Rubrik, Inc.

Good day, everyone, and welcome to the rubric first quarter fiscal year 2025 results conference call. At this time, all participants are in a listen-only mode. Later, there will be an opportunity for a question and answer session. If you would like to register to ask a question, please press the star and 1 on your telephone keypad. and you may withdraw yourself from the queue at any time by pressing star 2. Please note today's call will be recorded and I will be standing by should you need any assistance. It is now my pleasure to turn the conference over to Melissa Franke, VP and Head of Investor Relations. Please go ahead.

Hello, everyone. Welcome to Rubrik's first quarter fiscal year 2025 financial results conference call. On the call with me today are Bipul Sinha, CEO, chairman, and co-founder of Rubrik, and Karen Chowdhury, chief financial officer. Our earnings press release was issued today after the market closed and may be downloaded from the investor relations page at www.ir.rubrik.com. Also on this page, you'll be able to find a copy of today's prepared remarks and a slide deck with financial highlights that, along with our earnings release, include the reconciliation of GAAP to non-GAAP financial results. During this call, we will make forward-looking statements, including statements regarding our financial outlook for the second quarter and full year fiscal 2025, our expectations regarding market trends, our market position, opportunity, including regarding generative AI and growth strategy, product initiatives, and expectations regarding those initiatives, and our go-to-market motions. These statements are only predictions that are based on what we believe today, and actual results may differ materially. These forward-looking statements are subject to risks and factors that could affect our performance and financial results, which we discussed in detail in our filings with the SEC, including our final prospectus filed with the SEC pursuant to Rule 424B, dated April 24, 2024. Rubrik assumes no obligation to update any forward-looking statements we make on today's webinar. With that, I'll hand the call over to Bipul.

Thanks, Melissa. And thank you, everyone, for joining us for the first quarterly earnings call as a public company. Rubrik's first fiscal quarter of 2025 was another quarter of strong and efficient growth. We finished Q1 with subscription ARR of 856 million, growing 46% year over year, and average subscription dollar-based net retention rate of over 120%. We now have 1,859 customers with over $100,000 in subscription ARR, including 114 customers with over 1 million in subscription ARR. I am pleased with our first quarter results and I believe we are well positioned to take advantage of the massive market opportunity created by explosion of data, especially by AI. I would like to thank 3000 plus rubricans who worked so hard to carry out our mission of securing the world's data and are helping to pave the way for a more secure and digital future. As this is our first earnings call, I want to share with you some context on our journey. We founded Rubrik in December 2013, and our mission is to secure the world's data. We believe that data is every organization's most valuable asset. As the world has digitized, we have seen exponential growth in data. Today's modern enterprise has massive data sprawl across multiple categories including cloud data, enterprise data, and SaaS applications. Additionally, generative AI breakthroughs have lowered the barrier to enterprise AI adoption and we believe will add another layer of growth in data that needs to be secured. This data sprawl has expanded the surface area of potential attack and has left organizations vulnerable in the face of an exponential rise in the amount and complexity of cyber attacks. According to a survey by our own rubric Zero Labs, 94% of IT and security leaders reported a significant cyber attack last year, and one-third of these victims endured at least one ransomware attack. The cybersecurity space has focused on cyber prevention strategies for the last 20-30 years, which is clearly not enough given the increasingly rampant and sophisticated attacks on the critical data. Building taller walls and wider modes cannot prevent attacks from getting to the data. On the other hand, the legacy backup and recovery solutions have been highly ineffective for cyber recovery because their architecture was built for operational recovery. They were not designed to enable reliable recovery from cyber attacks, In fact, the infrastructure of legacy backup and recovery itself is vulnerable to cyber attacks. While cyber recovery prevention strategies are important, enterprises need to assume that cyber attacks are inevitable. We believe enterprises have to have a comprehensive cyber resilience strategy to be able to quickly recover from a cyber incident and minimize operational disruption in the midst of cyber breaches and attacks. Rubrik was founded on a vision to deliver business resilience by securing the most critical asset of any organization, that is data. Our idea was to take the backup and recovery concepts and combine it with modern cybersecurity principles into a brand new software platform to deliver complete cyber resilience. At the outset, we built a unique zero trust architecture that combines data