a example, DSPM manual Rubrik classification data. otherwise very added months sensitive and consumer few company company's customer. would sensitive into its XX according discovery serves. the to data In Rubrik have taken a provide of attack u.S. reduce work only services automated to which of hours, visibility employees resides across

what AI agency seeing generative that are we to addition, is In DSPM. brings

and organization preparation proprietary an DSPM LLM, user be Before be access trust, critical and into data data a plays gets role AI and this. established managed. must in sensitivity fed must safety

These key Now partner few data made part motion. go-to-market of are widened announcements let's relationships. talk notable a a security across our We that about landscape. relationships and our our partnership recently and deepened

help Mandiant that joint attack, event back partnership, and to up the ensure an running response an work this business technology we Google will This Last incident recovery. solution, with a to together month, fast and detection, in collaboration end-to-end cyber be of part Rubrik get as new and offers the a Cloud. Mandiant, as integration customers spanning threat data teams announced partnership customers Through and tightly will our able possible. of integrated

partnership providers well. We continue to as cloud strengthen our with

this enabling Life as named of the This of our This in As Year comes with Microsoft. and data, care for quarter, Partner the while commitment U.K. U.S. Partner an heels data, organizations the in wins all represents of health on accolade year to innovative and in Sciences operations driving the seamless in protecting Microsoft including solutions example, was patient XXXX. our partnership Microsoft Rubrik Healthcare award Year the and last

profitability. Now and to let's turn business efficiency

This our subscription we points quarter, margin X,XXX ARR contribution by year-on-year. improved over basis

on margin are are and to these with We improvements. focused the pleased continue opportunities we improvement relentlessly

we innovation components business, to resilience and in leverage profitability These are path. clear, focused platform on key me our opportunity, capture let business we While and delivering are well in equally and to executing very our that building entering the and we cyber go-to-market are model. be on invest engine

their our with competition our cyber are you will why the in from and This of big to is I attacks where at are going, focus. profitability cyber winning closing, architecture. is is resilience we thank believe in continue make the clear. hard to addition around and second, in because cyber A differentiated strides is finally, durable path rapidly highly against you can First, a market business. all at world a unique great we leader building and our we scale, for takeaways: recover work and cybersecurity In to growth and to X scale; we the leave diligent Rubrikans resilience; customers

it pass our Kiran to pleased With that, I'm Financial Officer, to Chief Choudary. over

Kiran Choudary

today. you Good and us Bipul. everyone, afternoon, you, thank Thank joining for

As key ARR our our high profitability. of team guidance all operating we've subscription resilience execute opportunity, of continued strong cyber environment, our the second including and results of around, continues the in notable customers, a across market advantage large in This was macro of had our metrics, reflected amongst and drove momentum prioritization ARR which margin. to and in Bipul results. deals contribution the all subscription very take improvement shared, our end ahead well is quarter The highlighted very of by quarter broader notwithstanding

third operating second our basis. then results metrics will All key guidance quarter provide year-over-year the year a unless briefly recap quarter on and financial noted, are full I otherwise Today, XXXX XXXX. fiscal fiscal comparisons, for and and

acquiring key our a believe expanding best in success subscription maintaining reminder, top new illustrates with existing which we our our customers and customers. is As and ARR, relationships line metric

in combining in Our platform resilience recovery the ARR million the highly our This $XXX our highlighted market. was second Subscription second cyber performance. differentiated quarter quarter, is by cyber leadership DSPM XX%. drives up and

in of We of XX%. up cloud, drive adoption resulted which our Cloud to million $XXX [indiscernible] Rubrik ARR, continue

couple of transitioning growth from RSC. points a declining percentage Our subscription to ARR base benefited maintenance our

a new expansions. to combination Our lands were logo Rubrik customer strong existing driven of results and by

initial We a land after allows a have for and opportunity expansion model our contract. compelling that significant expand

secured with the additional and vectors on products. our applications applications X customers our platform; drive of secured that Rubrik, are: one, data adoption two, The security growth from of three, data main expansion additional already by

with expand greater net adoption contributes a quarter rate, ended an subscription in more, of year of approximately contribute ARR up period. ARR, enterprise to our We customers and than X,XXX our drove subscription retention ago up land This another additional XX% of partner average year an of now quarter example, As customers. the retention from in period XX% security net larger we over subscription our strategic customers XXX% rate. These functionality become QX ago from up motion the X/X now or increasingly $XXX,XXX subscription of with XX%. as

XXXX, and revenue $XXX million, up revenue subscription quarter XX%. fiscal second $XXX was million, Total was our up For XX%.

