Rubrik, Inc.

Hello, everyone. Thank you for joining us and welcome to the rubric first quarter fiscal year 2027 results conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Melissa Franke, Vice President of Investor Relations. Please go ahead.

Hello, everyone. Welcome to Rubrik's first quarter fiscal year 2027 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 slide deck with financial highlights that, along with our earnings release, includes the 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 full fiscal year 2027, our expectations regarding market trends our market position, opportunities, including with respect to generative and agentic AI, growth strategy, product initiatives, and expectations regarding those initiatives, and our go-to-market motions. These statements 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. Rubric 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 Bipol.

Thank you, Melissa, and thank you all for joining us today. We are off to a strong start to fiscal 2027 with a record Q1. I'm proud to announce that we have once again exceeded all guided metrics across top line and profitability. Here are the five key numbers. First, subscription ARR reached 1.57 billion, growing 32% year-over-year. Second, our subscription revenue was 374 million, growing 41% year-over-year. Third, our subscription NRR remained strong at approximately 120%. Fourth, Customers with 100K or more in subscription ARR reached 2,946, growing 24% year-over-year. And finally, on profitability, we once again made material improvement in subscription ARR contribution margin, up over 500 basis points year-over-year. We generated 74 million in free cash flow this quarter. Let me start with a few observations. We are now in a new era of cybersecurity. Today, AI agents are attacking us. These autonomous agents can intrude, breach, and encrypt at machine speed. Mythos was a powerful wake-up call for the cybersecurity industry, but it is already something of the past. Better, faster model versions are already in development. Mythos has proven that attack detection is near impossible. And cyber resilience is now the most fundamental cybersecurity requirement for the AI era. In fact, Mythos is driving more customer conversations around cyber resilience and recovery. And that is one of the reasons why we have raised our top-line guidance for the rest of the year. And at the same time, AI agents are increasingly running business processes. workflows that assume identities, access sensitive data, and take autonomous action. Once compromised, these agents can potentially inflict 10 times more damage in 1 tenth of the time. As you can see, both threat actors and business operators are now agentic. This is not about instilling fear. This is about helping institutions be better prepared and putting every effort in staying ahead of the new cyber risk that could dramatically affect their operations. As I mentioned before, in this new cyber reality, prevention and detection are no longer enough. What you will need in addition is preemptive risk assessment, real-time guardrails, and machine speed system remediation. In short, agentic cyber resilience. Rubrik has led in cyber resilience for years, delivering machine speed cyber recovery for thousands of businesses around the world. That work helped us build for AI agents and have full awareness that technology leaps like mythos were on their way. While this may seem grim, we believe Rubrik is and will continue to be the answer to helping institutions stay ahead. Along these lines, Rubrik recently joined Anthropix Project GlassWing and received early access to the Claude Mithos Research Preview, putting the new model to work directly to ensure we can serve our customers better when cyber breaches inevitably happen. This partnership aligns to our vision of agentic cyber resilience defending a world where AI agents are both the cyber attacker as well as the business executor. It is clear that cyber resilience is now the most fundamental cybersecurity strategy for the agentic era. Let me talk about why our products are transformative. We are a multi-product company built on a unique and differentiated platform that solves the most consequential problems across data identity and ai on top of this platform we deliver two solution suites rubric security cloud for cyber resilience and rubric agent cloud for trusted accelerated ai transformation let me start with rubric security cloud or rsc Our platform has the unique ability to bring together time series data and metadata across complex enterprise environments spanning on-premises, sovereign, cloud, SaaS, and identity providers. We believe our depth and breadth of enterprise context is unmatched by other solutions in the marketplace. This architectural advantage allows us to deliver our proprietary preemptive recovery engine, which continuously pre-calculates clean points of recovery across data and identity before an attack occurs. The preemptive recovery engine is the backbone of rubric agentic cyber resilience. Our RSC platform orchestrates resilience continuously and proactively, not reactively, post-breach. This is how we deliver record fast recovery when our customers are breached or agents get compromised. And this is why we continue to grow while the competition has stalled. There are many examples I can talk about, but let me just share two specific customer examples of legacy replacement in very large enterprises. First, a large UK public sector organization chose Rubrik this quarter to fully displace a decade-long legacy incumbent across on-premises, cloud, NAS, and identity workloads. Out-competing several legacy and new-gen vendors, Rubrik was recognized for delivering comprehensive cyber resilience across every workload. With Rubrik, this customer can consolidate a fragmented environment of 400 plus legacy backup policies into a single unified platform. Second, a global 2000 insurer chose Rubrik this quarter to displace a legacy incumbent and native cloud backup across their full enterprise footprint, including on-premises and cloud workloads. Rubric was selected for our single pane of glass across all key workloads and for our ability to deliver demonstrable cyber recovery readiness, unmatched by incumbent and competitive