Rubrik, Inc.

Good afternoon, ladies and gentlemen, and welcome to the rubric, the first quarter fiscal year 2026 results conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on June 5th, 2025. I would now like to turn the conference over to Melissa Franke, Vice President of Investor Relations, please go ahead.

Hello, everyone. Welcome to Rubrik's first quarter fiscal year 2026 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.rubric.com. Also on this page, you'll be able to find a slide deck with financial highlights that, along with our earnings release, includes a reconciliation of GAAP to non-GAAP financial results. These measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP. During this call, we will make forward-looking statements including statements regarding our financial outlook for the second quarter and the full fiscal year 2026, our expectations regarding market trends, our market position, opportunities, including with respect to generative AI, growth strategy, product initiatives, and expectations regarding those initiatives, and our go-to-market motion. 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 other factors that could affect our performance and financial results, which we discuss in detail in our filings with SEC. Rubrik assumes no obligation to update any forward-looking statements we may make on today's call. With that, I'll hand the call over to Bipul.

Thank you, Melissa. I want to start by thanking everyone for joining us today. Our first quarter results were excellent. This quarter, we once again exceeded all guided metrics across top line and profitability. Here are five key numbers. First, subscription ARR reached approximately 1.2 billion, growing 38% year over year. Net new subscription ARR reached 89 million in the first quarter, a standout for a company at our scale. Second, our subscription revenue was 266 million, growing 54% year-over-year. Third, our subscription NRR remained strong, yet again above 120%. Fourth, customers with 100K or more in subscription ARR reached 2,381, growing 28% year-over-year. Finally, on profitability, we once again made material improvements in subscription ARR contribution margin, up over 1,800 basis points year over year. On cash generation, we are very happy to report we had over 33 million in free cash flow this quarter. This combination of top line growth and cash flow margin at our scale is rare. These outcomes are a result of a very deliberate strategy. First, we have a very differentiated product and comprehensive offering for cyber resilience. Second, we offer a true platform that enables multi-product leverage for our customers. Third, Rubrik has a unique innovation engine that delivers a steady stream of new products and solutions that lead and define the future of cybersecurity. And finally, we have a culture of long-term thinking where we continuously conceive yet unproven, bold ideas to unlock new markets. As a result, we remain confident about our opportunity, and we have raised our guidance for the year. Let me start by giving you the broader context on our market opportunity. Cyber resilience is the top cybersecurity priority. My conversations with leading CISOs and CIOs around the world point to a growing recognition that cyber breaches are inevitable in spite of significant investments they make in cyber defenses. At the same time, enterprises are looking to replatform and modernize their infrastructure in preparation for AI. In this increasingly complex environment, customers are turning to Rubrik for uniform and consistent data policy controls, as well as rapid, accurate recovery from cyber attacks. From our inception, Rubrik was designed to help customers achieve the fastest cyber recovery time. At the center of our unique architecture is the Rubrik preemptive recovery engine. Our natively integrated platform continuously and automatically scans all protected data and identities across a customer's entire IT ecosystem to pre-calculate clean recovery points. And our ability to pre-compute metadata unlocks the necessary data context and tooling needed to recover quickly from a cyber attack. Legacy backups as well as new gen backup vendors can't match this proactive capability because their solutions weren't natively built for it. And their capabilities are often bolted on from acquisitions or from third party tools. For these reasons, we win the vast majority of deals in head to head competition. Now let me talk about innovation. We continue to innovate across data security and AI vectors as we tackle more and more complex problems for our customers. Rubrik employs a unique portfolio approach to S-curves, managing innovations at different stages to maintain maximal momentum while preparing for what's next. Let me expand on that further. We live in an age of technology acceleration. Microsoft took 20 years to become a household name. Facebook two years, and ChatGPT just three months. Rapid technology changes means businesses must reorient and evolve constantly. The key to building an enduring institution in this technology era is to continuously layer concurrent S-curves. To achieve this, we use the combination of forward motion, which focuses on scaling current successes, such as our cyber-resilient data protection business, as well as Lateral Motion, which focuses on a portfolio of new initiatives to unlock future S-curves. Our Forward Motion team is expanding our cyber-resilient data protection solution across new applications and workloads, while exploring new routes to market, accelerating distribution networks, serving new customers, and expanding our value proposition within our customer base. But you can't just rely on Forward Motion to achieve sustained success. Failing to innovate could lead to eventual stagnation. In fact, we deploy a specialized team as lateral motion to discover new product market fit and launch innovative initiatives to unlock the next S-curves. We already have a track record here, as we have successfully built our M365 protection solution from a sketch to a scale business. We are using the same approach to introduce new identity resilience solutions that brings identity and data context together for the first time in the industry. Rubrik's innovation engine is powered by our unique platform architecture, one that combines data and metadata across enterprise, cloud, and SaaS applications, as well as identity providers. The Rubrik platform uniquely brings data security and cyber recovery together to deliver comprehensive cyber resilience for both data and identity. This makes us a true platform company. Let me explain further. Rubrik manages mission critical business data as the common unit of currency across the whole organization. Our platform strategy allows us to innovate faster and deliver effective solutions to critical challenges at the epicenter of data security and AI. All our solutions leverage the same underlying preemptive recovery engine to deliver risk and remediation solutions across data and