Americas the to revenue XX% from Turning Revenue the $XX Americas to million. $XXX outside grew grew million, to mix XX% the geographic of revenue. from

and gross going turning Before non-GAAP to to margins, be forward. note expenses would like results that profitability, discussing I'll I

balancing We strong scale to growth are at profitability. improving with committed

on delivering We margin strong free cash are and gross our margins, focused contribution subscription improving growing flow. ARR

ago in were anticipate year Our in from costs non-GAAP stay hosting end from which future. XX% margin long-term in in due gross to line in our margin margin period of our product growth to quarter, XX%. solutions, We of lower development XXXX. support the the XX% cloud improved at and benefits the Gross of to of benefited up our was total efficiency continue to expect These changing mix to offset with we higher by and scale second and target customer fiscal cloud the organization. XX% the gross

at As non-GAAP subscription calculated the of as ARR. subscription leverage revenue to as we a divided ARR path subscription non-GAAP contribution ARR, less by operating operating This profitability. measure key less cost look our expense then and of is and margin reminder, supporting subscription

our scale. leverage this a terms. to contract at XX in removes a Subscription was improvement flow $XX ago in our operating months, Last over XX% improvement compared metric from includes contribution believe improvement ARR and an employer well evolving to XX operating operating subscription for would find cash our margins improvement we impact and negative ARR contribution X,XXX taxes of than duration onetime to X% as payment We ARR negative contribution QX. demonstrate cloud it be year. an or more the in be expense, payroll this leverage free calculation to the transformation ability points. negative year in drive We margin expenses as profitability relevant in period, months, from because last of demonstrates this X,XXX points Adjusting in basis margin million in margin the basis approved last QX X%, for the operating subscription

growing our scale was in contribution continued improvement driven and The focus organization. efficiencies margin driving the subscription across by on

spend marketing force, efficiencies leverage see increasing We moving go-to-market particular, our organizational are as revenue base, ramping acquisition. productivity pleased to X,XXX sales year-over-year a down percentage see points from with in of the of of effectiveness as our a basis we expense and and in our improving benefits the renewal in cost sales

expenses was we of believe and our marketing Free percentage completed still payroll improved to benefits. these August this to further improvements in well annual last the these the year In of half related are to cash was decrease associated last Despite to expect we the part fiscal $XX the negative the fiscal negative with million The in cloud as innings mix as was taxes a IPO. excluding Laminar, in year, However, related and flow sales. in $XX our see due early flow year-over-year which XXXX. we in continues primarily free the to XXXX. in we related renewal onetime cash particular, monthly growth the of of during Also employer products. to bigger to base a flow free consumption of we sales payments incurred due of increasing becomes scale acquisition expenses of revenue, an SaaS to headwinds, impact of first cash and second year, million as quarter margin compared as

debt. balance equivalents, $XXX in cash We with and second Turning in strong a securities $XXX sheet. cash the to our and ended in quarter cash, million marketable million cash restricted position

remain cyber to We secular the our confident growth. now outlook. and trends different offerings fueling demand the resilience share our about powerful our for Turning

pace continue the number due which ahead. new customers variables, existing add to expect our to fluctuate the strong customers to growth RSC We and growth to can continue we execute the deliver ARR well which pace and of and subscription to Revenue we RSC. including revenue at migrate at

and terms innovation In ROI assume modestly in cash high investments we contribution investments, contract We drive R&D contract in. of make large to and be growth will focused, to the we ARR we products, half second the leverage market our in to operating in Hence, momentum and terms to growing and plan duration continue SaaS to headwinds margins and the operating continue and payment flow. which through to free to cloud point go-to-market profitability. with measure operate subscription

million, we fiscal guidance expect of Now $XXX.X million for XX%. XX% turning to quarter to the up third revenue of XXXX. In $XXX.X to QX,

