Q3 2026 Rubrik Inc Earnings Call

Bipul Sinha: This combination of top-line growth and cash flow margin at our scale is best in class. We remain confident about the opportunity ahead, and thus we are again raising our outlook for the year. But let me begin by providing some additional context on our market opportunity, as well as our areas of focus. Our mission is to lead Rubrik into our next era as the, let me repeat, the security and AI operations company. My discussions with IT and security leaders consistently reveal an assume-breach mentality, which means being prepared for the inevitable reality that every enterprise will face a successful cyber breach. This preparation includes two things. First, understanding the risk of a cyber breach in terms of both data content and identities. And second, the ability to remediate and recover from the breach to ensure business continuity. But the landscape in which these threats occur has dramatically evolved.

Bipul Sinha: This combination of top-line growth and cash flow margin at our scale is best in class. We remain confident about the opportunity ahead, and thus we are again raising our outlook for the year. But let me begin by providing some additional context on our market opportunity, as well as our areas of focus. Our mission is to lead Rubrik into our next era as the, let me repeat, the security and AI operations company. My discussions with IT and security leaders consistently reveal an assume-breach mentality, which means being prepared for the inevitable reality that every enterprise will face a successful cyber breach. This preparation includes two things. First, understanding the risk of a cyber breach in terms of both data content and identities. And second, the ability to remediate and recover from the breach to ensure business continuity. But the landscape in which these threats occur has dramatically evolved.

And cash flow margin at our scale is best in class.

We remain confident about the opportunity ahead.

Thus, we are again, raising our outlook for the year.

But let me begin by providing some additional context on our market opportunity as well as our areas of focus.

Our mission is to lead rubric into our next era as D liquid repeat these security and AI operations company.

My discussions with it and security leaders consistently reveal and assumed breach mentality.

Which means being prepared for the inevitable reality that every enterprise will face a successful cyber breach.

This preparation includes two things.

First understanding the risk of cyber breach in terms of both data content and identities.

And second the ability to remediate and recover from the breach to ensure business continuity.

But the landscape in which these credits occurred has dramatically evolved.

Bipul Sinha: Organizations are now facing a new cyber landscape, with AI potentially enabling threat actors to inflict 10x more damage in one-tenth of the time. Alongside these challenges, enterprises are also focused on modernizing their infrastructure in anticipation of the impending enterprise AI transformation. While AI presents 100 times more risk, the AI transformation promises 100 times more opportunities, much like every big generational shift in enterprise technology. When cloud redefined IT, Rubrik ensured simple and reliable recovery. When cyber threats surged, we extended our Rubrik Security Cloud product suite across data and identity to deliver true cyber resilience. Now, with the rise of AI agents, a new transformation is underway. AI transformation presents unique challenges. An agent operates within an organization's environment, runs business processes, assumes identity, touches critical data, and impacts mission-critical applications at unprecedented speed and scale. These agents are effectively superhuman.

Organizations are now facing a new cyber landscape, with AI potentially enabling threat actors to inflict 10x more damage in 1/10 of the time. Alongside these challenges, enterprises are also focused on modernizing their infrastructure in anticipation of the impending enterprise AI transformation. While AI presents 100 times more risk, the AI transformation promises 100 times more opportunities, much like every big generational shift in enterprise technology. When cloud redefined IT, Rubrik ensured simple and reliable recovery. When cyber threats surged, we extended our Rubrik Security Cloud product suite across data and identity to deliver true cyber resilience. Now, with the rise of AI agents, a new transformation is underway. AI transformation presents unique challenges. An agent operates within an organization's environment, runs business processes, assumes identity, touches critical data, and impacts mission-critical applications at unprecedented speed and scale. These agents are effectively superhuman.

Musicians are now facing a new cyber landscape.

With AI potentially enabling threat actors to inflict.

Tenex more damage in 110th of the time.

Alongside these challenges.

Enterprises are also focused on modernizing their infrastructure in anticipation of the impending enterprise AI transformation.

While AI presents a 100 times more risks the AI transformation promises 100 times more opportunities.

Much like every big generational shift in enterprise technology.

When cloud redefined.

The rubric insured simple and reliable recovery.

When <unk> first we.

Tended our robotic security cloud product suite across.

<unk> data and identity to deliver true cyber resilience.

Now with the rise of AI agents, a new transformation is underway.

AI transformation presents unique challenges.

An agent operates within an organizations environment.

Run business processes assumes identity.

Critical data and impact mission critical applications at unprecedented speed and scale.

These agents are effectively superhuman.

Bipul Sinha: But organizations don't yet have the guardrails to monitor and contain what they do. We need to think about AI agents very differently. Through this AI transformation, Rubrik's mission and strategy remain the same: to accelerate our customers' journey to AI enterprise. I will delve deeper into our AI agent innovations later in my remarks. As companies shift deeper into cloud and AI, customers continue to turn to Rubrik for complete cyber resilience, which includes two key sets of capabilities. First, consistent data and identity security policy controls. Second, rapid and accurate recovery from cyber attacks. While we believe we have a tremendous opportunity in enterprise AI acceleration, we continue to focus on and win the vast cyber resilience market, which includes our core data protection solutions and identity resilience. Let me provide some more details across our three businesses: data protection, identity resilience, and AI operations.

But organizations don't yet have the guardrails to monitor and contain what they do. We need to think about AI agents very differently. Through this AI transformation, Rubrik's mission and strategy remain the same: to accelerate our customers' journey to AI enterprise. I will delve deeper into our AI agent innovations later in my remarks. As companies shift deeper into cloud and AI, customers continue to turn to Rubrik for complete cyber resilience, which includes two key sets of capabilities. First, consistent data and identity security policy controls. Second, rapid and accurate recovery from cyber attacks. While we believe we have a tremendous opportunity in enterprise AI acceleration, we continue to focus on and win the vast cyber resilience market, which includes our core data protection solutions and identity resilience. Let me provide some more details across our three businesses: data protection, identity resilience, and AI operations.

But organizations don't yet have the guardrails to monitor and contain what they do.

We need to think about AI agents very differently.

Through this AI transformation rubrics mission and our strategy remains the same to accelerate our customers' journey to AI enterprise.

I will delve deeper into our AI agent innovation later in my remarks.

As companies shift deeper into cloud and AI.

Customers continue to turn to rubric for complete cyber resilience, which.

This includes two key set of capabilities.

First.

Consistent data and identity security policy controls.

And second rapid and accurate recovery from cyber attacks.

While we believe we have a tremendous opportunity in enterprise AI acceleration.

We continue to focus on and win the vast cyber resilience market, which includes our core data protection solutions and identity resilient.

Let me provide some more details.

Our key businesses data protection identity resilience and AI operations.

Bipul Sinha: Our cyber resilient data protection journey remains in its early stages, particularly as data availability and security become the most crucial element for AI. We continue to add new solutions across data center, cloud, and SaaS workloads, leveraging the same underlying preemptive recovery engine to deliver complete risk and remediation capabilities. Our unique architecture consistently enables us to outperform both legacy and new-gen backup vendors. In fact, in Q3, bookings from legacy replacements accelerated year on year, surpassing the growth rate seen in H1. Let me provide two specific examples of legacy replacements in very large enterprises. First, one of the largest banks in Asia and worldwide selected Rubrik as their strategic cyber resilience partner, replacing a longstanding legacy vendor. We outcompeted several new-gen backup vendors for this opportunity.

Our cyber resilient data protection journey remains in its early stages, particularly as data availability and security become the most crucial element for AI. We continue to add new solutions across data center, cloud, and SaaS workloads, leveraging the same underlying preemptive recovery engine to deliver complete risk and remediation capabilities. Our unique architecture consistently enables us to outperform both legacy and new-gen backup vendors. In fact, in Q3, bookings from legacy replacements accelerated year on year, surpassing the growth rate seen in H1. Let me provide two specific examples of legacy replacements in very large enterprises. First, one of the largest banks in Asia and worldwide selected Rubrik as their strategic cyber resilience partner, replacing a longstanding legacy vendor. We outcompeted several new-gen backup vendors for this opportunity.

Our cyber resilient data protection journey remains in its early stages.

Particularly as data availability and security become the most crucial element for AI.

We continue to add new solutions across data center cloud and SaaS workloads, leveraging the same underlying preemptive recovery engine could deliver complete risk and remediation capability.

Our unique architecture consistently enables us to outperform both legacy and new Gen backup vendors.

In fact in the third quarter bookings from legacy replacement accelerated year on year, surpassing the growth rate seen in the first half of the year.

Let me provide specific examples of legacy replacement in very large enterprises.

First one of the largest banks in Asia and worldwide selected rubric as they are a strategic cyber resilience partner, replacing a longstanding legacy vendor.

We out competed several new gen backup vendors for this opportunity.

Bipul Sinha: Rubrik's platform now provides data protection across its data center and cloud workloads for mission-critical applications. The customer also chose the Rubrik Identity Recovery solution for over 250,000 users. And the second, a Fortune 250 professional services firm selected Rubrik to displace its 15-year legacy backup vendor. Rubrik again outcompeted several new-gen competitors for this opportunity. Rubrik will provide a unified cyber resilience platform across the customer's rapidly evolving hybrid and multi-cloud environments. Let me now talk about the momentum we are seeing in cloud protection. When a sophisticated cyber attack inevitably occurs, organizations need to recover quickly and seamlessly, which is difficult across multiple workloads, tools, and interfaces. Rubrik Security Cloud delivers complete cloud and SaaS protection from a single platform that understands the relationship among data, applications, and identities, regardless of where they live.

