Rubrik (RBRK, Financial) has revealed plans to acquire Predibase, a move aimed at enhancing the adoption of agentic AI from experimental to full-scale deployment. The collaboration is expected to simplify data models significantly, enhance accuracy, lower operational costs, boost performance, and ensure seamless data governance. Rubrik's CEO Bipul Sinha highlighted the impressive advancements made by Predibase in model training and infrastructure, expressing confidence in the impact this acquisition will have on expanding AI adoption globally while providing immediate benefits to customers.
Predibase, which has received funding from venture firms Greylock and Felicis, brings trusted expertise in AI engineering and development to Rubrik. Although the financial details of the transaction have not been disclosed, the deal is pending standard closing conditions.
RBRK Key Business Developments
Release Date: June 05, 2025
- Subscription ARR: Approximately $1.2 billion, growing 38% year over year.
- Net New Subscription ARR: $89 million in the first quarter.
- Subscription Revenue: $266 million, growing 54% year over year.
- Subscription NRR: Above 120%.
- Customers with $100,000+ in Subscription ARR: 2,381, growing 28% year over year.
- Subscription ARR Contribution Margin: Improved over 1,800 basis points year over year.
- Free Cash Flow: Over $33 million in the first quarter.
- Total Revenue: $278 million, up 49% year over year.
- Non-GAAP Gross Margin: 80.5% in the first quarter.
- Cash Position: $762 million in cash, cash equivalents, restricted cash, and marketable securities.
- Debt: $323 million.
- Q2 Revenue Guidance: $281 million to $283 million, up 37% to 38%.
- Full-Year Fiscal 2026 Subscription ARR Guidance: $1.380 billion to $1.388 billion, reflecting a growth rate of 26% to 27%.
- Full-Year Fiscal 2026 Revenue Guidance: $1.179 billion to $1.189 billion, reflecting a growth rate of 33% to 34%.
- Full-Year Free Cash Flow Guidance: $65 million to $75 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Rubrik Inc (RBRK, Financial) reported a strong first-quarter performance, exceeding all guided metrics across top line and profitability.
- Subscription ARR reached approximately $1.2 billion, growing 38% year over year, with net new Subscription ARR at $89 million.
- Subscription revenue was $266 million, growing 54% year over year, and Subscription NRR remained strong above 120%.
- The company reported over $33 million in free cash flow, highlighting strong cash generation.
- Rubrik Inc (RBRK) raised its guidance for the year, reflecting confidence in its market opportunity and growth strategy.
Negative Points
- Despite strong growth, Rubrik Inc (RBRK) reported a non-GAAP earnings per share of negative $0.35 to negative $0.33 for Q2 and negative $1.02 to negative $0.96 for the full year.
- The company anticipates Subscription ARR contribution margins to be seasonally lowest in Q3, indicating potential fluctuations in profitability.
- Rubrik Inc (RBRK) faces competition from legacy and new-gen vendors, requiring continuous innovation to maintain its market position.
- The integration of new identity resilience solutions is still in early stages, posing challenges in achieving immediate market penetration.
- Despite raising guidance, the company remains cautious about macroeconomic uncertainties that could impact future demand.