In X%. terms of expect we contribution of ARR profitability, non-GAAP margins subscription negative X% negative to

based We of negative weighted negative $X.XX million on XXX average EPS expect a outstanding. approximately non-GAAP shares $X.XX to

subscription XX% new third fourth modeling a the be help to with reflecting the year, expect full For in $X.XXX roughly of and growth billion, quarter year-over-year of equal. metrics. and across net the both now our year expect we raise pleased XX%. are guidance top we profitability to our fiscal line ARR rate range ARR billion seasonality in to We to $X.XXX the To XXXX, for subscription

of to delivering of to revenue this million million, full XXXX implying invest We plan to year efficient scale. XX% $XXX while growth. the range to We us in into fiscal the XX% $XXX growth opportunity enormous expect ahead for at continue

non-GAAP We contribution margins ARR from X%, reflecting and negative expect negative X% further QX. between margin subscription improvement

We for weighted on EPS $X.XX million outstanding to full the negative year. shares approximately of XXX negative average expect based $X.XX non-GAAP

negative negative of the or of with $XX onetime flow $XX fiscal $XX $XX cash flow IPO. the million million We in associated cash $XX the payroll free expect This million million second negative positive tax to free year. half implies negative in our excluding to million,

our go-to-market strength collectively this motion growing offerings unique category, ARR and support subscription of for large outlook. growth cyber proven product the for closing, and our vision our resilience, market In

continuing past the that, beyond. questions. you to we'd road are our Goldman and We the any of including quarter forward this We and months into look for to like look forward of proud performance up to With Conference. momentum on Technology many the coming upcoming in open the year-end at Sachs call the seeing

Operator

Instructions] [Operator

Barclays. to Kalia We'll move with Saket

Saket Kalia

resilience Nice in wake customers the Can I the you. about what mentioned you things your some little interesting in cyber CrowdStrike are talk of results. a about saying Bipul, prepared for remarks mean just maybe bit protected changing you early well kind Crowdstrike. it's how I'm thinking I'm and all? your about cyber sure curious But financial how to about this -- customer benefit see if at But from just customers of any outage? were. is resilience,

Bipul Sinha

is prevention business successful their dollars because top have resilience still invested continue of in and or organization cyberattacks. whether Cyber folks not operating they mind cyber are every of they of world can for in have breach realized they cyber around tools is, an the millions event sure what

CEO So that. And they every keep businesses is our how results every Board their do up Director, running. and thinking about of reflect

growth, at million. XX% look you ARR $XXX over to subscription we If our grew year-over-year

total If which year-over-year. XX%, you the our our And subscription the grew that real our revenue a look is helping business, revenue, but at trends XX% of indicator business. are these are grew

could partner, fact, unfortunate event CrowdStrike as what preview a was have human on is economy cyber the happen error. this if incident with helped it. of that saw a recover. this and people great IT global goes real you jointly down can have global that customers systems can incidence, or a particular little take impact else that this of everything and a hundreds But we attack In Crowdstrike massive cyber real

momentum Board that factors months So is discussion, is Directors around believe has of to a will a we that market cyber focus And And coming [indiscernible] this particular of this more about one segment. will that of more asking the particular question lot be many help bring lot issue quarters triggered resilience. of resilience. much a and there

Operator

Fatima We Citi. Boolani move to with next

Fatima Boolani

a speaking, just management private of competitive voting we've both you your in posture about certainly data lot of in a the bit also little activity lens, for seen and companies, market kind products from you security markets better just broadly driving a a rates landscape attach space, and question with from their Bipul, the newer the for customers in wallets DSPM. but around but

a give wondering with those are with sort you just better comment maybe if Laminar. quantitative as us little year can in X granularity products I'm and tracking much So how more of to bit

a recovery company kind with and backup do that SaaS you relatedly, a then just And partnership large of a acquired have company. enterprise

this and some So in the options I advantages are doesn't of stores on how your embedded differentiation that call the of hoping you potentially, set actively was when diminish it, you could straight there kind data protect. record do your

Bipul Sinha

three in There first are And me I'll strategy. our in actually questions acquisition come like DSPM. force [indiscernible] you sense of that this issue, competition back and give question. let Salesforce my then this Look, to validates of sales

