Rubrik stock surged after the data security software firm reported a narrower-than-expected third quarter loss and revenue topped expectations.
The company reported Rubrik earnings after the market close on Thursday. On the stock market today, Rubrik stock popped more than 20% to 64.51 in early trading.
In the quarter ending Oct. 31, Rubrik said it lost 21 cents per share versus a $47-cent loss a year earlier. Wall Street analysts that follow Rubrik stock estimated a loss of 40 cents per share.
Also, Rubrik said revenue rose 43% to $236.2 million, topping estimates of $217.5 million.
Rubrik sells a cloud-computing-based data backup and recovery platform aimed at protecting companies from ransomware attacks. Rubrik garners about 85% of revenue from subscription software sales.
Rubrik Stock: ARR Key Metric
For Rubrik, Wall Street views subscription-based annual recurring revenue as a key financial metric.
In Q3, Rubrik reported subscription-based annual recurring revenue of $1 billion and net new ARR of $83 million, topping consensus of $58 million and improving from $63 million in Q2.
"Subscription ARR of $1 billion grew by a strong 38% year-over-year, easily above the Street's 34% forecast," said Mizuho analyst Gregg Moskowitz in a report.
Management raised its fiscal 2025 subscription ARR guide from $1.03 billion to $1.06 billion.
Heading into the Rubrik earnings report shares were up 45% in 2024.
Rubrik's initial public offering in late April raised over $750 million, with shares priced at 32.
Founded in 2014, Rubrik's investors include Microsoft.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