Rubrik's platform now provides data protection across its data center and cloud workloads for mission-critical applications. The customer also chose the Rubrik Identity Recovery solution for over 250,000 users. And the second, a Fortune 250 professional services firm selected Rubrik to displace its 15-year legacy backup vendor. Rubrik again outcompeted several new-gen competitors for this opportunity. Rubrik will provide a unified cyber resilience platform across the customer's rapidly evolving hybrid and multi-cloud environments. Let me now talk about the momentum we are seeing in cloud protection. When a sophisticated cyber attack inevitably occurs, organizations need to recover quickly and seamlessly, which is difficult across multiple workloads, tools, and interfaces. Rubrik Security Cloud delivers complete cloud and SaaS protection from a single platform that understands the relationship among data, applications, and identities, regardless of where they live.

Robotics platform now provides greater protection across data center and cloud workloads for mission critical applications.

The customer also chose the rubric identity recovery solution for over 250000 users.

And the second a fortune 250 professional services firm selected rubric to displace is 15 year legacy backup vendors.

The rubric again out competed several new Gen competition.

For this opportunity.

Rubric will provide a unified cyber resilience platform across the customers rapidly evolving hybrid and multi cloud environments.

Let me now talk about the momentum we are seeing in cloud protection.

Many sophisticated cyber attack inevitably occurs organizations need to recover quickly and seamlessly which is difficult across multiple workloads tools and interfaces.

Global Security cloud delivered complete cloud and SaaS protection from a single platform that understands the relationship among data applications and identity, regardless of where they live.

Bipul Sinha: We continue to build upon our code-to-cloud cyber resilience offerings, which delivers protection from the first line of code to full-stack application in production across the major hyperscalers. For example, we recently announced Rubrik DevOps Protection for Azure DevOps and GitHub. This new solution is designed to ensure our customers' most valuable intellectual property and development pipeline are protected and preserved. Now, let me illustrate our momentum in cloud protection with two specific customer wins. A health and wellness technology company chose Rubrik Cloud Protection to protect a multi-petabyte mission-critical workload containing user data. Rubrik offered not only cyber resilience but also a significant cost reduction compared to cloud-native backup solutions due to our unique platform. With Rubrik, this customer can confidently meet their minimal viable business plans with our immutable and secure data protection solutions.

We continue to build upon our code-to-cloud cyber resilience offerings, which delivers protection from the first line of code to full-stack application in production across the major hyperscalers. For example, we recently announced Rubrik DevOps Protection for Azure DevOps and GitHub. This new solution is designed to ensure our customers' most valuable intellectual property and development pipeline are protected and preserved. Now, let me illustrate our momentum in cloud protection with two specific customer wins. A health and wellness technology company chose Rubrik Cloud Protection to protect a multi-petabyte mission-critical workload containing user data. Rubrik offered not only cyber resilience but also a significant cost reduction compared to cloud-native backup solutions due to our unique platform. With Rubrik, this customer can confidently meet their minimal viable business plans with our immutable and secure data protection solutions.

We continue to build upon our core to cloud cyber resilience offering.

Which delivers protection from the first line of code to full stack application in production across the major hyperscale.

For example, we recently announced Rubig Dev ops protection for Azure <unk> and Github.

This new solution is designed to ensure our customers most valuable intellectual property and development pipeline are protected and preserved.

Now, let me illustrate our momentum in cloud protection with two specific customer wins.

Our health and wellness Technology company chose rubric cloud protection to protect our multi petabyte mission critical workload containing user data.

The rubric offered not only cyber resilience.

But also a significant cost reduction compared to cloud native backup solutions due to our unique platform.

We're through rig this customer can confidently meet their minimal viable business plan.

With our immutable and secure data protection solution.

Bipul Sinha: Second, a Fortune 150 biopharmaceuticals company strengthened their partnership with Rubrik this quarter by adding cloud protection for its multi-petabyte public cloud data estate. We not only replaced native backup solutions but also outcompeted new-gen vendors. Rubrik was selected due to the strength of our cyber resilience capabilities, as well as lower TCO with an estimated 30% annual cost savings. Next, let's talk about our identity business. As we have discussed, our comprehensive identity resilience platform uniquely combines identity posture and recovery with the data security posture management, or DSPM, to deliver complete identity risk and remediation solutions. Our identity line of business has been highly successful in garnering budget from CISOs, extending Rubrik beyond our traditional CIO and CTO buying personas. This business has achieved significant momentum in just over three quarters of the first general availability, reaching about $20 million in subscription ARR.

And second a fortune 150, biopharmaceutical company strengthened deep partnership with rubric this quarter by adding cloud protection for its multi petabyte public cloud data estate.

Second, a Fortune 150 biopharmaceuticals company strengthened their partnership with Rubrik this quarter by adding cloud protection for its multi-petabyte public cloud data estate. We not only replaced native backup solutions but also outcompeted new-gen vendors. Rubrik was selected due to the strength of our cyber resilience capabilities, as well as lower TCO with an estimated 30% annual cost savings. Next, let's talk about our identity business. As we have discussed, our comprehensive identity resilience platform uniquely combines identity posture and recovery with the data security posture management, or DSPM, to deliver complete identity risk and remediation solutions. Our identity line of business has been highly successful in garnering budget from CISOs, extending Rubrik beyond our traditional CIO and CTO buying personas. This business has achieved significant momentum in just over three quarters of the first general availability, reaching about $20 million in subscription ARR.

We not only replaced negative backup solution, but also out competed new gen vendors.

Rubric was selected due to the strength of our cyber resilience capabilities as well as lower <unk> with an estimated 30% annual cost savings.

Next let's talk about our identity business.

As we have discussed our comprehensive identity resilient platform uniquely combines identity posture and recovery with the data security posture management, our DSP M to deliver complete identity risk and remediation solution.

Our identity line of business has been highly successful in garnering budget from <unk>.

Extending rubric beyond our traditional CIO and CTO buying personas.

This business has achieved significant momentum in just over three quarters of the first to general availability, reaching about $20 million in subscription era.

Bipul Sinha: In Q3 alone, we more than doubled the total number of identity customers. In fact, 40% of those identity customers added in the third quarter were net new to Rubrik. As you might recall, we started our identity journey with the release of identity recovery, which provides the rapid recovery of identity services following cyber attacks or operational failures to minimize business disruption. This quarter, we announced support for Okta Identity, making Rubrik the only identity recovery solution to support Okta, Active Directory, and Entra ID recovery. We also announced a new identity integration with CrowdStrike this quarter. With this integration, our customers can not only detect identity threats in real time with Falcon Next-Gen Identity Security but also surgically roll back malicious changes and restore their identity system to a safe operational state with Rubrik Security Cloud. CISOs are increasingly turning to Rubrik for a more comprehensive identity strategy.

In Q3 alone, we more than doubled the total number of identity customers. In fact, 40% of those identity customers added in the third quarter were net new to Rubrik. As you might recall, we started our identity journey with the release of identity recovery, which provides the rapid recovery of identity services following cyber attacks or operational failures to minimize business disruption. This quarter, we announced support for Okta Identity, making Rubrik the only identity recovery solution to support Okta, Active Directory, and Entra ID recovery. We also announced a new identity integration with CrowdStrike this quarter. With this integration, our customers can not only detect identity threats in real time with Falcon Next-Gen Identity Security but also surgically roll back malicious changes and restore their identity system to a safe operational state with Rubrik Security Cloud. CISOs are increasingly turning to Rubrik for a more comprehensive identity strategy.

In Q3 alone.

We more than doubled the total number of identity customers.

In fact <unk>.

40% of those identity customers added in the third quarter, where net new rubric.

As you might recall, we started our identity journey with the release of identity recovery, which provides the rapid recovery of identity services. Following cyber attacks are operational failures to minimize business disruption.

This quarter, we announced support for Okta identity.

<unk> rubric, the only identity recovery solution to support Okta active directory and Entre IV recovery.

We also announced a new identity integration with crowd strike this quarter.

With this integration our customers can not only detect identity track in real time.

Falcon Nextgen identity security.

Work also surgically rollback malicious changes and restored their identity system to a safe operational and state that rubric security cloud.

C stores are increasingly turning to rubric for a more comprehensive identity strategy.

Bipul Sinha: This quarter, we launched Rubrik Identity Resilience, a higher-tier addition above identity recovery. This solution monitors and protects both human and non-human identities, tracks misconfigurations, and high-risk or malicious changes within Active Directory and Entra ID. It also enhances risk posture and accelerates cyber recovery by linking identity-based information such as privileged access with Rubrik's DSPMs, sensitive data context, and activity. In just one quarter of selling, we closed 65 deals for identity resilience. This early momentum makes us very excited about what's ahead for identity resilience. Let me share two illustrative customer wins. A UK government agency added identity resilience for its large user base alongside cloud data protection for Azure and AWS as they sought to bolster resilience for critical national infrastructure amid rising cyber attacks in the UK.