Salesforce applications cyber organizations We the customers all and focused SaaS SaaS cloud cyber world security one engine, SaaS are a control applications provide and single we SaaS whole protect. on all the company, that and resilience And landscape. is buying is of businesses are that enterprise, a actually policy on validates data we telling important mission-critical. across SaaS to the resilience becoming single governments a want vendor But strategy. across SaaS our XX-plus security a and their is application data around landscape. of

is make XX Otherwise, to sure they are turning that the running. XX, knob business

is very positive brings cyber is our actually into important. this And resilience And the Salesforce us. is focus for So partner. it why

we a their and example, with created I'll a landscape consolidate they health them. to our And company from single hearing on cyber large health solution resilience an company, insurance are In Fortune protection platform. us want insurance XXX called a give data you jointly said what fact, we customers,

for positive very it's So us.

our you success back at if our results, competition, in marketplace. our coming the look look at the you If results, to and

win new if we cyber And competition. majority our, our you deals the again, winning look of gen are resiliency as are market. vast winning as across both competition legacy We rate, at well

platform than their and fact, saw ACV cybersecurity very replaced vendor cyber a In large capabilities, Rubrik we more a that land, they financial million over recovery abilities. a data had a company, delivers which new-gen as native cyber $X

and did, integrated Rubrik and cyber resilience. risk, you -- when natively platform the And capability across what about matters data an all talking built cyber we into architecture data So recovery landscape. data are threat

we wins. product that's in to So unique our what a have, leading again, very very is market, a and large

You talked DSPM. about

this is because generative an expanded demand cyber before DSPM integral who for hands. of models, piece also data? fact, threat is In want falls AI our view which into of RAG feeding we resilience and feed risk wrong the that is in the essentially the they and data data accelerating has risk, strategy the DSPM, data their DSPM people what to or to the because is understand LLM data Are access

security, So our into is now XX AI fed data gen AI see that a in we customers it. gets product. Obviously, gen us, but space. product have we gen AI the using traction trust, interesting depends responsibility upon new DSPM And that more for than DSPM

cyber fact, leading a a company resilience we the combination of with cybersecurity in around cyber are plus In world. recovery and cloud number brought cases of DSPM seeing this

Operator

We'll with Andrew to Nowinski move Wells next Fargo.

Andrew Nowinski

the question Veritas automated Congrats or customers, IPO. should of an ask to great it I on those migrate merger, they'll using deal tool. -- closed most and post platform over Once I [indiscernible], I to a Cohesity customers another to want acquisition, quarter so with merged like be the your pending those sounds Veritas a able the is about say. guess

So Veritas be previously and on a they to will to on? much former than those customers were convince harder not it platform Rubrik switch be they'll better to

Bipul Sinha

Andrew. you, Thank

chance. durability discussion within with companies or In some company. is out single And those products will our that of and if have have if fact, the where you what actually relationship look they merger, marketplace, give else in customer of account. we a win single and in when the and you're we business. they that single if we Unlike one of both in NuGen the against the in deals. When product replace environment And vast, of was large you cyber lot with what competition, customer that in to Microsoft a ask resilience are around they our will customer rate ways Cisco definitely and at environment. the a exist product, majority every or are a the the #X product legacy had the first and is winning trying naturally heard concluded there vast And Veritas marketplace product of Rubrik looking we concern Cohesity-Veritas

customer needs Cohesity actually fact, It's merging, for lot customers customer happen, is lot tremendous around Veritas opportunity promised set change, terms we will of Veritas both And rationalization of else out And prodding map. looking there. what thinking if going you to be lose question a for of open in that a So products is opportunity. a them believe more find Whenever terms all us. is to road Moreover, there a is in that clear road companies have I'm X people they It's and good in products, to delivered. I'm question. and map, an that's my today, like a

Operator

next DiFucci Guggenheim move John Securities. to with We'll

Howard Ma

NRR adoption Security John. Cloud, Howard you for X Bipul that's additional is out the contribution from But for Karen, or pieces. more to On called Rubrik positive. can other obviously And either of Ma comment the you increased on on This products. security

upsell a workload X-parter. apps is Rubrik. kind and So secured expansion or of additional This by

cloud there, seeing space of signs you additional see of cyber do near first, the can the are any lot these part you there a white resilience. second protection space related slowdown a both if remind first in the is, adding in drivers? out white applications is, in and map The lot And of X Or your are you term? other data part product is you which of to us road still

