Rubrik (RBRK) Q2 FY2027 Earnings Call: ARR Growth Accelerates, Outlook Raised
Source Tradingkey
Key Takeaways
- Subscription ARR reached $1.66 billion, up 33% year over year, while net new subscription ARR was approximately $96 million and grew 35% year over year.
- Subscription revenue increased 37% to $407.2 million. Total revenue rose 38% to $427.3 million, or 43% when normalized for material rights.
- Subscription net retention remained above 119%. Customers generating at least $100,000 in subscription ARR increased 23% to 3,084, while customers above $1 million grew more than 57%.
- Operating leverage improved. Last-12-month subscription ARR contribution margin rose 460 basis points to 14%, and Q2 free cash flow reached $65.7 million.
- Rubrik raised its FY2027 outlook to $1.88 billion-$1.885 billion in subscription ARR and $1.685 billion-$1.693 billion in total revenue.
- Management cited demand for cyber resilience, Identity Resilience and sovereign deployments as growth drivers. Rubrik Agent Cloud remains early, with more than 15 paying customers and minimal ARR assumed in the annual outlook.
Key Financial Data
| Metric | Q2 FY2027 result | Year-over-year change / context |
|---|---|---|
| Subscription ARR | $1.66 billion | +33% |
| Net new subscription ARR | Approximately $96 million | +35% |
| Subscription revenue | $407.2 million | +37% |
| Total revenue | $427.3 million | +38% |
| Revenue normalized for material rights | — | +43% |
| Subscription net retention rate | Above 119% | Remained strong |
| Customers with at least $100,000 in subscription ARR | 3,084 | +23% |
| Customers with at least $1 million in subscription ARR | — | More than +57% |
| Non-GAAP gross margin | 81.0% | 81.6% a year earlier |
| LTM subscription ARR contribution margin | 14.0% | Up 460 basis points from 9.4% |
| Free cash flow | $65.7 million | $57.5 million a year earlier |
| Cash, cash equivalents and short-term investments | $1.75 billion | At quarter-end |
| Convertible debt | $1.13 billion | At quarter-end |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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