www.linkedin.com\/in\/bipulsinha<\/a>) as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.<\/p>\nForward-Looking Statements<\/b><\/p>\n
\nThis press release and the related conference call contain express and implied \u201cforward-looking statements\u201d within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Rubrik\u2019s financial outlook for the third quarter of fiscal year 2027 and full fiscal year 2027, Rubrik\u2019s market position, market opportunities, including with respect to generative and agentic AI, and growth strategy, Rubrik\u2019s ability to drive operating leverage and profitability, Rubrik\u2019s platform vision and strategic positioning, product initiatives, strategic partnerships and alliances, go-to-market motions and market trends. In some cases, you can identify forward-looking statements by terms such as \u201canticipate,\u201d \u201cbelieve,\u201d \u201cestimate,\u201d \u201cexpect,\u201d \u201cintend,\u201d \u201cmay,\u201d \u201cmight,\u201d \u201cplan,\u201d \u201cproject,\u201d \u201cwill,\u201d \u201cwould,\u201d \u201cshould,\u201d \u201ccould,\u201d \u201ccan,\u201d \u201cpredict,\u201d \u201cpotential,\u201d \u201ctarget,\u201d \u201cexplore,\u201d \u201ccontinue,\u201d \u201coutlook,\u201d \u201cguidance,\u201d or the negative of these terms, where applicable, and similar expressions intended to identify forward-looking statements. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond Rubrik\u2019s control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the statements. Risks include but are not limited to Rubrik\u2019s limited operating history, the growth rate of the market in which Rubrik competes, Rubrik\u2019s ability to effectively manage and sustain its growth, Rubrik\u2019s ability to introduce new products on top of its platform, Rubrik\u2019s ability to compete with existing competitors and new market entrants, Rubrik\u2019s ability to effectively manage the leadership transition in its global revenue organization, Rubrik\u2019s ability to expand internationally, its ability to utilize AI successfully in its current and future products, Rubrik\u2019s ability to successfully integrate acquisitions into its business and operations, and international conflict, global security concerns and their potential impact on regional and global economies and supply chains. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption \u201cRisk Factors\u201d and elsewhere in our filings with the Securities and Exchange Commission, including in our Annual Report on Form 10-K for the fiscal year ended January 31, 2026 and subsequent filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date the statements are made and are based on information available to Rubrik at the time those statements are made and\/or management\u2019s good faith belief as of that time with respect to future events. Rubrik assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.<\/p>\n
Non-GAAP Financial Measures<\/b><\/p>\n
\nRubrik has provided in this press release financial information that has not been prepared in accordance with GAAP. Rubrik uses these non-GAAP financial measures internally in analyzing its financial results and believes that use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing Rubrik\u2019s financial results with other companies in its industry, many of which present similar non-GAAP financial measures.<\/p>\n
\nNon-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with Rubrik\u2019s condensed consolidated financial statements prepared in accordance with GAAP. A reconciliation of Rubrik\u2019s historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.<\/p>\n
Free Cash Flow and Free Cash Flow Margin<\/b>. Rubrik defines free cash flow as net cash provided by operating activities less cash used for purchases of property and equipment and capitalized internal-use software. Rubrik believes free cash flow is a helpful indicator of liquidity that provides information to management and investors about the amount of cash generated or used by Rubrik\u2019s operations that, after the investments in property and equipment and capitalized internal-use software, can be used for strategic initiatives, including investing in Rubrik\u2019s business and strengthening its financial position. One limitation of free cash flow is that it does not reflect Rubrik\u2019s future contractual commitments. Additionally, free cash flow is not a substitute for cash provided by operating activities and the utility of free cash flow as a measure of Rubrik\u2019s liquidity is further limited as it does not represent the total increase or decrease in Rubrik\u2019s cash balance for a given period. Free cash flow margin is calculated as free cash flow divided by total revenue.<\/p>\n
Non-GAAP Subscription Cost of Revenue<\/b>. Rubrik defines non-GAAP subscription cost of revenue as subscription cost of revenue, adjusted for amortization of acquired intangibles, stock-based compensation expense, stock-based compensation included in amortization of capitalized internal-use software, and other non-recurring items.<\/p>\n
Non-GAAP Operating Expenses (Research and Development, Sales and Marketing, General and Administrative).<\/b> Rubrik defines non-GAAP operating expenses as operating expenses (research and development, sales and marketing, general and administrative), adjusted for, as applicable, stock-based compensation expense, and other non-recurring items.<\/p>\n