Bipul Sinha

Howard. Thank you,

saying data look we platform. going is resilience. How attach legacy that security at to we And a we [indiscernible] our part what doing well by you platform. at on of our products And hey, security security our architecture have product we we data recovery that to look data enterprise you and deliver have is as you a contributed do we of the if cyber business NRR addition. as security comprehensive If And platform backup architecture. our that a Rubric X/X have data are security wind, very and are in of data customers our platform, products into a comprehensive attach transform that, addition expansion, as we suite

demand in are we of seeing data of customer product. any our So not or terms attachment security slowdown the

In fact, our again more quarter enterprise at new of adopt came purchase. customers this edition the than to XX% in first

continuing see the platform. more strong on SaaS are platforms cyber to the target as demand as And strong and us announce and you next the more Salesforce.com expansion our enterprise. critical Obviously, these us saw So SaaS. in resiliency for becoming we as

and all We unique apps SaaS are recover, will policy you more single across the in SaaS are which are consolidation the engine, control the when strategy that and the single more their all go under have chips attack security the Rubrik data apps, as a before. well a of said apps cybersecurity. of and resilience Azure, across apps. cyber all is expand native landscape our with and all turning center, advantage in the our large to cover that that I XX you AWS, category platform GCP you cyber as so cloud apps to are not emerging a to market is, as resilience platform apps in XX, continue our growing And by native be the love, down, as really way, customers across apps #X a knobs, are within That's when all the to

Operator

We Moskowitz move Mizuho. next Gregg with to

Gregg Moskowitz

secondly, Rubrik outage. the I velocity the simply can had then Bipul, usage the curious been just an ascertain IT Ruby that you too if build led question for CrowdStrike just is And from looking or I difficult for what has follow-up a outage or was gauge? wondering Okay. increase regarding the to to AI. about second has how in pipeline

If give as you update there well. us an could

Bipul Sinha

Thank you, Greg.

of that an ramification IT when we such outage. fact, happened global the also discussing In meltdown were

outage. upon leaders I In file before, saying and a the particular of such operations. could and that in security prevent a digital and Obviously, do to at together, of in back showed it's the preventive a large number is down of what anecdotally, error human a fact, we solutions. recover of plan cyber a recovered what you bounce happen They was such lot single really scale, such hundreds pace could and Board But to of to and an customers, their was take a calling as we early it rapid attack, this us saw global in But can't we scale. IT business a if isolate our lot hearing small power And incident. gauge ongoing of a Directors what's money too that And can a systems. all have CrowdStrike platform unpreventable. the saying significant this economy impact we spent about how are the the keep Rubrik preview with

So forward. it many X this that we only market factors the of going will propel will believe be that

is Your second question around Ruby.

Just Rubrik's the trained is and teams Ruby because as are they agent. on. we security are focused with IT being such they quarantining, And IT as of asked generative management, been on hunting, and work, threat have are or not cybersecurity which to set threat more equipped this do AI team productivity increasing to up, IOC operations more not

capabilities we created to Ruby our resilience as addition have enterprise And part so we enterprise work. all edition. our have done our strategy the productivity cyber to supported created what have is we offering that support because as multiyear And really is as on of we bring this standard

agentic Ruby advancement it. skills the as system and platform the as in extend will evolve happens going around AI, forward, continue the and everything else really Rubrik to is goal -- we it our to And generative

to Facebook, Our is complete ultimate able you resilience. that use goal you be cyber can do if should

a handholding a is are customers. gain lot a to Ruby person more is Ruby a of the it. sitting in so as that because you believe do this you'll that cyber it's outcome. terms we with But amounts "product" skill of we our for really productivity monetizable and And shipping, where to continue platform our building our that person resilience that sets us customers think somebody not in add see are And event us all to separately to --

Operator

Truist Securities. move to Joel We'll with next Fishbein

Joel Fishbein

on I that a would made maybe love about you talked where Obviously, just you Karen, one if more strong forward? really Congrats to little margin sales some but little you. from marketing, would see the leverage I on could business. and bit significant be execution. down us will bit you drill on the side progress the for deeper moving give helpful. we come granularity, know a of