This quarter, we launched Rubrik Identity Resilience, a higher-tier addition above identity recovery. This solution monitors and protects both human and non-human identities, tracks misconfigurations, and high-risk or malicious changes within Active Directory and Entra ID. It also enhances risk posture and accelerates cyber recovery by linking identity-based information such as privileged access with Rubrik's DSPMs, sensitive data context, and activity. In just one quarter of selling, we closed 65 deals for identity resilience. This early momentum makes us very excited about what's ahead for identity resilience. Let me share two illustrative customer wins. A UK government agency added identity resilience for its large user base alongside cloud data protection for Azure and AWS as they sought to bolster resilience for critical national infrastructure amid rising cyber attacks in the UK.

This quarter, we launched rubric identity resilience a higher tier addition evolved identity recovery.

This solution monitors and protects both human and nonhuman identities.

Track Mis configuration.

And high risk or malicious changes within active directory and on Friday.

It also enhances the risk posture and accelerates cyber recovery by linking identity based information such as privileged access with rubrics DSP M sensitive data context and activity.

In just one quarter of selling we closed 65 deals for identity resilience.

This early momentum makes us very excited about what's ahead for identity resilience.

Let me share two illustrative customer wins.

Our UK government agency added identity resilience <unk> large user base alongside cloud data protection for Azure and AWS as they sought to bolster resilience for critical national infrastructure.

Rising cyber attack in the UK.

Bipul Sinha: This agency also consolidated several disparate tools with the Rubrik platform and replaced native cloud backup solutions, which proved unscalable for the customer's massive and complex data estate. Second, a US state agency turned to Rubrik this quarter after the rise of cyber attacks on governments nationwide, and in particular, after a recent incident that impacted a critical state agency. Seeking to bolster its cyber strategy and reduce recovery times, the agency chose Rubrik Identity Resilience and M365 protection for 100,000 users, replacing their native cloud protection and traditional data center identity backup. With Rubrik, cyber recovery times will move to mere hours compared to months with the incumbent solution. Lastly, I will talk about our innovations in the AI space. As I mentioned earlier, agentic AI can unlock significant new efficiencies for every organization.

This agency also consolidated several disparate tools with the Rubrik platform and replaced native cloud backup solutions, which proved unscalable for the customer's massive and complex data estate. Second, a US state agency turned to Rubrik this quarter after the rise of cyber attacks on governments nationwide, and in particular, after a recent incident that impacted a critical state agency. Seeking to bolster its cyber strategy and reduce recovery times, the agency chose Rubrik Identity Resilience and M365 protection for 100,000 users, replacing their native cloud protection and traditional data center identity backup. With Rubrik, cyber recovery times will move to mere hours compared to months with the incumbent solution. Lastly, I will talk about our innovations in the AI space. As I mentioned earlier, agentic AI can unlock significant new efficiencies for every organization.

This agency also consolidated several disparate tools with the rubric platform.

And replaced native cloud backup solution, which proved unearth scalable for the customers massive in complex data state.

And second our U S State agency turn to Rubig this quarter.

After the rise of cyber attacks on government nationwide.

And in particular after a recent incident that impacted our critical state agency.

Seeking to bolster its cyber strategy and reduce recovery times. The agency chose rubric identity resilience and <unk> 65 protection 400000 users.

Replacing the native cloud protection and traditional data center identity backup.

With rubric cyber recovery times will move to mirror ours compare two months with the incumbent solution.

Lastly.

I will talk about our innovations in the AI space.

As I mentioned earlier Agentic AI can unlock.

Significant new efficiencies for every organization.

Bipul Sinha: But it also introduces considerable risks, including threats by bad actors and the issue of hallucinations. To help accelerate AI transformation, we recently launched Rubrik Agent Cloud, or RAC, a new product suite that enables enterprises to deploy AI agents safely and confidently at scale. With the release of Rubrik Agent Cloud, Rubrik now operates two complementary product suites built on the same Rubrik platform, which combines application, data, and identity contexts across all enterprise workloads. First, Rubrik Security Cloud for cyber resilience and accelerated cloud adoption. And second, Rubrik Agent Cloud for AI resilience and accelerated AI agent adoption. Our competitive advantage is Rubrik's core platform that sits in the center of data, application, and identity. Following the acquisition of Predibase last quarter, we now have agent context in the mix as well.

But it also introduces considerable risks, including threats by bad actors and the issue of hallucinations. To help accelerate AI transformation, we recently launched Rubrik Agent Cloud, or RAC, a new product suite that enables enterprises to deploy AI agents safely and confidently at scale. With the release of Rubrik Agent Cloud, Rubrik now operates two complementary product suites built on the same Rubrik platform, which combines application, data, and identity contexts across all enterprise workloads. First, Rubrik Security Cloud for cyber resilience and accelerated cloud adoption. And second, Rubrik Agent Cloud for AI resilience and accelerated AI agent adoption. Our competitive advantage is Rubrik's core platform that sits in the center of data, application, and identity. Following the acquisition of Predibase last quarter, we now have agent context in the mix as well.

But it also introduces considerable risks, including pets by bad actors and the issue of hallucinations.

To help accelerate AI transformation.

We recently launched rubric agent cloud or RSC.

New product suite that enables enterprises to deploy agents safely and confidently at this scale.

With the release of Rubric agent cloud rubric now operate two complementary product suite built on the same rubric platform, which combines application data and identity contacts.

Across all enterprise workloads.

First the rubric security cloud for cyber resilience and accelerated cloud adoption.

And second.

Rubig agent cloud for AIA resilience and accelerated AI agent adoption.

Our competitive advantage is rubrics core platform that sits in the center of data application and identity.

Following the acquisition of <unk> last quarter.

We now have agent context in the mix as well.

Bipul Sinha: Together, this forms Rubrik Agent Cloud, the first integrated enterprise control layer for managing the AI agent lifecycle. RAC answers the three most critical questions currently facing every CIO and CISO. Number one, what agents do I have, and what are their capabilities and activities? Number two, what data are these agents allowed to access, and are they operating within the enterprise guardrails? And number three, if something goes wrong, can I undo it? RAC provides organizations with the ability to answer these questions through its core capabilities, namely agent monitoring, agent governance, and full agent remediation. This includes Rubrik Agent Rewind, which we announced last quarter. Agent Rewind helps customers undo the mistakes of AI agents, which is crucial for scalable and secure AI adoption. We also recently announced that Rubrik Agent Cloud will integrate with Microsoft Copilot Studio and AWS Bedrock.

Together, this forms Rubrik Agent Cloud, the first integrated enterprise control layer for managing the AI agent lifecycle. RAC answers the three most critical questions currently facing every CIO and CISO. Number one, what agents do I have, and what are their capabilities and activities? Number two, what data are these agents allowed to access, and are they operating within the enterprise guardrails? And number three, if something goes wrong, can I undo it? RAC provides organizations with the ability to answer these questions through its core capabilities, namely agent monitoring, agent governance, and full agent remediation. This includes Rubrik Agent Rewind, which we announced last quarter. Agent Rewind helps customers undo the mistakes of AI agents, which is crucial for scalable and secure AI adoption. We also recently announced that Rubrik Agent Cloud will integrate with Microsoft Copilot Studio and AWS Bedrock.

Together this forms the rubric agent cloud the first integrated enterprise controller for managing the AI agent lifecycle.

Odyssey answers the three most critical questions currently facing every CIO and CFO.

Number one what agencies do I have and what are their capabilities and activities.

Number two what data are these agents allowed two axes.

And are the operating within the enterprise Guardrails.

And number three.

If something goes wrong cannot undo it.

Odyssey provides organizations with the ability to answer these questions to its core capabilities.

Namely agent monitoring AG.

The agent the governance.

And full agent remediation.

This includes rubric agent Rewind, which we announced last quarter.

Agent remind helps customers undo the mistakes of AI agent, which is crucial for a scalable and secure AI adoption.

We also recently announced that Rubik agent cloud will integrate with Microsoft Copilot to studio and AWS bedrock.

Bipul Sinha: As we have said previously, we are still in the initial phase of a multi-year effort to scale Rubrik's AI solutions. Rubrik Agent Cloud is currently in beta, but we are very excited about the early customer enthusiasm. Looking ahead, we plan to expand our capabilities and investments to enable confident enterprise AI transformation and agentic work adoption. In closing, I would like to share my gratitude to my fellow Rubrikans. Rubrik continues to win the cyber resilience market, and at the same time, we are defining the AI enterprise future. Rubrikans' collective focus and disciplined execution always inspire me. Also, I extend my sincere gratitude to our customers and partners. Your confidence in us motivates our continuous effort to lead and shape the future of cybersecurity and enterprise AI. Lastly, of course, thank you to you, our shareholders, for your continued support and trust.

As we have said previously, we are still in the initial phase of a multi-year effort to scale Rubrik's AI solutions. Rubrik Agent Cloud is currently in beta, but we are very excited about the early customer enthusiasm. Looking ahead, we plan to expand our capabilities and investments to enable confident enterprise AI transformation and agentic work adoption. In closing, I would like to share my gratitude to my fellow Rubrikans. Rubrik continues to win the cyber resilience market, and at the same time, we are defining the AI enterprise future. Rubrikans' collective focus and disciplined execution always inspire me. Also, I extend my sincere gratitude to our customers and partners. Your confidence in us motivates our continuous effort to lead and shape the future of cybersecurity and enterprise AI. Lastly, of course, thank you to you, our shareholders, for your continued support and trust.