Non-GAAP Gross Profit, Non-GAAP Operating Income (Loss), and Non-GAAP Net Income (Loss).<\/b> Rubrik defines non-GAAP gross profit, non-GAAP operating income (loss), and non-GAAP net income (loss) as the respective GAAP measure, excluding, as applicable, the effect of amortization of acquired intangibles, stock-based compensation expense, stock-based compensation included in amortization of capitalized internal-use software, amortization of debt issuance costs, other non-recurring items, and the related income tax effect of these adjustments.<\/p>\n
Non-GAAP Gross Margin.<\/b> Rubrik defines non-GAAP gross margin as non-GAAP gross profit as a percentage of total revenue.<\/p>\n
Non-GAAP Net Income (Loss) Per Share, Basic and Diluted<\/b>. Rubrik defines non-GAAP net income (loss) per share, basic as non-GAAP net income (loss) divided by the weighted-average number of shares of common stock outstanding during the period. Our non-GAAP net income per share, diluted is defined as non-GAAP net income divided by the non-GAAP weighted-average number of diluted shares outstanding, which includes (a) the effect of all potentially dilutive common stock equivalents (stock options, restricted stock units, restricted stocks, employee stock purchase rights under our 2024 Employee Stock Purchase Plan), and (b) the potential dilutive effect of the shares issuable upon conversion of our convertible senior notes using the if-converted method.<\/p>\n
Subscription Annual Recurring Revenue (\u201cARR\u201d) Contribution Margin<\/b>. 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. Rubrik believes that Subscription ARR Contribution Margin is a helpful indicator of operating leverage. One limitation of Subscription ARR Contribution Margin is that the factors that impact Subscription ARR will vary from those that impact subscription revenue and, as such, may not provide an accurate indication of Rubrik\u2019s actual or future GAAP results. Additionally, the historical expenses in this calculation may not accurately reflect the costs associated with future commitments.<\/p>\n
Key Business Metrics<\/b><\/p>\n
Subscription ARR. <\/b>Rubrik calculates Subscription ARR as the annualized value of our active subscriptions as of the measurement date, based on our customers\u2019 total contract value, and assuming any contract that expires during the next 12 months is renewed on existing terms. Subscriptions include offerings for our RSC platform and related data security SaaS solutions, term-based licenses for our RSC-Private platform and related products, prior sales of CDM sold as a subscription term-based license with associated support and related SaaS products, subscription service offering and standalone sales of our SaaS subscription offerings like Anomaly Detection and Sensitive Data Monitoring. Net new Subscription ARR refers to the difference between Subscription ARR in the reported period and Subscription ARR in the prior quarter, and captures new logos and expansions, offset by contraction and attrition since the prior quarter.<\/p>\n
Cloud ARR.<\/b> Rubrik calculates Cloud ARR as the annualized value of our active cloud-based subscriptions as of the measurement date, based on our customers\u2019 total contract value, and assuming any contract that expires during the next 12 months is renewed on existing terms. Our cloud-based subscriptions include RSC and RSC-Government (excluding RSC-Private). Cloud ARR also includes SaaS subscription offerings like Anomaly Detection and Sensitive Data Monitoring, which are sold standalone or with prior sales of term-based license offerings of CDM. Net new Cloud ARR refers to the difference between Cloud ARR in the reported period and Cloud ARR in the prior quarter, and captures new logos and expansions, offset by contraction and attrition since the prior quarter.<\/p>\n
Average Subscription Dollar-Based Net Retention Rate.<\/b> Rubrik calculates Average Subscription Dollar-Based Net Retention Rate by first identifying subscription customers (\u201cPrior Period Subscription Customers\u201d) which were subscription customers at the end of a particular quarter (the \u201cPrior Period\u201d). Rubrik then calculates the Subscription ARR from these Prior Period Subscription Customers at the end of the same quarter of the subsequent year (the \u201cCurrent Period\u201d). This calculation captures upsells, contraction, and attrition since the Prior Period. Rubrik then divides total Current Period Subscription ARR by the total Prior Period Subscription ARR for Prior Period Subscription Customers. Rubrik\u2019s Average Subscription Dollar-Based Net Retention Rate in a particular quarter is obtained by averaging the result from that particular quarter with the corresponding results from each of the prior three quarters.<\/p>\n
Customers with $100K or More in Subscription ARR.<\/b> Customers with $100K or more in Subscription ARR represent the number of customers that contributed $100,000 or more in Subscription ARR as of period end.<\/p>\n
About Rubrik<\/b><\/p>\n
\nRubrik (NYSE: RBRK), the Security and AI Operations Company, leads at the intersection of data protection, cyber resilience, and enterprise AI acceleration. Rubrik Security Cloud delivers complete cyber resilience by securing, monitoring, and recovering data, identities, and workloads across clouds. Rubrik Agent Cloud accelerates trusted AI agent deployments at scale by monitoring and auditing agentic actions, enforcing real-time guardrails, fine-tuning for accuracy and undoing agentic mistakes.<\/p>\n
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