Kiran Choudary

thanks question. your for Joel,

the rate And of of are marketing investment that of the point quarter-over-quarter know, on contribution cloud by So key And yes, we improved margin. here IPO, our and margin year-over-year. if as the remove R&D. we XXX have run is ARR on made and impact X,XXX basis areas, the time margin work tax that you significant points. to at the a the the we've transformation. efficiency some driving And big subscription key for progress. been areas is payroll progress is ARR business and because make metric sales you a basis And improvement metric we primarily for which have us given And continue

I'll just coming productivity. primarily highlight efficiency, And it's few from a sales more areas.

-- multiple enablement and down our leadership we multiple doubling international and return products, generating in are sales expand. some federal. land investments more markets productivity, force which are of With like on development growing and to allow and getting also greater our We delivering on

are terms grow I marketing leverage targeting And our leverage partner R&D, is But to and the the the more ability of well. and leverage as the year, to leverage us continue business. with work investment, on in leverage in our cost gives to hard R&D renewal us lowering continuing It's We day the acquisition say, which as largest scale for cost also still we And minority renewals. of focus get natural centers, well efficiency, in of global last the would in a really greater innovate innovate with grows, we or using as then our natural we model. second account base well.

the are X driving I So those areas, in say, would efficiency focused we on are the very business.

Operator

with to Capital Heath next Eric move We'll KeyBanc Markets.

Eric Heath

here. set strong results Really of

kind maybe enterprise points evolution of uplift to the back Chief given tier. you're what if data of DSPM. just with and with the organization. with more your how in then and conversations just proactive of the the come this in the security share driving on to or customers, conversation of terms early that engagement CISO Information of Officer, XX some adoption customers, kind wanted engagement just is the could Bipul, seeing And of with you proof the adoption Security maybe the is going I So

Bipul Sinha

hearing Let about I'm what me talk first from the customers.

So and the who and And cyber confident a data looking can withstand are at recovery, and to security and have what the access he to that Unless which to and data want deliver reason will because the is go food said looking company they an is of large is the threat mind. the at is is who to DSM, because they able has cyber is they company, fast existing to again a they understand is data is being Board security they the Risk CISO, doing data. are not data sensitivity understand the to say, peace Rubrik customer, DSPM secret of what the is who attack. sauce risk data the able threat. really

is they example company. legacy gas my focus conversations, oil replacing resilience resilience, on overhauling Another Fortune and like had cyber major CISO the vendors. actually by cyber In really XX

cyber Another Fortune partnership strategic XXX health conversation mandate. a was to Board because was CIO company, resilience a deliver all that about care

are package refining we we to resilience. together. all deliver our very and how on and these a recovery cyber of our why cyber cases, is it that's So data cyber in and case. platform see, be in all recovery security, strong DSPM early to emerging plus packaging very the use these of we focused on And Obviously, is complete how bring DSPM very, capabilities

DSDM now mentioned in with We customers XX as are enterprise over I with attaching strength our DSPM. addition. a before, seeing And

things how and we are we but traction. will edition. we seeing these So the we evolve, put enterprise in a interesting Obviously, together how plus DSPM traction package are strong seeing

Operator

next to Lee move Fu Cantor Fitzgerald. Yi with We'll

Yi Lee

around first-class incident response joining team Congrats strong for Mandiant My results on does response Intelligence you're XQ. Threat sense us make together. fiscal that total the back-to-back Mandiant It the collaboration. question with Rubrik's ransomware

with So cloud strong for How the Azure as well color you Microsoft partnership, on future understand of my that around And think very on revolved Cloud. around AWS the question any in the point. the big -- later penetration it Google do sector. Microsoft question me. about you're roadmap, We is that's the

Bipul Sinha

Look, we partners. love our all

resiliency one. all partial are AWS And a not we a strategy we we or are partnership and is to platforms, where want build We and platforms solution. partnership in or SaaS data across vendors is Mandiant We Microsoft, significant other numerous deliver a multi direction. where center our to create [indiscernible] step Google, win-win cloud platforms, that there on-premises, cyber platforms partnership because across

intelligence, response two If cyber Rubrik's and data Mandiant's our you customers think Google has to give security Cloud. together about difference incident clean on security the threat room recovery come of capabilities solution, us data comprehensive intelligence, and complete