and metadata from business applications across enterprise, cloud, and SaaS applications to create self-describing data as time series. Self-describing data includes application context, user identity, data sensitivity, and application lineage. This allows us to apply artificial intelligence and machine learning directly to the business data to understand emergent data security threats and deliver cyber resilience against cyber attacks. In fiscal 2023, we introduced Ruby Security Cloud, or RFC, which provides a single platform to help enterprises secure their data across enterprise, cloud, and SaaS applications. RFC combines data protection and cyber resilience into a single cloud-native SaaS platform that detects, analyzes, and remediates cybersecurity risks and unauthorized user activities across all enterprise data states. This platform is architected to help organizations achieve cyber resilience, which encompasses cyber posture and cyber recovery. Our platform is ultimately designed to enable organizations to confidently accelerate digital transformation and leverage the cloud to realize business agility. Our unique and purpose-built Zero Trust data security approach is first of its kind and differentiates us from the alternative solutions our customers have access to. I would like to expand upon why we believe we win in the marketplace. First, our Zero Trust architecture combines backup and recovery and cybersecurity in a single software platform that significantly shrinks the tag surface that exists with legacy solutions. Our zero trust data security platform assumes that IT infrastructure will be breached and nothing can be trusted without authentication. As a result, our architecture delivers data availability that withstands adverse conditions and allows businesses to restore their data when infrastructure is attacked. We have a history of pioneering innovation as highlighted by our recent win of two Global InfoSec Awards for pioneering cyber resilience, and pioneering data security posture management. Second, our cloud-native Rubrik Security Cloud offers customers a single point of control from one user interface to secure data across disparate sources, including enterprise, cloud, unstructured data, and SaaS applications. We build products on top of Rubik's Security Cloud to address a myriad of use cases that help our customers achieve cyber resilience from hardening their data security posture to recovering from a cyber attack. As an example, we recently announced the general availability of DSPM everywhere. We believe this is the industry's only data security product suite that combines data security posture or DSPM with cyber recovery designed for complete cyber resilience. Our DSPM solution provides visibility into where all of an organization's data lives, who has access to the data, how is it being used, and sensitivity of the content, therefore reducing the risk of data exposure and exfiltration. This comes On the heels of our acquisition of Laminar, the leading DFTM company focused on the cloud. Third, we offer customers simplicity and ease of use at scale. From the beginning, we have built our platform to be easy to use from deployment to ongoing operations, even when managing complex environments at large scale. Our platform is also fully extensible with APIs that enable the integration with organizations, ecosystem of technologies and systems. This differentiated approach allows us to integrate end to end with an array of cybersecurity products, extending protection from the perimeter to the data layer. We are further enhancing our leading products by partnering with other leaders in the broader cybersecurity landscape. In Q1, we announced a new strategic partnership with CrowdStrike, which unifies rich data-centric attack context from RSC with security telemetry from CrowdStrike's Falcon XDR platform. With this partnership, enterprises gain context-rich insights, such as attack behavior and critical data being targeted. That drives accelerated detection, investigation, and recovery Organizations can unify security and IT operations and focus effort on protecting critical data. We also have a strong partnership with Zscaler, who recently awarded Rubrik as its emerging tech partner of the year. Zscaler and Rubrik partnered together to help customers secure sensitive data by combining Rubrik's data at rest intelligence with Zscaler data in motion security. We are incredibly proud of the success we have seen to date with RFC and its adoption by leading global organizations. In Q1, we continue to see a strong new logo addition as well as expansion from existing customers. Today, we have over 1,800 customers with 100,000 or more in subscription ARR up from 1,300 in the year-ago period. We secure data for many large organizations across all major verticals. But I will detail two notable new lands in the healthcare space. First is a new Fortune 50 health insurance provider with a multi-million dollar ARR transaction. After an audit found the company was unlikely to recover from a mass cyber event, its board of directors mandated the evaluation of alternatives to its existing legacy backup and recovery footprint. The company conducted a thorough proof of concept and selected rubric to address the organization's requirement to mitigate the risk and impact of a cyber attack. The