identity. In fact, our customers realize more value from the Rubrik platform as they adopt more Rubrik products and solutions. This is because our platform gets smarter as we cover more of our customers' data and identity landscape. Let me detail some of the opportunities and wins across our initiatives at varying scales. If you recall, our forward motion is propelling our cyber resilient data protection business from scale to super scale. As companies shift deeper into cloud and gen AI, they choose Rubrik to deliver comprehensive cyber resilience and quicker cyber recovery times across clouds. Of the many examples, let me give you two specific wins from this quarter. The first, a major US pharmacy solutions company selected Rubrik as their cyber resilience partner for their cloud transformation. We not only replaced a longtime legacy vendor, but also out-competed a new gen vendor. Key differentiators included Rubik's clean and rapid cyber recovery, hybrid cloud scalability, and the simplicity of our Rubik's Security Cloud, or RSC platform. The customer adopted RSC Enterprise Edition, unstructured data protection, and SAS data protection for M365. This customer also combined our DSPM and identity recovery solutions for complete cyber resilience while being a design partner for our Annapurna AI product. And the second, a large European insurer chose Rubrik RSC Enterprise Edition with unstructured data protection to protect critical structured and unstructured data across cloud and enterprise environments. Rubric was chosen over competitors for our ability to meet and exceed board level cyber recovery time objectives for critical business services. This customer also noted our simplicity, cost effectiveness, and superior performance in securing significant cloud workloads. Let me shift gears and talk about four key cloud innovations that deliver differentiated product. First, we introduced code to cloud cyber resilience. As a result, we can now protect from the first line of code to the full stack of applications in production. Second, we created new purpose-built technology for advanced protection of cloud relational databases, starting with AWS RDS. Third, We expanded our cyber resilience capabilities for Google Cloud. And finally, we also introduced rubric for Oracle Cloud Infrastructure, essentially strengthening critical coverage of all four major hyperscalers. Ultimately, our differentiation in cloud protection is built on our assumed breach approach. To deliver this, we combine DSPM and cyber recovery natively on our RSC platform. which is powered by our native data threat and preemptive recovery engines to achieve complete cyber resilience. No one else does this. Now let me highlight a few customer wins with cloud and SaaS protection. This quarter, a Fortune 500 financial services company expanded its rubric deployment by adding cloud protection enterprise edition for its complete Azure environment. Our POC showed not only significantly faster recovery time, but also a 25% saving in cloud cost over three years compared to their existing cloud-native backup solution. This customer also added identity recovery for EntraID, enhancing their MC65 protection for more than 10,000 users. A global quantum computing company chose Rubrik this quarter to safeguard their vital SaaS data. Resilience and availability are crucial in their industry. Their legacy backup provider posed too many security vulnerabilities and was ill-equipped to secure cloud workloads at the speed and scale. In under two months, they transitioned to Rubrik as their unified platform, now securing critical workloads such as M365, Jira, and Salesforce. As I mentioned before, We are leveraging the lateral motion approach to scale our Data Security Posture Management, or DSPM, and identity resilience solutions. Together, these solutions help customers achieve cyber resilience by bringing identity and data context together with cyber recovery to solve cybersecurity challenges before, during, and after an attack. Let me discuss our opportunity in identity resilience. Active Directory and EntraID are the backbone of identity. for companies worldwide. However, their ubiquity makes them prime targets for attacks. Attackers go after identity infrastructure because it gives them access to all the critical data. And when identity systems are compromised, every subsequent recovery effort becomes exponentially more complex. We see a huge opportunity in securing identity. Our newly released identity recovery solution has seen notable momentum due to our unique ability to orchestrate hybrid cloud recovery across Active Directory and EntraID, all while avoiding malware reintroduction. This transforms identity recovery times from weeks to under an hour. I already mentioned a few customer wins for identity recovery, but let me add a few more. A major US hospital network added rubric identity recovery in Q1. choosing Rubrik over a standalone identity recovery competitor. This represents the customer's third expansion since their initial purchase in August of last year. Traditionally, a large U.S. estate county expanded with Rubrik to bolster its cyber resilience after a significant ransomware attack impacted a nearby county. This customer added Rubrik AD Forest Recovery and added RSC Enterprise Edition to ensure minimal disruption in the face of an inevitable cyber attack. Lastly, I'll spend a minute talking about some of our longer-term initiatives, such as Rubrik Annapurna. Rubrik Annapurna is designed to help break through the barriers preventing GenAI applications from broad-based enterprise deployment. This solution enables secure and scalable GenAI by leveraging Rubrik's unique ability to extract, manage, and secure business data, the most important real estate in GenAI. Annapurna now integrates with Google Agents Space, facilitating secure GenAI deployment on Google Cloud. We are in the early phases of optimizing product market fit for Rubrik Annapurna. We plan to add more capabilities and investments to help organizations deliver secure GenAI applications faster. As a reminder, this is a multi-year initiative to bring our GenAI solutions from zero to one and then to a scale. Just as our successes in cyber resilience was built through the years of dedicated effort and calculated market risk. In closing, I would like to share my personal gratitude. First, thank you to my fellow Rubricans Your unwavering customer focus and disciplined execution have given us an incredibly strong start to the year. As a result, we continue to win the cyber resilience market, and I believe our opportunity is bigger than ever. Also, a big thank you to our customers and partners. Your trust in us to secure your data and business pushes us to continue to define the frontiers of cybersecurity. And lastly, thank you to you, our shareholders, for your continued support and trust. We are just getting started. The best is yet to come. With that, I'm pleased to pass it over to our Chief Financial Officer, Kiran Chaudhary.