As we have said previously we are still in the initial phase of a multi year effort to a scale rubrics AI solutions.

Rubric agent cloud is currently in beta, but we are very excited about the early customer enthusiasm.

Looking ahead, we plan to expand our capabilities and investments to enable confident enterprise AI transformation and agent take work adoption.

In closing I would like to share my gratitude to my fellow Rubicon.

Rubric continues to win the cyber resilience market and at the same time, we are defining the AI enterprise future.

Rubicon collective focus and disciplined execution always inspire to me.

Also I extend my sincere gratitude to our customers and partners your confidence in us motivates, our continuous effort to lead and shape the future of cyber security and enterprise AI.

And lastly of course, thank you to you our shareholders for your continued support and trust.

Bipul Sinha: A number of you have mentioned to me the consistency with which we have been delivering the beat-and-raise cadence since our IPO. This is true. We have done so quarter after quarter. We are confident in closing out this year strong and continuing our great momentum into the next year and beyond. With that, I'm pleased to pass it over to our Chief Financial Officer, Kiran Choudary. Thank you, Bipul. Good afternoon, everyone, and thank you for joining us today. We had a very strong Q3, marked by record net new subscription ARR and continued improvement in profitability metrics. These results reinforce our leading position in the large and expanding cyber resilience market. We are raising our Q4 outlook as we look forward to a strong close to the fiscal year.

A number of you have mentioned to me the consistency with which we have been delivering the beat-and-raise cadence since our IPO. This is true. We have done so quarter after quarter. We are confident in closing out this year strong and continuing our great momentum into the next year and beyond. With that, I'm pleased to pass it over to our Chief Financial Officer, Kiran Choudary.

A number of you have mentioned to me the consistency with which we have been delivering the beat and raise cadence since our IPO.

This is true we have done so quarter after quarter.

We are confident in closing out this year strong and continuing our great momentum into the next year and beyond with that I am pleased to pass it over to our Chief Financial Officer, Karen Chaudhry.

Kiran Choudary: Thank you, Bipul. Good afternoon, everyone, and thank you for joining us today. We had a very strong Q3, marked by record net new subscription ARR and continued improvement in profitability metrics. These results reinforce our leading position in the large and expanding cyber resilience market. We are raising our Q4 outlook as we look forward to a strong close to the fiscal year.

Thank you ripple good afternoon, everyone and thank you for joining us today we.

We had a very strong Q3 marked by record net new subscription IRR and continued improvement in profitability metrics.

These results reinforce our leading position in the large and expanding cyber resilience market.

We are raising our Q4 outlook as we look forward to a strong close to the fiscal year.

Bipul Sinha: Let me start by briefly recapping our third quarter fiscal 2026 financial results and key operating metrics, and then I'll provide guidance for the fourth quarter and full year fiscal 2026. All comparisons, unless otherwise noted, are on a year-over-year basis. We are very pleased to have ended Q3 with subscription ARR of $1.35 billion, growing 34%. We added $94 million in net new subscription ARR, a record amount for Rubrik. We continue to drive adoption of our Rubrik Security Cloud, which resulted in $1.17 billion of cloud ARR, up 53%. Our differentiated land and expand model benefits from multiple avenues to gain new customers and grow our footprint after the initial contract. Expansion occurs through data growth in existing applications, securing more applications or identities, or adding more security products.

Let me start by briefly recapping our third quarter fiscal 2026 financial results and key operating metrics, and then I'll provide guidance for the fourth quarter and full year fiscal 2026. All comparisons, unless otherwise noted, are on a year-over-year basis. We are very pleased to have ended Q3 with subscription ARR of $1.35 billion, growing 34%. We added $94 million in net new subscription ARR, a record amount for Rubrik. We continue to drive adoption of our Rubrik Security Cloud, which resulted in $1.17 billion of cloud ARR, up 53%. Our differentiated land and expand model benefits from multiple avenues to gain new customers and grow our footprint after the initial contract. Expansion occurs through data growth in existing applications, securing more applications or identities, or adding more security products.

Let me start by briefly recapping, our third quarter fiscal 2026 financial results and key operating metrics and then I'll provide guidance for the fourth quarter and full year fiscal 2026.

All comparisons unless otherwise noted I don't know a year over year basis.

We are very pleased to have ended Q3 with subscription air out of $135 billion growing 34%.

We added $94 million and net new subscription are are a record amount for rubric.

We continue to drive adoption of our robotic security cloud, which resulted in $1 one $7 billion of Claudia are up 53%.

Our differentiated land and expand model benefits from multiple avenues to gain new customers and grow our footprint after the initial contract.

Expansion of Kestrel data growth and existing applications.

Securing more applications or identities are adding more security products.

Bipul Sinha: As a result, we continue to see a strong subscription net retention rate, which remained over 120% in Q3. We are very proud of the high customer retention and expansion dynamics of our business. All vectors of expansion are healthy contributors to our NRR, highlighting the meaningful runway we have to more deeply penetrate our customer base. Adoption of additional security products contributed over 40% of our subscription net retention rate in the quarter, up from 32% in the year-ago period. In Q3, we saw significant growth in our largest accounts, with the number of customers contributing $100,000 or more in subscription ARR rising 27% to 2,638. These large customers now represent 86% of our subscription ARR, an increase from 83% a year ago.

As a result, we continue to see a strong subscription net retention rate, which remained over 120% in Q3. We are very proud of the high customer retention and expansion dynamics of our business. All vectors of expansion are healthy contributors to our NRR, highlighting the meaningful runway we have to more deeply penetrate our customer base. Adoption of additional security products contributed over 40% of our subscription net retention rate in the quarter, up from 32% in the year-ago period. In Q3, we saw significant growth in our largest accounts, with the number of customers contributing $100,000 or more in subscription ARR rising 27% to 2,638. These large customers now represent 86% of our subscription ARR, an increase from 83% a year ago.

As a result, we continue to see strong subscription net retention rate, which remained over 120% in the third quarter.

We're very proud of the high customer retention and expansion dynamics of our business.

All vectors of expansion a healthy contributor to our NR.

Letting the meaningful runway, we have to more deeply penetrate our customer base.

Adoption of additional security products contributed over 40% of our subscription net retention rate in the quarter.

Up from 32% in the year ago period.

In the third quarter, we saw significant growth in our largest accounts.

With the number of customers contributing $100000 or more in subscription there are rising 27% to 2638.

These large customers now represent 86% of our subscription IRR, an increase from 83% a year ago.

Bipul Sinha: Furthermore, we added a record 23 new customers with subscription ARR of $1 million or more, driving over 50% growth in our million-dollar subscription base. For our third quarter, subscription revenue was $336 million, up 52%. Total revenue was $350 million, up 48%. Revenue in Q3 primarily benefited from our strong ARR growth. However, we again had tailwinds from our cloud transformation, resulting in higher non-recurring revenue, which is accounted for as material rights. Material rights contributed approximately $25 million to revenue this quarter, modestly ahead of our expectation. Revenue growth normalized for material rights was approximately 36% in the quarter. Turning to the geographic mix of revenue, revenue from the Americas grew 51% to $256 million. Revenue from outside the Americas grew 41% to $94 million.

Furthermore, we added a record 23 new customers with subscription ARR of $1 million or more, driving over 50% growth in our million-dollar subscription base. For our third quarter, subscription revenue was $336 million, up 52%. Total revenue was $350 million, up 48%. Revenue in Q3 primarily benefited from our strong ARR growth. However, we again had tailwinds from our cloud transformation, resulting in higher non-recurring revenue, which is accounted for as material rights. Material rights contributed approximately $25 million to revenue this quarter, modestly ahead of our expectation. Revenue growth normalized for material rights was approximately 36% in the quarter. Turning to the geographic mix of revenue, revenue from the Americas grew 51% to $256 million. Revenue from outside the Americas grew 41% to $94 million.

Furthermore, we added a record 23, new customers with subscription <unk> of million dollars or more driving over 50% growth in our million dollar subscription base.

For our third quarter subscription revenue was $336 million up 52%.

Total revenue was $350 million up 48%.

Revenue in Q3, primarily benefited from a stronger era of growth.

However, we again had tailwind from a cloud transformation, resulting in higher non recurring revenue, which is accounted for as material rights.

Material rights contributed approximately $25 million to revenue this quarter.

<unk> ahead of our expectations.

Revenue growth normalized for material rights was approximately 36% in the quarter.

Turning to the geographic mix of revenue.

Revenue from the Americas grew 51% to $256 million revenue from.

Outside the Americas grew 41% to $94 million.

Bipul Sinha: Before turning to gross margins, expenses, and profitability, I would like to note that I'll be discussing results on a non-GAAP basis going forward. Our non-GAAP gross margin was 83% in Q3 compared to 79% in the year-ago period. Our gross margin benefited from the revenue outperformance, including higher non-recurring revenue and the improved efficiency of our customer support organization. As a reminder, we look at subscription ARR contribution margin as a key measure of operating leverage. We believe the improvement in our subscription ARR contribution margin demonstrates our ability to drive operating leverage and profitability at scale. Subscription ARR contribution margin was positive 10% in the last 12 months ended 31 October, compared to negative 3% in the year-ago period, an improvement of approximately 1,400 basis points.