customer purchased our full cyber recovery offering, which included RSC enterprise edition with cloud native protection for the company's critical data across its enterprise, private cloud, and public cloud environment. Another example in the healthcare space is a large healthcare provider who replaced their legacy backup and recovery provider after a significant ransomware attack that resulted in a lengthy outage and an inability to recover critical data. After careful evaluation with board-level visibility, this organization selected RSC Enterprise Edition with unstructured data protection to secure workload on-premises and in the cloud. The customer selected Rubrik because of our ability to address their cyber resiliency needs for both on-premises and cloud workloads from a single pane of glass. The company also purchased Rubrik data security posture management from our laminar acquisition to reduce sensitive and regulated data exposure and manage exfiltration risk across their cloud workloads. we have seen meaningful multidimensional expansion within existing customer accounts. Our average subscription dollar-based net retention rate in Q1 was over 120%. As customers increase the data they secure with us, adopt new workloads and applications secured with Rubrik, and upgrade their subscription to higher-valued editions. This quarter, we saw a seven-figure upgrade and expansion deal at a large agricultural organization. This organization upgraded from our Foundation Edition to the Enterprise Edition with unstructured data protection, noting rubric anomaly detection and threat monitoring as significant value drivers. This organization also expanded their use of rubric cloud native protection to secure their large cloud data footprint and to save cost relative to cloud native data. In addition to our continued success, we also want to highlight our future growth opportunities and areas of strategic focus. We believe there is a large and growing market opportunity for our RSC platform as more customers move their applications and data to the cloud and as generative AI amplifies demand for securing unstructured data. We plan to continue to invest in the development of RSC and in our accompanying go-to-market motion to capitalize on this opportunity. We have a history of innovating with disruptive technology, and we intend to continue to make significant investments in research and development to further increase our product differentiation. This includes new data security functionality, the continued expansion of applications secured by rubrics, and generative AI applications that will help organizations achieve business resilience and improve productivity. Now let me address the area we are focused on from the go-to-market perspective. As a quick background, we sell our subscription offerings into the mid-enterprise and above through our channel partners. At the high end, our field sales work with regional and global system integrators. At the lower end of our market, we use inside sales and value-added resellers. We are focused on growing our customer base. We believe any organization with any application and data of any significance is a potential rubric customer. As cyber attacks increase in scale and sophistication, amidst accelerated digitization and ever-evolving data regulation, organizations are rethinking how to secure data across the entirety of their topologies. We continue to invest in customer acquisition to meet the growing needs of these organizations seeking to achieve data security. We are also focused on expansion within our existing customer base by continuing to move customers to our more premium subscription edition and by covering additional scale and scope of data managed, particularly as cyber resilience is a growing focus in cloud and SaaS environments. We continue to refine our go-to-market to accelerate cross-sell of our newer solutions, such as DSPM, and newer application footprint in SaaS and in the cloud. Lastly, we believe we have a substantial international opportunity as international organizations struggle with the same data protection and security challenges that we are currently solving for our U.S. customers. We plan to continue to expand our global footprint into existing and new international markets. We generated approximately 32% of our total revenue in fiscal 2024 from customers outside of the US, which highlights the room for growth. In closing, I would like to thank all Rubricans, our customers, partners, and investors for their support and dedication in helping us achieve the important milestone of becoming a public company and being partners on our journey ahead. We are proud of our mission of securing critical business data, enabling enterprises to remain resilient in the face of cyber attacks and helping them accelerate their digital transformation. Our Zero Trust architecture is unique and positions us as a differentiated leader in a large marketing transition and filled with legacy incumbents. Our strong Q1 results highlight this exciting market opportunity, our multiple drivers of growth, and our strong go-to-market execution, key components to building an enduring company. We are on a mission to secure the world's data, and we are just getting it started. With that, I will now turn the call over to Kiran to review our financials. Kiran.