Rubrik, Inc.

Good afternoon, ladies and gentlemen, and welcome to the rubric third quarter fiscal year 2026 results conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct the question and answer session. If at any time during this call you require immediate assistance, please press bar zero for the operator. This call is being recorded on Thursday, December 4th of 2025. I would now like to turn the conference over to Melissa Franke, VP, Head of Investor Relations. Please go ahead.

Hello, everyone. Welcome to Rubrik's third 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.ruberk.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 fourth quarter and full fiscal year 2026, our expectations regarding market trends, our market position, opportunities, including with respect to generative AI, growth strategies, 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 other factors that could affect our performance and financial results, which we discuss in detail in our filings with the 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 Bitful.

Thank you, Melissa, and thank you all for joining us today. Let me start by saying our third quarter results were exceptional. Every quarter for the past several quarters, we have successfully delivered, in many cases, record numbers. In fact, this quarter has been our best ever. We have not only added record net new subscription ARR, but also generated tremendous free cash flow. And I'm happy to report we once again exceeded all guided metrics across top line and profitability. Here are five key numbers. First, subscription ARR reached 1.35 billion, growing 34% year over year. Net new subscription ARR reached a record 94 million. Second, our subscription revenue was 336 million growing 52% year-over-year. Third, our subscription NRR remained strong, once again, above 120%. Fourth, customers with 100K or more in subscription ARR reached 2,638, growing 27% year-over-year. And finally, On profitability, we once again made material improvement in subscription ARR contribution margin up about 1400 basis points year over year. We generated a record 77 million in free cash flow this quarter. This combination of top line growth and cash flow margin at our scale is best in class. We remain confident about the opportunity ahead And thus, we are again raising our outlook for the year. But let me begin by providing some additional context on our market opportunity as well as our areas of focus. Our mission is to lead Rubrik into our next era as the, let me repeat, the security and AI operations company. My discussions with IT and security leaders consistently reveal and assume breach mentality, which means being prepared for the inevitable reality that every enterprise will face a successful cyber breach. This preparation includes two things. First, understanding the risk of a cyber breach in terms of both data content and identities. And second, the ability to remediate and recover from the breach to ensure business continuity. But the landscape in which these threats occur has dramatically evolved. Organizations are now facing a new cyber landscape, with AI potentially enabling threat actors to inflict 10x more damage in one-tenth of the time. Alongside these challenges, enterprises are also focused on modernizing their infrastructure in anticipation of the impending enterprise AI transformation. While AI presents 100 times more risk, the AI transformation promises 100 times more opportunities, much like every big generational shift in enterprise technology. When cloud redefined IT, Rubric ensured simple and reliable recovery. When cyber threats surged, we extended our Rubric Security Cloud product suite across data and identity to deliver true cyber resilience. Now, with the rise of AI agents, a new transformation is underway. AI transformation presents unique challenges. An agent operates within an organization's environment runs business processes, assumes identity, touches critical data, and impacts mission-critical applications at unprecedented speed and scale. These agents are effectively superhuman. But organizations don't yet have the guardrails to monitor and contain what they do. We need to think about AI agents very differently. Through this AI transformation, Rubrik's mission and strategy remains the same to accelerate our customer's journey to AI enterprise. I will delve deeper into our AI agent innovations later in my remarks. As companies shift deeper into cloud and AI, customers continue to turn to Rubrik for complete cyber resilience, which includes two key set of capabilities. First, consistent data and identity security policy controls. And second, rapid and accurate recovery from cyber attacks. While we believe we have a tremendous opportunity in enterprise AI acceleration, we continue to focus on and win the vast cyber resilience market, which includes our core data protection solutions and identity resilience. Let me provide some more details across our three businesses, data protection, identity resilience, and AI operations. Our cyber resilient data protection journey remains in its early stages, particularly as data availability and security become the most crucial element for AI. We continue to add new solutions across data center, cloud and SAS workloads, leveraging the same underlying preemptive recovery engine to deliver complete risk and remediation capabilities. Our unique architecture consistently enables us to outperform both legacy and new gen backup vendors. In fact, In the third quarter, bookings from legacy replacements accelerated year on year, surpassing the growth rate seen in the first half of the year. Let me provide two specific examples of legacy replacements in very large enterprises. First, one of the largest banks in Asia and worldwide selected Rubrik as their strategic cyber resilience partner, replacing a long-standing legacy vendor. We out-competed several new gen backup vendors for this opportunity. Rubrik's platform now provides data protection across its data center and cloud workloads for mission-critical applications. The customer also chose the Rubrik identity recovery solution for over 250,000 users. And the second, a Fortune 250 professional services firm selected Rubrik to displace its 15-year legacy backup vendor. Rubrik again out-competed several new gen competitors for this opportunity. Rubrik will provide a unified cyber resilience platform across the customer's rapidly evolving hybrid and multi-cloud environments. Let me now talk about the momentum we are seeing in cloud protection. When a sophisticated cyber attack inevitably occurs, Organizations need to recover quickly and seamlessly, which is difficult across multiple workloads, tools, and interfaces. Rubric Security Cloud delivers complete cloud and SaaS protection from a single platform that understands the relationship among data, applications, and identities, regardless of where they live. We continue to build upon our Code2Cloud cyber resilience offerings, which delivers protection from the first line of code to full stack application in production across the major hyperscalers. For example, we recently announced Rubik DevOps protection for Azure DevOps and GitHub. This new solution is designed to ensure our customers' most valuable intellectual property and development pipeline are protected and