Cyber-resilience supplier Rubrik comfortably beat its guidance in the first fiscal 2027 quarter as customers responded to its AI-centric cyber-security messaging.
Revenues in the quarter were up 39 percent Y/Y to $387.1 million, well above the $376 million high-end outlook, with a GAAP net loss of $41.8 million, substantially improved on the year-ago $102.1 million net loss. Subscription revenues were up 41 percent to $374.2 million, with a $1.57 billion subscription ARR, 32 percent higher Y/Y.
Bipul Sinha, Rubrik’s CEO, Chairman, and Co-Founder, said: “We are off to an excellent start to fiscal 2027 as Rubrik is now an increasingly strategic platform for agentic cyber resilience — bringing together data, identity, and AI in a single architecture. We are more confident than ever that we are in the early innings of the AI acceleration opportunity.”
Financial summary
Subscription ARR: $1.57 billion up 32 percent Y/Y
Gross Margin: 80.5 percent compared to 78.3 percent a year ago
Operating cash flow: $81.7 million vs year-ago $39.7 million
Free cash flow: $73.6 million vs year-ago $33.3 million
Cash, cash equivalents, restricted cash, and marketable securities: $1.85 billion vs prior quarter’s $1.68 billion
The Cloud ARR was up 43 percent Y/Y to $1.4 billion, and Rubrik grew its >$100K subscription SARR customer count to 2,946, 24 percent higher than a year ago and up 141 sequentially. There was a 120 percent average subscription dollar-based NRR (Net Retention Ratio) and a >80 Net Promoter Score.
In the earnings call, Sinha pointed out: “We are now in a new era of cybersecurity. Today, AI agents are attacking us. These autonomous agents can intrude, breach and encrypt at machine speed. Mythos was a powerful breakup call for the cybersecurity industry, but it is already something of the past. Better faster model versions are already in development. Mythos has proven that attack detection is near impossible and cyber resilience is now the most fundamental cybersecurity requirement for the AI era.”
He emphasized the cyber-security risk: “AI agents are increasingly running business processes. Workflows that assume identities, access sensitive data and take autonomous action. Once compromised, these agents can potentially inflict 10x more damage in 1/10 of the time. …While this may seem grim, we believe Rubrik is and will continue to be the answer to helping institutions stay ahead.”
CFO Kiran Choudary revealed: “Revenue from the Americas grew 38 percent to $279 million. Revenue from outside the Americas grew 43 percent to $108 million.”
He said: “Subscription ARR contribution margin was 13.2 percent in the last 12 months ended April 30 compared to 8 percent in the year ago period, an improvement of over 500 basis points. The improvement was driven by higher sales, the benefits of scale and improving efficiencies and cost management across the business.
Asked about any sales impact from hardware supply chain issues, Sinha answered: ”Rubrik has no real impact from the hardware market dynamics. … Rubrik is a software company. And moreover, the enterprise data protection part of our business is a relatively a smaller part of our business now that we have cloud, SaaS, identity, M365, a number of other solutions that Rubrik sells. And if you look at our customers, they are holistically looking at cyber resilience across all these platforms because cyber attacks are not choosing just the data center or just the cloud.”
He emphasized that: “Cyber security strategy has moved from being a prevention detection-oriented strategy to squarely now as a cyber-resilience strategy.”
This is largely down to Mythos: ”What Mythos and other frontier AI models have done, they have accelerated this transformation because, with Mythos, cyber detection is almost impossible. So as soon as intrusion happens, breach will happen. And, as Gartner also sent out notes to all the clients, that the real answer to Mythos is a cyber resilience is a must, and preemptive technologies have to be explored both for patching as well as cyber recovery.”
He said: “Our vision is attacks will be continuous and recovery has to be continuous. So, at any given point in time, you have to be ready to recover at AI speed. And that's what our Preemptive Recovery Engine delivers.”
Next quarter’s revenue outlook is $396 million ± $1 million, a 27.8 percent Y/Y increase at the mid-point. The full fy2027 outlook is raised from $1.602 billion +/- $5 million to $1.643 ± $5 million, as 24.5 percent increase at the mid-point. Sinha said: “Mythos is driving more customer conversations around cyber resilience and recovery. And that is one of the reasons why we have raised our top line guidance for the rest of the year.”
Bootnote
Rubrik defines Subscription ARR Contribution Margin as Subscription ARR contribution divided by Subscription ARR at the end of the period. Rubrik defines Subscription ARR Contribution as Subscription ARR at the end of the period less: (i) non-GAAP subscription cost of revenue and (ii) non-GAAP operating expenses for the prior 12-month period ending on that date. It believes that Subscription ARR Contribution Margin is a helpful indicator of operating leverage.