Before turning to gross margins, expenses, and profitability, I would like to note that I'll be discussing results on a non-GAAP basis going forward. Our non-GAAP gross margin was 83% in Q3 compared to 79% in the year-ago period. Our gross margin benefited from the revenue outperformance, including higher non-recurring revenue and the improved efficiency of our customer support organization. As a reminder, we look at subscription ARR contribution margin as a key measure of operating leverage. We believe the improvement in our subscription ARR contribution margin demonstrates our ability to drive operating leverage and profitability at scale. Subscription ARR contribution margin was positive 10% in the last 12 months ended 31st October, compared to negative 3% in the year-ago period, an improvement of approximately 1,400 basis points.

Before turning to gross margins expenses and profitability I would like to note that I'll be discussing results in a non-GAAP basis going forward.

Our non-GAAP gross margin was 83% in the third quarter compared to 79% in the year ago period.

Gross margin benefited from the revenue outperformance, including higher nonrecurring revenue and the improved efficiency of our customer support organization.

As a reminder, we look at subscription there are contribution margin as a key measure of operating leverage.

We believe the improvement in our subscription ore contribution margin demonstrates our ability to drive operating leverage and profitability at scale.

Subscription are our contribution margin was positive 10% in the last 12 months ended October 31.

Compared to negative 3% in the year ago period, an improvement of approximately 1400 basis points.

Bipul Sinha: When normalizing for the $23 million in employee payroll taxes associated with the IPO in the prior period, the improvement was approximately 1,200 basis points. The improvement in subscription ARR contribution margin was driven by higher sales, the benefits of scale, and improving efficiencies and management of costs across the business. Free cash flow was $77 million compared to $16 million in the third quarter of fiscal 2025. This increase was driven by higher sales, improving operating leverage, and optimizing our capital structure. Turning to our balance sheet, we ended the third quarter in a strong cash position with $1.6 billion in cash, cash equivalents, restricted cash, and marketable securities, and $1.1 billion in convertible debt. Let me now provide some context on our guidance. We are confident in our outlook driven by the robust cyber resilience market and strong demand for our unique offerings.

When normalizing for the $23 million in employee payroll taxes associated with the IPO in the prior period, the improvement was approximately 1,200 basis points. The improvement in subscription ARR contribution margin was driven by higher sales, the benefits of scale, and improving efficiencies and management of costs across the business. Free cash flow was $77 million compared to $16 million in the third quarter of fiscal 2025. This increase was driven by higher sales, improving operating leverage, and optimizing our capital structure. Turning to our balance sheet, we ended the third quarter in a strong cash position with $1.6 billion in cash, cash equivalents, restricted cash, and marketable securities, and $1.1 billion in convertible debt. Let me now provide some context on our guidance. We are confident in our outlook driven by the robust cyber resilience market and strong demand for our unique offerings.

When normalizing for the $23 million in employee payroll taxes associated with the IPO in the prior period the improvement was approximately 200 basis points.

The improvement in subscription air our contribution margin was driven by higher sales and the benefits of scale and improving efficiencies in management of costs across the business.

Free cash flow of $77 million compared to $16 million in the third quarter of fiscal 2025. This.

This increase was driven by higher sales, improving operating leverage and optimizing our capital structure.

Turning to our balance sheet, we ended the third quarter and a strong cash position with $1 $6 billion in cash cash equivalents restricted cash and marketable securities and $1 1 billion in convertible debt.

Let me now provide some context on our guidance.

We are confident in our outlook driven by the robust cyber resilience market and strong demand for our unique offerings. We expect these factors combined with our consistent and effective execution to deliver strong subscription growth.

Bipul Sinha: We expect these factors combined with our consistent and effective execution to deliver strong subscription ARR growth ahead. We plan to continue making operational investments across two key areas. First, we'll continue to invest in R&D to accelerate innovation in the large but developing markets of data, security, and AI. Second, we will invest in our go-to-market, specifically targeting regions and verticals that offer the most attractive ROI. These go-to-market investments will also focus on achieving product-market fit and scaling our newer innovations, such as Identity Resilience Platform and Rubrik Agent Cloud. Now turning to guidance for the fourth quarter and full year fiscal 2026. In Q4, we expect revenue of $341 million to $343 million, up 33% or approximately 30% when normalized for material rights. We expect non-GAAP EPS of negative $0.12 to negative $0.10 based on approximately 201 million weighted average shares outstanding.

We expect these factors combined with our consistent and effective execution to deliver strong subscription ARR growth ahead. We plan to continue making operational investments across two key areas. First, we'll continue to invest in R&D to accelerate innovation in the large but developing markets of data, security, and AI. Second, we will invest in our go-to-market, specifically targeting regions and verticals that offer the most attractive ROI. These go-to-market investments will also focus on achieving product-market fit and scaling our newer innovations, such as Identity Resilience Platform and Rubrik Agent Cloud. Now turning to guidance for the fourth quarter and full year fiscal 2026. In Q4, we expect revenue of $341 million to $343 million, up 33% or approximately 30% when normalized for material rights. We expect non-GAAP EPS of -$0.12 to -$0.10 based on approximately 201 million weighted average shares outstanding.

We plan to continue making operational and restaurants across two key areas first we'll continue to invest in R&D to accelerate innovation of the large but developing markets of data security and AI search.

We will invest in our go to market, specifically targeting regions and verticals that offer the most attractive ROI.

These go to market investments will also focus on achieving product market fit and scaling our newer innovations such as identity resilient platform and rubric AGL cloud.

Now turning to guidance for the fourth quarter and full year fiscal 2026.

In Q4, we expect revenue of $341 million to $343 million up 33% or approximately 30% when normalized for material rights.

We expect non-GAAP EPS of negative <unk> to negative 10.

Based on approximately 201 million weighted average shares outstanding.

Bipul Sinha: For the full year fiscal 2026, we now expect subscription ARR in the range of $1,439 million to 1,443 million, reflecting a year-over-year growth rate of approximately 32%. We expect total revenue for the full year fiscal 2026 in the range of $1,280 million to 1,282 million, up approximately 44% or 35% when normalized for material rights. We expect material rights related to our cloud transformation to contribute approximately $68 million to revenue in fiscal year 2026. We expect non-GAAP subscription ARR contribution margins of approximately 9%. We expect non-GAAP EPS of -$0.20 to -$0.16 based on approximately 197 million weighted average shares outstanding for the full year. We expect free cash flow of $194 million to 202 million.

For the full year fiscal 2026, we now expect subscription ARR in the range of $1,439 million to 1,443 million, reflecting a year-over-year growth rate of approximately 32%. We expect total revenue for the full year fiscal 2026 in the range of $1,280 million to 1,282 million, up approximately 44% or 35% when normalized for material rights. We expect material rights related to our cloud transformation to contribute approximately $68 million to revenue in fiscal year 2026. We expect non-GAAP subscription ARR contribution margins of approximately 9%. We expect non-GAAP EPS of -$0.20 to -$0.16 based on approximately 197 million weighted average shares outstanding for the full year. We expect free cash flow of $194 million to 202 million.

For the full year fiscal 2006, we now expect subscription there are in the range of $1 billion and $439 million to $1 billion $443 million, reflecting a year over year growth rate of approximately 32% we.

We expect total revenue for the full year fiscal 2026 in the range of $1 $280 million to $1 billion $282 million up approximately 44% or 35% when normalized for material rates.

We expect material rights related to our cloud transformation to contribute approximately $68 million to revenue in fiscal year 2026.

We expect non-GAAP subscription are our contribution margins of approximately 9%.

We expect non-GAAP EPS of <unk> 20.

The negative 16.

Based on approximately 197 million weighted average shares outstanding for the full year.

We expect free cash flow of $94 million to $202 million.

Bipul Sinha: As we progress through the final stages of our successful cloud journey, our reported revenue growth has seen significant tailwinds from our cloud transformation, including Material Rights in fiscal 2026. In fiscal 2027, dynamics related to our successful cloud transformation and a substantial reduction in Material Rights revenue will represent a headwind to our reported revenue growth. As a result, we anticipate that revenue growth on a reported basis will lag Subscription ARR growth by a few percentage points in fiscal 2027. However, normalized revenue growth will be ahead of Subscription ARR growth. As we have always communicated, Subscription ARR is the primary top-line metric to evaluate our business performance, as it is not impacted by the aforementioned accounting dynamics related to our cloud transformation.

As we progress through the final stages of our successful cloud journey, our reported revenue growth has seen significant tailwinds from our cloud transformation, including Material Rights in fiscal 2026. In fiscal 2027, dynamics related to our successful cloud transformation and a substantial reduction in Material Rights revenue will represent a headwind to our reported revenue growth. As a result, we anticipate that revenue growth on a reported basis will lag Subscription ARR growth by a few percentage points in fiscal 2027. However, normalized revenue growth will be ahead of Subscription ARR growth. As we have always communicated, Subscription ARR is the primary top-line metric to evaluate our business performance, as it is not impacted by the aforementioned accounting dynamics related to our cloud transformation.

As we progress through the final stages of our successful cloud journey, our reported revenue growth has seen significant tailwind from a cloud transformation.

<unk> material rights in fiscal 2026.

