Shares in Rubrik Inc. jumped more than 18% in late trading today after the data security software provider impressed investors with strong earnings and revenue beats in its fiscal 2025 third quarter. It also forecast a better-than-expected outlook for both its fourth quarter and full year.

For the quarter that ended on Oct. 31, Rubrik reported an adjusted net loss per share of 21 cents, a vast improvement over a loss of $1.39 per share in the third quarter of fiscal 2024, on revenue of $236.2 million, up 44% year-over-year. Both figures were significantly better than the 40-cents-per-share loss and revenue of $217.5 million expected by analysts.

Rubrik’s strong figures were driven by subscription growth, which was up 38% year-over-year to $221.5 million. The company ended the quarter with 2,085 customers with subscription annual recurring revenue of $100,000 or more, up 32% year-over-year. Cloud annual recurring revenue jumped 69%, to $769 million. Overall annual recurring revenue rose 38%, to $1.002 billion. Rubrik customers are also sticking around, with net revenue retention sitting at over 120%.

Business highlights in the quarter included the launch of Rubrik Data Security Posture Management for Microsoft 365 Copilot, a service aimed at enhancing visibility and control over sensitive data while also reducing exposure risks. Rubrik also unveiled support for Red Hat OpenShift Virtualization on Rubrik Security Cloud, with general availability expected in early 2025.

In partnership with Pure Storage Inc., Rubrik introduced a complete cyber resilience stack during the quarter. The collaboration combines Pure Storage’s FlashArray and FlashBlade with Rubrik Security Cloud to enhance data security and minimize downtime for enterprises.

Additionally, Rubrik integrated with Okta Inc.’s Identity Threat Protection to help organizations identify user risks associated with sensitive data access. The integration is focused on enhancing defenses against identity attacks to further strengthen organizational security postures.

Passing $1 billion in ARR is “a significant milestone achieved in just over 10 years since the company was founded,” co-founder and Chief Executive Bipul Sinha said in the company’s earnings release. “Our strong growth at scale shows that we’re winning the cyber resilience market.”

For its fiscal fourth quarter, Rubrik expects an adjusted loss per share of 37 to 41 cents on revenue of $231.5 million to $233.5 million. Analysts were expecting $225.1 million in revenue. For the full fiscal year, the company expects revenue of $860 million to $862 million, ahead of the $834.9 million forecast by analysts.

Photo: Rubrik