preserved. Now, let me illustrate our momentum in cloud protection with two specific customer wins. A health and wellness technology company chose Rubrik cloud protection to protect a multi petabyte mission critical workload containing user data. Rubrik offered not only cyber resilience, but also a significant cost reduction compared to cloud native backup solutions due to our unique platform. With Rubrik, this customer can confidently meet their minimal viable business plans with our immutable and secure data protection solution. And second, a Fortune 150 biopharmaceuticals company is trending their partnership with Rubrik this quarter by adding cloud protection for its multi petabyte public cloud data estate. We not only replaced native backup solutions, but also out-competed new gen vendors. Rubrik was selected due to the strength of our cyber resilience capabilities, as well as lower TCO with an estimated 30% annual cost savings. Next, let's talk about our identity business. As we have discussed, our comprehensive identity resilience platform uniquely combines identity posture and recovery with the data security posture management or DSPM to deliver complete identity risk and remediation solutions. Our identity line of business has been highly successful in garnering budget from CISOs. extending rubric beyond our traditional CIO and CTO buying personas. This business has achieved significant momentum in just over three quarters of the first general availability, reaching about 20 million in subscription ARR. In Q3 alone, we more than doubled the total number of identity customers. In fact, 40% of those identity customers added in the third quarter were net new to Rubrik. As you might recall, we started our identity journey with the release of Identity Recovery, which provides the rapid recovery of identity services following cyber attacks or operational failures to minimize business disruption. This quarter, we announced support for Okta Identity. making Rubrik the only identity recovery solution to support Okta, Active Directory, and ANTRA ID recovery. We also announced a new identity integration with CrowdStrike this quarter. With this integration, our customers can not only detect identity threats in real time with Falcon Next-Gen Identity Security, but also surgically roll back malicious changes and restore their identity system to a safe operational state with Rubrik Security Cloud. CISOs are increasingly turning to Rubrik for a more comprehensive identity strategy. This quarter, we launched Rubrik Identity Resilience, a higher tier edition above Identity Recovery. This solution monitors and protects both human and non-human identities, tracks misconfigurations, and high-risk or malicious changes within Active Directory and ANTRA ID. It also enhances risk posture and accelerates cyber recovery by linking identity-based information such as privileged access with rubrics DSPMs, sensitive data context, and activity. In just one quarter of selling, we closed 65 deals for identity resilience. This early momentum makes us very excited about what's ahead for identity resilience. Let me share two illustrative customer wins. A UK government agency added identity resilience for its large user base alongside cloud data protection for Azure and AWS as they sought to bolster resilience for critical national infrastructure amid rising cyber attacks in the UK. This agency also consolidated several disparate tools with the Rubrik platform and replaced native cloud backup solution, which proved unescalable for the customer's massive and complex data state. And second, a US state agency turned to Rubrik this quarter after the rise of cyber attacks on governments nationwide. And in particular, after a recent incident that impacted a critical state agency. Seeking to bolster its cyber strategy and reduce recovery times, the agency chose Rubric Identity Resilience and M365 protection for 100,000 users, replacing their native cloud protection and traditional data center identity backup. With Rubric, cyber recovery times will move to mere hours compared to months with the incumbent solution. Lastly, I will talk about our innovations in the AI space. As I mentioned earlier, agentic AI can unlock significant new efficiencies for every organization. but it also introduces considerable risks, including threats by bad actors and the issue of hallucinations. To help accelerate AI transformation, we recently launched Rubric Agent Cloud or RSE, a new product suite that enables enterprises to deploy AI agents safely and confidently at a scale. With the release of Rubric Agent Cloud, Rubrik now operates two complementary product suites built on the same Rubrik platform, which combines application, data, and identity contexts across all enterprise workloads. First, Rubrik Security Cloud for cyber resilience and accelerated cloud adoption. And second, Rubrik Agent Cloud for AI resilience and accelerated AI agent adoption. Our competitive advantage is Rubik's core platform that sits in the center of data application and identity. Following the acquisition of Prediway's last quarter, we now have agent context in the mix as well. Together, this forms Rubik Agent Cloud, the first integrated enterprise control layer for managing the AI agent lifecycle. RHC answers the three most critical questions currently facing every CIO and CISO. Number one, what agents do I have and what are their capabilities and activities? Number two, what data are these agents allowed to access and are they operating within the enterprise guardrails? And number three, if something goes wrong, Can I undo it? RSE provides organization with the ability to answer these questions through its core capabilities, namely agent monitoring, agent governance, and full agent remediation. This includes rubric agent rewind, which we announced last quarter. Agent rewind helps customers undo the mistakes of AI agents, which is crucial for scalable and secure AI adoption. We also recently announced that Rubik Agent Cloud will integrate with Microsoft Co-Pilot Studio and AWS Bedrock. As we have said previously, we are still in the initial phase of a multi-year effort to scale Rubik's AI solutions. Rubik Agent Cloud is currently in beta but we are very excited about the early customer enthusiasm. Looking ahead, we plan to expand our capabilities and investments to enable confident enterprise AI transformation and agentic work adoption. In closing, I would like to share my gratitude to my fellow Rubricans. Rubric continues to win the cyber resilience market And at the same time, we are defining the AI enterprise future. Rubicon's collective focus and disciplined execution always inspire me. Also, I extend my sincere gratitude to our customers and partners. Your confidence in us motivates our continuous effort to lead and shape the future of cybersecurity and enterprise AI. And lastly, of course, thank you to you, our shareholders, for your continued support and trust. A number of you have mentioned to me the consistency with which we have been delivering the beat and raise cadence since our IPO. This is true. We have done so quarter after quarter. We are confident in closing out this year strong and continuing our great momentum into the next year and beyond. With that, I am pleased to pass it over to our Chief Financial Officer, Kiran Chaudhary.