In fiscal 'twenty seven dynamics led to a successful cloud transformation and a substantial reduction in material rights revenue will represent a headwind to our reported revenue growth.

As a result, we anticipate that revenue growth on a reported basis will lag subscription AOR growth by a few percentage points in fiscal 'twenty seven.

However, normalized revenue growth will be ahead of subscription growth.

As we have always communicated subscription era is the primary topline metric to evaluate our business performance as it is not impacted by the aforementioned accounting dynamics related to our cloud transformation.

Bipul Sinha: In terms of profitability, we will continue to stay focused on taking advantage of the market opportunity in cybersecurity and AI while balancing growth with improved efficiency. Based on our current investment plans, we expect to deliver modest improvement in our subscription ARR contribution margin and modestly higher free cash flow for the fiscal year 2027. In addition, we included some additional modeling notes in our investor presentation. In closing, we are pleased with our strong performance in Q3. We look forward to finishing the year strong given our leadership, innovation, and ability to execute on a large and growing market opportunity. With that, we'd like to open up the call for any questions. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star one on your touch-tone phone.

In terms of profitability, we will continue to stay focused on taking advantage of the market opportunity in cybersecurity and AI while balancing growth with improved efficiency. Based on our current investment plans, we expect to deliver modest improvement in our subscription ARR contribution margin and modestly higher free cash flow for the fiscal year 2027. In addition, we included some additional modeling notes in our investor presentation. In closing, we are pleased with our strong performance in Q3. We look forward to finishing the year strong given our leadership, innovation, and ability to execute on a large and growing market opportunity. With that, we'd like to open up the call for any questions.

In terms of profitability, we will continue to stay focused on taking advantage of the market opportunity in cyber security and AI, while balancing growth with improved efficiency.

Based on our current investment plans, we expect to deliver modest improvement in our subscription are our contribution margin and modestly higher free cash flow for the fiscal year 2027.

In addition, we included some additional modeling notes and our investor presentation.

In closing we are pleased with our strong performance in the third quarter, we look forward to finishing the year strong given our leadership innovation and ability to execute on a large and growing market opportunity with that wed like to open up the call for any questions.

[Company Representative]: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star one on your touch-tone phone.

Okay.

Thank you.

Ladies and gentlemen, we will now begin the question and answer session.

Should you have a question. Please press star one on your Touchtone phone.

Bipul Sinha: You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star two. If you're using a speakerphone, please lift the handset before pressing any keys. In the interest of time, please limit yourself to one question. One moment, please. Your first question comes from Suket Kalia of Barclays. Your line is already open. Okay, great. Hey, guys. Thanks for taking my question and nice quarter. Thank you. Thank you. Thank you. Absolutely. Bipul, maybe for you, it's very clear that you're taking share in kind of the core cyber resilience, right? That first of three pillars. But you're also growing other businesses like Identity. And so I'm curious, how additive can Identity be to an average data protection deal?

You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star two. If you're using a speakerphone, please lift the handset before pressing any keys. In the interest of time, please limit yourself to one question. One moment, please. Your first question comes from Suket Kaalia of Barclays. Your line is already open.

You'll hear a prompt Mr hand, that's been raised.

Should you wish to decline from the polling process. Please press star two.

If you are using a speaker phone please lift the handset before pressing any keys.

In the interest of time, please limit yourself to one question one moment please.

Your first question comes from the Cat Korea of Barclays.

Your line is already open.

Suket Kaalia: Okay, great. Hey, guys. Thanks for taking my question and nice quarter.

Okay, Great Hey, guys. Thanks for taking my question and nice quarter.

Bipul Sinha: Thank you.

Thank you. Thank you Paul.

[Analyst]: Thank you.

Kiran Choudary: Thank you.

Suket Kaalia: Absolutely. Bipul, maybe for you, it's very clear that you're taking share in kind of the core cyber resilience, right? That first of three pillars. But you're also growing other businesses like Identity. And so I'm curious, how additive can Identity be to an average data protection deal?

Absolutely.

Maybe maybe for you.

It's very clear that you are taking share in kind of the core cyber resilience right that first of three pillars.

But youre also growing other businesses like identity.

And so I'm curious how additive can identity be.

Average data protection deal.

Bipul Sinha: And maybe relatedly, is Identity replacing any established tools, or is that creating new budget as you sell increasingly to CISOs? Thanks. Identity is a completely additive to the deal. So it is a net new buyer for Rubrik. We are selling Identity to the CISO organization, to IAM persona. And in some cases, we are replacing legacy or new-gen vendor, a new-gen identity recovery vendor. In other cases, it's a white space. Nevertheless, it's a net new buyer for Rubrik, which is a CISO organization, and a net new solution that we have created completely from scratch. In fact, this product went into GA, first GA in December last year. And we are seeing 40% of new customers last quarter is net new to Rubrik. So this is very exciting. Suket, this is Kiran.

And maybe relatedly, is Identity replacing any established tools, or is that creating new budget as you sell increasingly to CISOs? Thanks.

And maybe relatedly is its identity, replacing any established tools or or is that creating new budget.

As you sell increasingly the seasons. Thanks.

Bipul Sinha: Identity is a completely additive to the deal. So it is a net new buyer for Rubrik. We are selling Identity to the CISO organization, to IAM persona. And in some cases, we are replacing legacy or new-gen vendor, a new-gen identity recovery vendor. In other cases, it's a white space. Nevertheless, it's a net new buyer for Rubrik, which is a CISO organization, and a net new solution that we have created completely from scratch. In fact, this product went into GA, first GA in December last year. And we are seeing 40% of new customers last quarter is net new to Rubrik. So this is very exciting.

Identity is a completely additive to the deal. So it is a net new buyer for Robert we are selling identity to the CSO organization to I am.

Persona.

And in some cases, we are replacing legacy or new Gen vendor, a new gen identity recovery vendor and other cases is the white space, but nevertheless is a net new buyer for rubric, which is the <unk> organization.

And then net new solution that we have created completely from scratch. In fact this product went into the year last year in December last year.

And we are seeing 40% of new customers last quarter is net new to rubric. So this is very exciting.

Kiran Choudary: Suket, this is Kiran.

So I kept this is Karen I also wanted to add that in my prepared remarks, I had mentioned that our NR was again, 120% plus for the quarter and while all the drivers were good contributors the security component cross 40%.

Bipul Sinha: I also wanted to add that in my prepared remarks, I'd mentioned that our NRR was again 120% plus for the quarter. While all the drivers were good contributors, the security component crossed 40%. Identity is one of the key components of that, or drivers for that. That's super helpful. I would love to squeeze in just one housekeeping question, Kiran, maybe if I can for you. The SaaS ARR line really speaks for itself. But I was wondering if you could just comment on the non-SaaS ARR line, right? There's an element of there that's conversion. There's also some natural churn. Since we're all together here on the call, can you just talk about how we should think about modeling that going into Q4 and maybe into next year? Thanks. Sure, Suket. I'll add my thoughts to that.

I also wanted to add that in my prepared remarks, I'd mentioned that our NRR was again 120%+ for the quarter. While all the drivers were good contributors, the security component crossed 40%. Identity is one of the key components of that, or drivers for that.

Identity is one of the key components of that are drivers for that.

Suket Kaalia: That's super helpful. I would love to squeeze in just one housekeeping question, Kiran, maybe if I can for you. The SaaS ARR line really speaks for itself. But I was wondering if you could just comment on the non-SaaS ARR line, right? There's an element of there that's conversion. There's also some natural churn. Since we're all together here on the call, can you just talk about how we should think about modeling that going into Q4 and maybe into next year? Thanks.

Yeah.

That's super helpful.

I would love to squeeze in just one housekeeping question here and maybe if I can for you.

The SaaS AOR line really speaks for itself, but I was wondering if you could just comment on the non SaaS AOR alignment right. There is an element of there. That's conversion. There's also some natural churn can you since we're all together here on the call can you just talk about how we should think about modeling that going into Q4 and maybe into next year. Thanks.

Kiran Choudary: Sure, Suket. I'll add my thoughts to that.

Sure.

I'll add my thoughts to that so as you know we are a predominantly our cloud SaaS business. Now we are very pleased with how the cloud transformation has progressed in the last few years. This quarter, we were about 87%.

Bipul Sinha: So as you know, we are predominantly a cloud SaaS business now. We are very pleased with how the cloud transformation has progressed in the last few years. This quarter, we were around 87% cloud ARR as a percentage of subscription, and we grew 53%. When you look at the non-cloud line, that is one of the lines which is also contributing to the cloud ARR growth, one of the smaller components, but is contributing. So as a result, that declines. And that's declined now for a few quarters and will continue a bit more because we believe there is more room to run in our cloud ARR, the cloud business as a percentage of subscription ARR. Very helpful. Thanks. Thank you, Suket. Your next question comes from Matt Martino of Goldman Sachs. Your line is already open. Hey, guys. Thanks a lot. Yeah, thanks for taking the question, guys.

So as you know, we are predominantly a cloud SaaS business now. We are very pleased with how the cloud transformation has progressed in the last few years. This quarter, we were around 87% cloud ARR as a percentage of subscription, and we grew 53%. When you look at the non-cloud line, that is one of the lines which is also contributing to the cloud ARR growth, one of the smaller components, but is contributing. So as a result, that declines. And that's declined now for a few quarters and will continue a bit more because we believe there is more room to run in our cloud ARR, the cloud business as a percentage of subscription ARR.