Mandiant, think now you they Mandiant integrate customers If threat feed and from Rubrik. on are the about it use Rubrik's customers can our that overlap with getting

product power I to the product it us delivering Together, about for exists the in the X, pre-calculating and to the X we we partnerships. customer. integration to are we're company are ecosystem. makes Truth to continue value the cyber we customer think of create what is And that's will engineering our is these of to these resilience. threat of Now it value data true create starts creating the are relationships. as the running X want completely to we on level operations. partnership, as taking more Ultimately, that panel with be to our if customers, sense at do look, and more in more we a it if feed equals generational by value want a plus deliver And

Operator

Todd We'll CIBC. move Coupland to next with

Thomas Ingham

follow-up had Veritas-Cohesity a X-part question. One, question. I just a the on

when yet? ramp started a And then it what period? time opening expect a I you up had how You it's to talked follow-up. over would about up window. Has quick And that

Bipul Sinha

road features need, road more more We are of the product hear of map opportunities for are stability in calling being prepared uncertainty the and about everybody is breach worried -- about. customers their map really thinking marketplace, cyber the are definitely DSPM have delivering it, is they noise recovery together. combines and seeing posture in and we a cyber calls. resilience, lot to a platform so that cyber and attack worried before attack fiber open responding us. There's to that definitely and coming questions more have this includes we and the are that believe Veritas-Cohesity marketplace, around to those definitely the more about they starting us cyberattack, we we And of for will assumed of unique during that and are the a be about and that's the capabilities Obviously, we superior what and post up the

Thomas Ingham

incident of conclusion. if we enterprise understand is the about follow-up talked on haven't economy point on close, pipeline economy any, time cetera. the certainly an as having cyber and raises et then is that deals, and is size impact current And to impact, spending. obvious a I But really what priority Crowdstrike's the

that. an us give Just on update

Bipul Sinha

I tea we on adjust. we always demand. So I particularly leading our indicator not can they look the leaves a about conservative fiscally missing? are And I But read for change, what and is am seeing I'm try are that product think around always and to our -- guy. and there see any

momentum remain market Our unchanged.

the macro our change for customers, seeing mind in is in the resilience top We are for And not of cyber any segment. world. our around Board all members

the worry we is that majority deals vast, are of those that not are winning losing we Our what only of the are because are because are deals. biggest we conversations part vast

So we are of what's We outstanding about first excited ahead an half. delivered us.

confident we looking strong. about are and are it forward year, of this We finishing to the rest

Operator

Brad Bank. Deutsche to Zelnick next with move We'll

Brad Zelnick

comment for wondering half? back that I year just you guidance. you visibility raising to of assumptions I know on asked have here on just should the using helpful. know, about factors great And confidence in that you've and level Anything we if we the about that that methodology half Congrats would terms question the the macro. it we and have prior can maybe be you the a implied But been Kiran, frame can key or thus any should thinking changes the first was that full and if the guidance be far.

Kiran Choudary

question. the for thanks Brad,

quarter. we shared, outperformed had Bipul and strong momentum as So the

given into the implied you the at we And half rate, us net the growth if raised The raise the new heading guidance, X% for growth second we in the confidence over that's second outlook have double-digit by net to this the first and look half, ARR, ARR, when really look half. at you new half. had

execution our there in confident our uncertain the see pipeline still guidance, the been are Obviously, and with an outlook the execute ability feel thoughtful pretty based strong, is being and but we we and to market. has but we prudent macro environment, this on

Operator

We'll move Securities. Ives next Wedbush with to Dan

Unknown Analyst

John [indiscernible] quarter. the for is on Dan. Congrats on This

customers, the into accelerate addition of strategic Given place full in seen to are throughout year or that eye into 'XX. looking remainder on the strong growth ARR the subscription new of maybe and view year initiatives the bird's more sustain quarter and growth really the

