Why Rubrik Stock Surged Today
Key Points
Rubrik's cyber resilience tools are in high demand.
The cloud sentinel's free cash flow is soaring.
- 10 stocks we like better than Rubrik ›
Shares of Rubrik (NYSE: RBRK) rocketed 22% higher on Friday after the data security specialist delivered impressive growth metrics.
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Business is booming
Rubrik's revenue rose 48% year over year to $350 million in the third quarter. The company's subscription annual recurring revenue (ARR) leaped 34% to $1.35 billion, as the number of customers with ARR of $100,000 or more increased 27%.
The cybersecurity provider is benefiting from the trend toward artificial intelligence (AI)-powered solutions.
"As the AI transformation unfolds, organizations worldwide are turning to Rubrik to ensure their businesses remain secure and AI ready," CEO Bipul Sinha said in a press release.
Better still, Rubrik is growing more profitable as it scales its operations. Its gross margin improved to 80.5% from 76.2% in the prior-year quarter.
Rubrik's net loss per share, in turn, narrowed to $0.32 from $0.71. Moreover, the company posted positive adjusted earnings -- which exclude stock-based compensation and other charges -- of $0.10 per share. Wall Street had expected an adjusted loss of $0.17 per share.
Best of all, Rubrik's cash generation continued to strengthen. The cyber guardian's free cash flow rose nearly fivefold to $76.9 million.
Rubrik sees more AI-fueled gains ahead
Management guided for full-year revenue of $1.28 billion and free cash flow of $194 million to $202 million.
"We are committed to leading and pioneering new advancements at the intersection of data protection, cyber resilience, and enterprise AI acceleration," Sinha said.
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rubrik. The Motley Fool has a disclosure policy.
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