Cloud era as a percentage of subscription and we grew 53%.

When you look at the non cloud Ryan that is one of the lines, which is also contributing to the cloud anr growth one of the smaller components, but is contributing so as a result.

That the clients and has declined now for a few quarters and will continue a bit more because we believe there is more room to run in our cloud.

The cloud business as opposed to their subscription Naylor.

Suket Kaalia: Very helpful. Thanks.

Very helpful. Thanks.

[Analyst]: Thank you, Suket.

Okay.

[Company Representative]: Your next question comes from Matthew Martino of Goldman Sachs. Your line is already open.

Your next question comes from Matt Martino of Goldman Sachs. Your line is all right guys. Thanks.

Matthew Martino: Hey, guys. Thanks a lot. Yeah, thanks for taking the question, guys.

Thanks, a lot yes. Thanks for taking the question guys. Therefore into your comment that bookings from legacy replacement accelerated year over year stood out to me I guess from your perspective, what's driving the acceleration there is that the modernization ahead of AI that you flagged in the prepared remarks, or maybe a growing recognition from CIO is that they simply can't wait to modernize.

Bipul Sinha: Bipul, your comment that bookings from legacy replacement accelerated year over year stood out to me. I guess from your perspective, what's driving the acceleration there? Is it the modernization ahead of AI that you flagged in the prepared remarks, or maybe a growing recognition from CIOs that they simply can't wait to modernize due to the growing threat factors out there? Thanks. Thanks. It's both. It's definitely preparing for AI and modernizing the infrastructure. That's a big driver. And the other driver is cyber attacks are inevitable. And Rubrik has a unique platform that delivers cyber recovery leveraging our preemptive recovery engine that is unique in the marketplace. And our speed of recovery is the key factor in making this decision. So CIOs and CISOs are looking at their legacy landscape, including new-gen vendors, and saying that I'm at risk, cyber attacks is going to come to me.

Bipul, your comment that bookings from legacy replacement accelerated year over year stood out to me. I guess from your perspective, what's driving the acceleration there? Is it the modernization ahead of AI that you flagged in the prepared remarks, or maybe a growing recognition from CIOs that they simply can't wait to modernize due to the growing threat factors out there? Thanks.

Due to the growing threat factors out there. Thanks.

Bipul Sinha: Thanks. It's both. It's definitely preparing for AI and modernizing the infrastructure. That's a big driver. And the other driver is cyber attacks are inevitable. And Rubrik has a unique platform that delivers cyber recovery leveraging our preemptive recovery engine that is unique in the marketplace. And our speed of recovery is the key factor in making this decision. So CIOs and CISOs are looking at their legacy landscape, including new-gen vendors, and saying that I'm at risk, cyber attacks is going to come to me.

Thanks, It's book is definitely preparing preparing for AI and modernizing the infrastructure, that's a big driver and other driver side.

Cyber attacks are inevitable and rubric has a unique platform.

<unk> delivered cyber recovery, leveraging our preemptive recovery engine that is unique in the marketplace and and our speed of recovery is the key factor in making this decision.

So CIO and <unk>, they're looking at their legacy landscape, including new Gen vendors, and saying that I am at risk cyber attacks is going to come to me and if I can keep my business up and running it threatens the very existence of the business and Thats why it is also driving legacy replacement.

Bipul Sinha: If I can't keep my business up and running, it threatens the very existence of the business. That's what is also driving legacy replacement. Question for Fox Bipul. Thanks, Matt. Your next question comes from Fatima Boolani of Citi. Your line is already open. Oh, good afternoon. Thank you for taking my questions. Bipul, this one I want to direct to you. Since your IPO, there has been an absolute avalanche of new product introductions and new capabilities, and you are showing and putting points on the board with respect to install base and new customer uptake and adoption. What I wanted to ask you was just with respect to the platform having expanded so dramatically in the span of the last 18 months. I'm curious how that's influencing your overall sales strategy.

If I can't keep my business up and running, it threatens the very existence of the business. That's what is also driving legacy replacement.

Matthew Martino: Question for Fox Bipul.

Actual performance level.

[Analyst]: Thanks, Matt.

Yeah.

Thanks, Matt.

[Company Representative]: Your next question comes from Fatima Boolani of Citi. Your line is already open.

Your next question comes from.

Fatima ballooning of Citi. Your line is already open.

Fatima Boolani: Oh, good afternoon. Thank you for taking my questions. Bipul, this one I want to direct to you. Since your IPO, there has been an absolute avalanche of new product introductions and new capabilities, and you are showing and putting points on the board with respect to install base and new customer uptake and adoption. What I wanted to ask you was just with respect to the platform having expanded so dramatically in the span of the last 18 months. I'm curious how that's influencing your overall sales strategy.

Oh, good afternoon, and thank you for taking my question.

Nipple, that's one I wanted to direct to you since your IPO.

Been an absolute avalanche of new product introductions, and new capability and you are showing in putting points on the board with respect to our installed base and new customer uptake.

Okay and adoption.

Wanted to ask you was just.

Back to the platform have any expanded so dramatically in the span of the last 18 months.

I'm curious how that's influencing your overall sales strategy.

Bipul Sinha: And really, the spirit of the question here is what's become very en vogue in certainly the companies we cover and the broader enterprise software: this notion of providing flex or consumption-oriented type vehicles to enable customers to have a more fulsome and frictionless access to the full portfolio. So a long-winded way to ask you: is that something that you would potentially consider just given how quickly and how robustly the platform's expanded, and how would you ideate around that? Thank you. Thanks, Fatima. So if you look at Rubrik, from day one, our strategy has been a two-platform company. And you might ask, what is a platform company? Our definition of a platform company is a platform when the customer adopts more than one product, their value from the platform goes up. I'll give you an example.

And really, the spirit of the question here is what's become very en vogue in certainly the companies we cover and the broader enterprise software: this notion of providing flex or consumption-oriented type vehicles to enable customers to have a more fulsome and frictionless access to the full portfolio. So a long-winded way to ask you: is that something that you would potentially consider just given how quickly and how robustly the platform's expanded, and how would you ideate around that? Thank you.

Really the spirit of the question here is.

What has become very involved in certainly the companies we cover in the broader enterprise software in this notion of.

Providing flex or <unk>.

Function oriented type vehicles to enable customers to have a more fulsome and frictionless access to the full portfolio.

A long winded way to ask you is that something that you would potentially consider just given how quickly and robustly the popcorn expanded and how would your idea around that thank you.

Bipul Sinha: Thanks, Fatima. So if you look at Rubrik, from day one, our strategy has been a two-platform company. And you might ask, what is a platform company? Our definition of a platform company is a platform when the customer adopts more than one product, their value from the platform goes up. I'll give you an example.

Thanks for Tomorrow.

So if you look at rubric from day, one our strategy has been a two platform company and you might ask what is a platform company our definition of a platform company is.

Product than the platform and the customer adopt more than one product.

<unk> from the platform goes up I'll give you. An example, when our customers buy Rubin security cloud for both data center as well as AWS or Azure cloud. If there is a threat actor in the cloud and simply factories in the data center, we can auto correlated threat and give you the full.

Bipul Sinha: When our customers buy Rubrik Security Cloud for both data center as well as AWS or Azure Cloud, if there is a threat actor in the cloud and same threat actor is in the data center, we can auto-correlate that and give you the full cyber resilience, intelligence, and recovery on that threat actor. You don't have to pull the logs into a Splunk and then try to analyze and figure out what's going on. Rubrik automatically does that for you. Now, the same platform is expanded into Identity. So now you can actually see what's happening to your identity with data when the privilege gets escalated. Now, the same platform, we have launched a new product suite in Rubrik Agent Cloud. So now we have two distinct product suites, Rubrik Security Cloud for cyber resilience, Rubrik Agent Cloud for enterprise AI acceleration.

When our customers buy Rubrik Security Cloud for both data center as well as AWS or Azure Cloud, if there is a threat actor in the cloud and same threat actor is in the data center, we can auto-correlate that and give you the full cyber resilience, intelligence, and recovery on that threat actor. You don't have to pull the logs into a Splunk and then try to analyze and figure out what's going on. Rubrik automatically does that for you. Now, the same platform is expanded into Identity. So now you can actually see what's happening to your identity with data when the privilege gets escalated. Now, the same platform, we have launched a new product suite in Rubrik Agent Cloud. So now we have two distinct product suites, Rubrik Security Cloud for cyber resilience, Rubrik Agent Cloud for enterprise AI acceleration.

Cyber resilience intelligence and recovery on that threat actors you don't have to pull the logs into Splunk, and then try to analyze and figure out what's going on the rubric automatically does that for you know the same platform is expanding into identity. So now you can actually see what's happening to your identity vis vis <unk>.

When the privileged gets escalated.

Now the same platform, we have launched a new product suite and Rubig agent cloud. So now we have two distinct product suite will bring security cloud for cyber resilience rubric agent cloud for enterprise AI acceleration.