alternatives. The cyber resilience market is consolidating around platforms, not point solutions. When CIOs and CISOs rationalize their vendor portfolios, Rubric wins because we deliver complete cyber resilience across on-premises, sovereign, cloud, SaaS, and identity in a single unified architecture. This is because Rubric is built on the principle of complementary network effects. What that means is every new product we build makes every other product on the platform more powerful. So when a customer adopt Rubrik, they are not just buying a solution, they are stepping into an ecosystem. For example, when a Rubrik data protection customer adopts Rubrik's identity resilience product, they not only achieve cyber resilience across data and identity, but also gain a complete understanding of the blast radius and characteristics of a cyber attack across data and identity through the Rubrik platform. This is the additional platform value. Customers do not simply use Rubrik. They rely on it to deliver resilient, minimal viable business. And the more they use it, the more indispensable it becomes. That is the value creation that endures. Now let's talk about our identity business. Our identity solutions continue to gain momentum as the rise in identity-based attacks has increased the need to protect both data and identity simultaneously. Identity continues to be highly successful in garnering budgets from CISOs, extending rubric beyond our traditional CIO and CTO buying personas. We have been rapidly disrupting the identity protection market with our identity recovery and resilience products. In fact, our identity business grew 38% sequentially quarter over quarter to reach over 50 million in subscription ARR in Q1. Let me give you a representative identity event. A large US agricultural organization and existing Rubrik customers expanded into identity resilience this quarter. They added ANTRA ID and Okta protection after a ransomware attack on their Active Directory environment. That attack created significant operational downtime and financial loss while also exposing critical cyber resilience gaps. The customer chose Rubrik's identity resilience as the cornerstone of their Identity Modernization Initiative. Now, let's talk about how Rubric accelerates trusted AI transformation with Rubric Agent Cloud. As we have said before, while agents promise 100 times more productivity, they also introduce 100 times more risk. Agents breaking existing controls, agents tricked into leaking confidential information, agents deleting entire code bases, These kinds of events are becoming more common. If agents assume your identity, access your sensitive data, and take real-world action, who governs them? It's clear that while AI gives you a better, faster car, you need an intelligent autonomous driving system for control to steer, change lanes, and brake safely. We believe enterprises need a comprehensive AI operations platform that can dynamically monitor, control, and remediate agentic actions. You need to have visibility into what agents, sanctioned or unsanctioned, exist in your environment and what they are doing. You also need real-time guardrails to dynamically authorize agentic interactions that comply with your company's policies and industry regulations. If agents get compromised or hallucinate, then you need a rewind button to undo destructive actions. That is why we designed Rubric Agent Cloud, the comprehensive AI operations platform. This is the intelligent autonomous driving system that we provide so customers can safely drive fast with AI agents. Our predi-based acquisition, which developed A LLM fine-tuning and inference-serving platform provides the AI firepower required to dynamically govern agentic interactions. This technology underpins our semantic AI governance engine, or SAGE, which is the industry's first AI governance engine purpose-built to guardrail autonomous agents in real time. By leveraging AI to control agentic work, Agents can't leak sensitive data, can't say the wrong thing, and can't take the wrong action. AI controlling AI agents is key. We believe that understanding intent is critical to controlling probabilistic agents at scale. In just one quarter of selling, we are already seeing early POCs convert to production deployments. The next example is a critical evidence of the customer interest in this product. A US financial services firm, an existing Rubrik customer, committed to Rubrik Agent Cloud this quarter, moving from AI experimentation to full production deployment across AWS Bedrock and Microsoft Co-Pilot. The customer chose RAC for its unified visibility and monitoring of AI agents across all platforms. policy-based guardrail controls, and ability to rewind and remediate agent actions, which they identified as the essential capability for scaling AI safely in a regulated environment. In closing, I leave you with three takeaways. First, Rubrik is winning the cyber resilience market across data and identity. In the age of mythos and frontier AI models, Cyber resilience is paramount for cybersecurity, which is why thousands of customers rely on our unique architecture and platform depth. Second, we continue to grow while the competition has stalled. Our unique solution at the convergence of data, identity, and AI positions us to solve cyber resilience across all three domains. Third, we are establishing rubrics as the data and identity infrastructure platform for the AI era, with a platform for agentic operation and resilience that no competitor can match. While the world is going through the AI transformation, we are steadfast in helping our customers embrace that transformation with a greater degree of confidence. That is why we are extremely optimistic about the future of Rubrik. Having said that, Thank you to all our shareholders for your trust. We are just getting started in this new era. We look forward to seeing some of you at our analyst day on June 10th in Las Vegas, where we'll unpack our vision for a genetic cyber resilience. And lastly, to the entire rubric team, thank you. Your work made these results possible. I couldn't be happier with our first quarter results, and I'm excited about what's ahead. With that, I'm pleased to pass it to our Chief Financial Officer, Kiran Chaudhary. Thank you, Bipol.