Count Rubrik (RBRK) as another software play not seeing a slowdown in business at the hands of March’s market volatility.
“We see continued strong demand,” Rubrik co-founder and CEO Bipul Sinha told me on Yahoo Finance on Friday. Sinha’s comments echo those of DocuSign CEO Allan Thygesen to Yahoo Finance earlier this morning.
Sinha added, “We are confident in delivering on our full-year goals.”
Shares of the cybersecurity firm priced its April 2024 IPO at $32, above the high end of their expected range. The stock opened for trading at $38.60.
The upsized IPO hauled in $752 million for Rubrik’s expansion plans, initially valuing the company at $5.6 billion.
The stock now trades at $69, and the company sports a market cap of $13 billion after a 25% post-earnings pop today.
Rubrik’s fourth quarter showed a cybersecurity play getting a larger chunk of spend from tech departments seeking to protect data in the age of AI. The company grew sales at a hearty pace and cut its losses significantly versus the prior year.
“Overall, this was another massive quarter for the Rubrik growth story, which we believe is still in the early innings with the market for cyber resilience estimated to hit $53 billion by 2027,” Wedbush tech analyst Dan Ives said.
Ives reiterated an Outperform rating on the stock.
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Fourth quarter net sales: +47% year over year to $258.1 million vs. estimates for $233 million
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Subscription annual recurring revenue: +39% to $1.09 billion vs. estimates for $106 billion
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Diluted earnings per share: Loss per share of $0.18 vs. a loss of $1.52 a year ago vs. estimates for a loss of $0.39
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First quarter:
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Full year:
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Sales: $1.145 billion to $1.16 billion vs. estimates for $3.15 billion vs. estimates for $1.11 billion
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Diluted earnings per share: Loss of $1.13 to $1.23 vs. estimates for a $1.25 loss
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Rubrik had 2,246 customers with subscription annual recurring revenue of $100,000 or more, up 29% year over year.
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Free cash flow finished positive for the year.
Brian Sozzi is Yahoo Finance’s Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email [email protected].
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