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1 AI Growth Stock With 100% 'Strong Buy' Ratings
Rubrik Inc. (RBRK) is a cloud data management company that provides its users with data protection, data threat protection, cyber recovery, and data security posture. They also provide users with data management services for SaaS applications, operating systems, and databases.
Its list of clients includes federal, state, and local governments, as well as private sector companies from the legal, education, service delivery, healthcare, financial services, and critical infrastructure sectors. With more than 6,100 customers on its roster, Rubrik operates from its headquarters located in Palo Alto, California.
After publicly listing on the NYSE this year in April, the stock is up 9.2% from its IPO price of $32, but trades down about 13% from its opening day highs.
Rubrik Beats Q1 Earnings Estimates
Rubrik delivered its Q1 2025 results in mid-June, where the company posted revenues of $187.3 million, up 30% YoY to beat analysts' estimates of $171.5 million. The increase was led by subscription revenue, which rocketed 59% YoY to $172.2 million. Rubrik's loss during the quarter was $1.58 per share, which is wider than last year’s $1.48 per-share loss, but still better than analysts' expected $1.73 per-share estimate.
Non-GAAP gross margin in Q1 was 75.4%, down from 73.6% reported last year, as the company quadrupled its investments in research and development, and more than tripled its expenditure in sales and marketing. At the same time, its cash reserves grew from $130 million to $502 million.
Rubrik expects Q2 revenue in the range of $195-$197 million, with an adjusted per-share loss between $0.50 and $0.48. For the full year, management expects revenue between $810 million and $824 million, with subscription ARR between $983 million and $997 million and per-share losses between $2.35 and $2.25.
The company's next earnings report is tentatively expected after the close on Monday, Sept. 9.
Rubrik Strikes Deal With Salesforce
Rubrik recently introduced Salesforce Data Protection, a platform aimed towards recovery and backup solutions for Salesforce Core Platform data. This enhances data protection across SaaS, cloud, and on-field environments for users of the Salesforce (CRM) platform, a dominant force in enterprise software.
The platform, already available on project management software like Jira, helps IT, admins, and security leaders in establishing reliable backup and recovery points, ensuring quick recovery from data loss incidents. This provides users with a comprehensive solution for protecting critical data assets with a low total cost of ownership.
A Perfect Score from Wall Street
Rubrik has a perfect score from the brokerage community, with all 16 analysts in coverage deeming the stock worthy of a “Strong Buy” rating.
Most recently, Piper Sandler initiated coverage of the cybersecurity firm with its own “Overweight” rating, as analyst James Fish highlighted the stock as a “top idea.” He notes that “next-gen” companies like Rubrik are replacing more traditional vendors, driven by trends such as ransomware, artificial intelligence (AI), and backend-as-a-service (BaaS).
Additionally, Fish believes that the transition to Cloud/SaaS is nearly complete, which should support a re-acceleration of growth and higher free cash flow going forward. The analyst set a price target of $42 for the shares.
The average price target for RBRK is $45.12, about 29% higher than Friday's closing price. The Street-high price target is $50, suggesting the stock can rally 43% from here.
On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
