Rubrik (RBRK) Stock: AI Demand Fuels Surprise Profit and Strong Revenue Beat

TLDR

• Rubrik stock jumped 16% after-hours following Q3 earnings that beat expectations with revenue of $350.2 million, up 48% year-over-year
• The company reported a surprise profit of $0.10 per share versus analyst expectations of a $0.17 loss per share
• Subscription ARR grew 34% to $1.35 billion, driven by increased AI-fueled demand for data security solutions
• Full-year revenue guidance raised to $1.28 billion, exceeding Wall Street’s $1.23 billion estimate
• The customer base with over $100K in subscription ARR expanded 27% year-over-year

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Rubrik stock surged 16% in after-hours trading Thursday after the data security company delivered a surprise profit and raised its full-year outlook. The results caught Wall Street off guard as the company continues to benefit from the AI boom.

Rubrik, Inc., RBRK

The company reported earnings per share of $0.10 for the third quarter. Analysts had expected a loss of $0.17 per share. A year ago, Rubrik posted a loss of $0.21 per share in the same quarter.

Revenue came in at $350.2 million, up 48% from last year. Analysts had projected $320.51 million. The beat marks another quarter of strong growth for the security and AI operations company.

Subscription Revenue Climbs

Subscription ARR reached $1.35 billion by the end of October. That’s a 34% increase from the prior year. The metric represents predictable income from annual subscriptions and contracts.

The company’s customer base continues to expand. Customers with over $100K in subscription ARR grew 27% year-over-year. This shows businesses are willing to spend more on Rubrik’s data protection services.

Rubrik’s gross margin showed improvement during the quarter. The company also cut its net loss compared to the previous year. Cash and short-term investments stood at $1.60 billion at the end of October.

Guidance Exceeds Expectations

For the fourth quarter, Rubrik expects revenue between $341 million and $343 million. Wall Street had estimated $325.06 million. The company projects an adjusted loss per share of $0.10 to $0.12, better than the $0.13 loss analysts expected.

The full-year outlook got a boost as well. Rubrik now expects subscription ARR between $1.439 billion and $1.443 billion. Revenue guidance sits at $1.28 billion to $1.282 billion, above the consensus estimate of $1.23 billion.

The company lowered its expected full-year loss. Adjusted net loss per share is now projected at $0.16 to $0.20. Analysts had estimated a loss of $0.49 per share.

Rubrik launched new products during the quarter. These include Rubrik Agent Cloud and Rubrik Okta Recovery. The company also expanded partnerships with CrowdStrike and Cognizant.

The data security firm operates in the cyber resilience and enterprise AI acceleration space. Its solutions help companies protect and manage data across various platforms.

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