Bipul Sinha

for ARR thinking missing As already think that's if I I'm about us. coming and go and next? I milestone saying billion was are where and before, always And up we a what a $X the beyond. billion am about do $X big at, But major you I milestone look next we to as

grow in and to we continue fact although the And that market, high to $X rate have what the products put at speed of growth to and in a things are place been diminished. to provide the and that business the look diversity that they have go vision continue in without if software strategic scale are marketplace has many to the beyond. of billion like need the the sight struggling you we lost core at focus, vendors And not

that think where potential? reach we and grow milestone? best give to its so we always continue and about how next what's do to So Rubrik to the we next milestone are highest opportunity build that the today we And

Operator

next move to Kothari Baird. Shrenik with We'll

Shrenik Kothari

unique the coming our how & the how week, success could as Summit care you central be can to Microsoft great to quarter. Bipul, Healthcare vertical? your Partner partners And this the named like as the And positioned so in uniquely like set to address seems challenges relationship in key the recognitions just the go-to-market with Year. driving the vertical. strong on Rubrik Science is suggest First first to being the health Congrats Healthcare up and are Microsoft what particular it this of Rubrik elaborate you Life is with host

Bipul Sinha

market Look, in product the an in we for years. marketplace respond what working the and moving, it X the last marketplace. market create we build on today would have ahead you how That's seeing why is really do been the impact where always think and solutions are today, how and we go the to

tremendous If you digital high. call care look market segment at health through care gain market unprotected. segment, health I'd cost transformation always care the The is protect of is going it efficiencies to health because

the result than Xx of in and you if other transformation, has so that look economy any And digital sensitive content more in average at organization health organization the marketplace. the care

for they looking health a to be are hospitals when they And able a a is to resilience. the care patients number it target-rich have cyber be deliver running solutions able result, outcomes, need a not you they still to successful as that attackers care a because As to up able very and keep have to are to result, admit deliver even gained and one, market looking environment, -- to going for are maturity attack. segment after be cyber result, health as they

whether been comprehensive is health fact, systems, largest where electronic the I other before, And market. to was offering many directory this unique user for have on solution system, as the this marketplace. years most saying we position or last have the be a management we have to have that authentication unique able in it for a the active working we our outcome all it in the In care across with mission-critical migration so care transformation, to resilience whether Azure, record, partnered cloud deliver system e-mail U.S. health X of whether the it's doing for care it's Rubrik ability and a it's to health or cyber system the massive system, health

Operator

James We'll with take from question last Piper Sandler. our Fish

James Fish

Salesforce. around Circling back [indiscernible] actually up to

about And typically of you're in benefits -- should driver Rubrik, really that Salesforce to these what second, of applications? how TCO replacing. which down solutions within vendors. are Rubrik's guys think exposure consolidating guys backup type wins on down about how First, are guess to I you consolidated and today are environments you many we customers a talked lot you in of that expansion how seeing

Bipul Sinha

we So Salesforce. cyber consolidating at offering, consolidating the resilience apps of over and support our if Rubrik X when many tools. announced and for we just apps the you we platform, is for look distinct are sell Salesforce Obviously, are onto many, Rubrik, XX XX we

data your protection, So data tools enterprise SaaS your protection. around protection cloud tools tools data around like native your around

tools We database are consolidating your data protection. on around

posture we intra unstructured We security Active security. -- for security data then and cloud. for They are cyber center consolidating have data resilience tools for management data doing management Then data are posture doing around Directory we ID. are or

we deep are been very into savings, everything on quick it when consolidating it cost many they a are X, we for SaaS that we So or over These Rubrik solution, so and lot X our just years. have they time. our for enjoy adopt this the XX X before, to technology have have person platform on we start can solutions, is as cloud platform. customers that customers when garage and into And But have day This cost don't on-prem start adopt cloud-native If was something these over Rubrik of years. in in we savings. it strategy. hard I XX% one. deliver their many, wide has platforms on or solution products savings build of in a saying cloud been totality. significant not categories TCO a Same X working built And thing we our with

Operator

Year conclude your a This wonderful Call. appreciate We at Rubrik Thank XXXX does gentlemen. any you, evening. Results may you Conference and Have disconnect Second the ladies time. Quarter and Fiscal participation,

Rubrik (RBRK) 9 Sep 242025 Q2 Earnings call transcript