Cantor Fitzgerald has maintained a positive outlook on Rubrik Inc (NYSE: RBRK), reiterating an Overweight rating and a $50.00 price target.
The firm's stance follows Rubrik's impressive financial performance in the second fiscal quarter of 2025, which showcased revenue and earnings surpassing expectations.
The company's revenue outperformed the FactSet consensus by 4.5%, with subscription annual recurring revenue (ARR) exceeding forecasts by 3.4%, operating income by a significant 24.6%, and free cash flow (FCF) by an impressive 55.7%.
Rubrik's consistent financial results have been notable, especially since its initial public offering in April. The company has reported back-to-back quarters of positive outcomes, positioning itself with one of the most commendable earnings reports in the cybersecurity sector this season.
Rubrik's industry-leading Cloud Subscription ARR saw an 80% year-over-year increase to $678 million, while its Subscription ARR grew by 40.3% year-over-year to $919 million, and its revenue growth reached 35.2% year-over-year to $205 million.
The company's net retention rate (NRR) is another highlight, standing at over 120%, which ranks Rubrik in the upper echelon of the tier 1 SaaS/software benchmark category. This indicates that customers continue to expand their spending with the company, a positive sign for sustained growth.
Additionally, Rubrik's Subscription Contribution Margin, a key profitability metric, has shown marked improvement. The trailing twelve months (TTM) figure has improved from -21.8% last year to -8.2%, reflecting a 1,300 basis points gain in operating leverage.
In other recent news, Barclays (LON:BARC) maintained an Overweight rating on Rubrik's stock, highlighting their expectations of an approximate net new Annual Recurring Revenue (ARR) of $30-35 million for Q2. They also suggested that Rubrik could reach breakeven in terms of ARR contribution margin within the next one to two years.
KeyBanc also kept its Overweight rating, responding favorably to Rubrik's announcement of data protection support for Salesforce (NYSE:CRM). Piper Sandler initiated coverage of Rubrik, assigning an Overweight rating and setting a price target of $42, citing the company's effective go-to-market strategy.
InvestingPro Insights
Complementing the positive sentiment from Cantor Fitzgerald, InvestingPro data reveals that Rubrik Inc (NYSE:RBRK) holds a market capitalization of $5.77 billion, reflecting the scale of its operations within the cybersecurity sector. Despite not being profitable over the last twelve months, the company has demonstrated a substantial revenue growth of 15.98% in the same period, indicating an expanding business footprint. The gross profit margin stands at an impressive 69.82%, which is a testament to the company's ability to maintain profitability at the operational level.
InvestingPro Tips highlight that Rubrik has more cash than debt on its balance sheet, suggesting a solid financial position to weather economic uncertainties. Additionally, 8 analysts have revised their earnings upwards for the upcoming period, signaling potential confidence in the company's future financial performance. However, it is worth noting that analysts do not expect the company to be profitable this year, and Rubrik is trading at a high revenue valuation multiple. For investors seeking more in-depth analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/RBRK.
These insights could be particularly valuable for investors considering Rubrik's raised revenue guidance for fiscal year 2025 and its strong market position in the face of a challenging macroeconomic environment.
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