Home›Earnings›Results›Rubrik stock slips after Q2 as revenue grows 38% and g…

Rubrik stock slips after Q2 as revenue grows 38% and guidance rises

Rubrik reported Q2 revenue of $427.6 million, with subscription ARR up 35% and adjusted EPS of 20 cents, while it framed stronger Q3 and full fiscal-year forecasts.

Reported · Written up by our desk · Results

Rubrik’s NYSE-listed shares pulled back after its Q2 release in a “sell-the-news” pattern, even as the quarter showed clear growth. The stock had already surged about 45% in the four weeks before the results and more than 150% since its April lows, with the breakout above long-term highs cited as part of the run-up.

In the quarter, Rubrik said revenue rose 38% to $427.6 million and came nearly 800 basis points above expectations. The company attributed the strength to subscriptions and new client momentum, including subscription annual recurring revenue growth of 35%, cloud demand up 39%, and net new clients increasing 35%.

Profitability details were mixed but still leaned positive, with the piece noting a slight gross margin contraction alongside improving operating margins, cash flow, and free cash flow. Adjusted earnings per share were 20 cents, which it said beat expectations by 16 cents.

Rubrik also raised guidance, with Q3 and full fiscal-year revenue and earnings forecasts described as well above expectations. The analysis highlighted expectations for continued traction into the back half of the year, while pointing to valuation risk and the need for further balance sheet progress.

More like this

Sources