The cybersecurity leader is helping to defend against rogue AI agents.
Shares of Rubrik (RBRK +22.49%) rocketed 22% higher on Friday after the data security specialist delivered impressive growth metrics.
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Business is booming
Rubrik’s revenue rose 48% year over year to $350 million in the third quarter. The company’s subscription annual recurring revenue (ARR) leaped 34% to $1.35 billion, as the number of customers with ARR of $100,000 or more increased 27%.
The cybersecurity provider is benefiting from the trend toward artificial intelligence (AI)-powered solutions.
“As the AI transformation unfolds, organizations worldwide are turning to Rubrik to ensure their businesses remain secure and AI ready,” CEO Bipul Sinha said in a press release.
Today’s Change
(22.49%) $15.84
Current Price
$86.27
Key Data Points
Market Cap
$17B
Day’s Range
$84.33 – $90.26
52wk Range
$47.35 – $103.00
Volume
17M
Avg Vol
3.9M
Gross Margin
81.25%
Dividend Yield
N/A
Better still, Rubrik is growing more profitable as it scales its operations. Its gross margin improved to 80.5% from 76.2% in the prior-year quarter.
Rubrik’s net loss per share, in turn, narrowed to $0.32 from $0.71. Moreover, the company posted positive adjusted earnings — which exclude stock-based compensation and other charges — of $0.10 per share. Wall Street had expected an adjusted loss of $0.17 per share.
Best of all, Rubrik’s cash generation continued to strengthen. The cyber guardian’s free cash flow rose nearly fivefold to $76.9 million.
Rubrik sees more AI-fueled gains ahead
Management guided for full-year revenue of $1.28 billion and free cash flow of $194 million to $202 million.
“We are committed to leading and pioneering new advancements at the intersection of data protection, cyber resilience, and enterprise AI acceleration,” Sinha said.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rubrik. The Motley Fool has a disclosure policy.
