Analysis: Rubrik, Inc. announces Q2 FY2025 financial results

Rubrik, Inc. has announced financial results for the second quarter of FY2025. The data shows a revenue increase of 35.2% compared to Q2 FY2024, with subscription revenue up by 50.1%. Revenue and the cost of revenue are heading in a positive direction, but overheads are up significantly. Is this investment for the future or buying business?

Background

Rubrik has reported financial data for the period Q2 FY2025, ending 31 July 2024. Revenue for the quarter was up 35.2% year-on-year (YoY) at $204.95 million, with subscription revenue up 50.1% YoY at $191.3 million. Gross margin was 73.1%, in line with previous quarters (except Q1 FY2025, which seems to be an anomaly).

We present the data in five graphs, two showing annual data, and the remainder showing quarterly data. These are labelled Figures 1 to 5.

Expenses

Overheads increased significantly, rising 128.9% compared to the equivalent quarter in FY2024. Within this data, the greatest rise was reported in “General & Administrative”, followed by “Research & Development”, although all three categories of expenses increased greater than the increase in revenue.

Undoubtedly Rubrik is in the growth phase of its evolution, which we can see from Figure 3. We believe the data on this graph shows early hardware-based revenue being phased out in place of subscription revenue for software-only sales. Growth has been consistent over the last six quarters, with almost uniform consistency.

Figure 5 – Rubrik Quarterly Expenses FY2022-FY2025

Annual Recurring Revenue (ARR) is reported as $919 million, of which $678 million is public cloud based. The data is shown in Figures 6 and 7. Data presented by Rubrik shown in Figure 7 highlights significant growth in customers with greater than $100,000 in subscription ARR.

The Architect’s View®

There’s not much more to analyse in this set of data other than to say that Rubrik continues to successfully grow sales at a linear rate. Figure 5 appears to indicate that losses are growing faster than the increase in sales, which, at some point, will need addressing. As we highlighted in Q1 reporting, a lot of funds are being directed to R&D, which leads us to the expectation of some significant new features in future updates. We note that there have been no product press releases since March 2024, which is surprising for a SaaS-based platform running in the public cloud. Feature release cadence will be a measure of future innovation for Rubrik, an area we will be following closely.