Bipul Sinha: So our strategy has always been to give customers a comprehensive platform and be the strategic IT vendor for that customer for years and years to come. Obviously, we want to make it easier for our customers to consume Rubrik product, try new Rubrik product. We don't easily lose customers because we provide a mission-critical solution, and customer retention has been one of the hallmarks of Rubrik. So we are looking at all avenues going forward to make it easier for our customers to adopt Rubrik, consume Rubrik, because selling is only 5% of my job. 95% of my job is to ensure customer delight, the first-use experience, repeated-use experience, expansion experience, and providing end-to-end cyber resilience. Okay. Thank you, Fatima. Next question. Your next question comes from John DiFucci of Guggenheim. Your line is already open. Thank you. Thank you. This is an impressive quarter.

So our strategy has always been to give customers a comprehensive platform and be the strategic IT vendor for that customer for years and years to come. Obviously, we want to make it easier for our customers to consume Rubrik product, try new Rubrik product. We don't easily lose customers because we provide a mission-critical solution, and customer retention has been one of the hallmarks of Rubrik. So we are looking at all avenues going forward to make it easier for our customers to adopt Rubrik, consume Rubrik, because selling is only 5% of my job. 95% of my job is to ensure customer delight, the first-use experience, repeated-use experience, expansion experience, and providing end-to-end cyber resilience.

So our strategy is.

Strategy has always been give customer a comprehensive platform and be the strategic IP vendor for that customer for years and years to come.

Obviously, we want to make it easier for our customers to consume rubik product try new rubric product and we don't easily lose customers because we provide a mission critical solution and customer retention has been one of the hallmarks of rubric. So.

We're looking at all avenues.

Going forward to make it easier for our customers to adopt rubric consumed rubric, because selling is only 5% of my job 95% of my job is to ensure customer delight. The first user experience repeated use experience expansion experience and providing end to end cyber resilience.

[Analyst]: Okay. Thank you, Fatima. Next question.

Yeah.

Okay.

Next question.

[Company Representative]: Your next question comes from John DiFucci of Guggenheim. Your line is already open.

Your next question comes from John <unk>.

Fucci of Guggenheim Your line is already open.

John DiFucci: Thank you. Thank you. This is an impressive quarter.

Thank you.

Thank you. This is this is a.

<unk>.

Impressive quarter, and just like to congratulate the extended routine beyond even those on this call.

Bipul Sinha: And just like to congratulate the extended Rubrik team beyond even those on this call. Bipul, I want to sort of go high level with you on something because you hit something that everybody's hitting now, and we are just trying to figure out. It seems really early when it comes to securing AI agents. But things can move really fast. It seems that everybody in security is saying their best position to serve this role, which looks like it can be huge, right? But can you explain why Rubrik is well-positioned to capture this opportunity? Or maybe even just part of the opportunity. And if that's the case, what else do customers—what else will they need to have beyond Rubrik to solve this problem? Thanks, John. That's a really good question. If you take a step back, Rubrik is all about data, identity, and business applications.

And just like to congratulate the extended Rubrik team beyond even those on this call. Bipul, I want to sort of go high level with you on something because you hit something that everybody's hitting now, and we are just trying to figure out. It seems really early when it comes to securing AI agents. But things can move really fast. It seems that everybody in security is saying their best position to serve this role, which looks like it can be huge, right? But can you explain why Rubrik is well-positioned to capture this opportunity? Or maybe even just part of the opportunity. And if that's the case, what else do customers—what else will they need to have beyond Rubrik to solve this problem?

Before I wanted to sort of go high level with you on something because you hit something that everybody's hitting now and we.

I'm just trying to figure out it seems really early when it comes to securing AI agents the things can move really fast.

It seems that everybody is security is saying, they're best positioned to serve this rule, which looks like it can be huge rate can you explain why rubric is well positioned to capture this opportunity or maybe even just part of the opportunity and that's the case would helps the customers.

They need to have beyond for Britain to solve this problem.

Bipul Sinha: Thanks, John. That's a really good question. If you take a step back, Rubrik is all about data, identity, and business applications.

Thanks, John that's a that's a really good question.

If you take a step back.

Rubric is all about data I.

I'd entity and business applications.

Bipul Sinha: These are the three main things even to deliver AI. AI is not a purely security question. Neither is it a purely operations question. AI sits at the intersection of security, which is risk management and governance, plus the operations, which is how do you deliver the accurate AI? How do you fine-tune the model? How do you create real-time operational guardrails and observability and undo actions if they misbehave because of a cyber compromise or hallucination? And Rubrik is squarely at the intersection of operations and security. So this is a natural place for us to deliver a complete agentic operations platform, agentic management platform, if I can be so bold to call it agentic ERP. And what does agentic ERP need to deliver? Three things. How many agents do I have, including the ones that are sanctioned as well as the ones that are non-sanctioned?

These are the three main things even to deliver AI. AI is not a purely security question. Neither is it a purely operations question. AI sits at the intersection of security, which is risk management and governance, plus the operations, which is how do you deliver the accurate AI? How do you fine-tune the model? How do you create real-time operational guardrails and observability and undo actions if they misbehave because of a cyber compromise or hallucination? And Rubrik is squarely at the intersection of operations and security. So this is a natural place for us to deliver a complete agentic operations platform, agentic management platform, if I can be so bold to call it agentic ERP. And what does agentic ERP need to deliver? Three things. How many agents do I have, including the ones that are sanctioned as well as the ones that are non-sanctioned?

And these are the three main things even to deliver AI.

AI is north of purely security question.

Neither it is purely operations question.

I said at the intersection of security, which is risk management and governance, plus the operation, which is how do you deliver the I call. It how do you fine tune the model how do you create real time operational guardrails and observer ability and undo action if they misbehave because of.

<unk> or cyber compromise or hallucination.

And globally is this quarterly at the intersection of operations and security. So this is a natural place for us to deliver a complete.

Engine peak operations platform Agentic management platform.

If I can be so bold to call. It it didn't think ERP.

And what does they didn't think ERP needs to deliver three things.

How many against who I have including the ones that is sanctioned as well as the ones that are non Samsung.

Bipul Sinha: What the hell they are doing? What do I want them to do in terms of my operational guardrail? Are they hallucinating? Can I make them more accurate so that humans can be confident of the results of the AI agents? And if they misbehave, can I press the rewind button and take away the effect of them, of misbehaving agent? So this requires an end-to-end complete platform across monitor, govern, and remediate. So this is a very natural extension to Rubrik's core strategy. And you know what? On top of it, Rubrik is also a secure data lake. So we have additional opportunity to bring Rubrik data to do fine-tuning of the model to deliver more accuracy with Predibase acquisition.

What the hell they are doing? What do I want them to do in terms of my operational guardrail? Are they hallucinating? Can I make them more accurate so that humans can be confident of the results of the AI agents? And if they misbehave, can I press the rewind button and take away the effect of them, of misbehaving agent? So this requires an end-to-end complete platform across monitor, govern, and remediate. So this is a very natural extension to Rubrik's core strategy. And you know what? On top of it, Rubrik is also a secure data lake. So we have additional opportunity to bring Rubrik data to do fine-tuning of the model to deliver more accuracy with Predibase acquisition.

What the Hell they are doing.

What do I want them to do in terms of my operational guardrails are they're hallucinating can I make them more accurate so that humans can be confident of the resilience of the AI agent.

And if they misbehave can I take a.

First the rewind button and take away the effect of them off.

Of misbehaving agent. So this requires an end to end complete platform across monitor galvan and remediate.

So this is a very natural extension to rubik's quarter strategy.

And you know what on top of it. The rubric is also secured data lake. So we have additional opportunity to bring rubric data to.

To do fine tuning of tomorrow to deliver more accuracy with previous acquisition, we have the ability to virtualized gpus to reduce the cost or to multiplex different training model to be able to deliver.

Bipul Sinha: We have the ability to virtualize GPU, to reduce the cost, or to multiplex different training models to be able to deliver perfect guardrail for our customers to have confidence in their agentic actions. So we believe that we are strongly positioned to deliver this new infrastructure product suite, Rubrik Agent Cloud. We are integrating this across the ecosystem. You saw our announcement with Copilot Studio, with AWS Bedrock. We are extending and expanding this platform across all the tools that users can use to build agents. This is, again, a switch and opportunity, just like cyber resilience across all business applications.

We have the ability to virtualize GPU, to reduce the cost, or to multiplex different training models to be able to deliver perfect guardrail for our customers to have confidence in their agentic actions. So we believe that we are strongly positioned to deliver this new infrastructure product suite, Rubrik Agent Cloud. We are integrating this across the ecosystem. You saw our announcement with Copilot Studio, with AWS Bedrock. We are extending and expanding this platform across all the tools that users can use to build agents. This is, again, a switch and opportunity, just like cyber resilience across all business applications.

Guardrail for our customers to have confidence in the agency action.

So we believe that we are strongly positioned to deliver this new infrastructure product suite rubric agent cloud.

And then we are integrating this across the ecosystem you saw our announcement with copilot to studio with AWS bedrock.

Extending and expanding this platform across all the tools that users can use to build agents and this is again, a <unk> opportunity just like cyber resilience across all business applications.

Bipul Sinha: Rubrik Agent Cloud is a product suite across all agent tool builders, whether it's AWS, Azure, GCP, M365, Salesforce, Agentforce, no matter whether it is infrastructure as a service agent or platform as a service agent. Rubrik Agent Cloud is giving our customers the confidence to do the AI transformation, deploy agents at a scale, and truly take advantage of this AI opportunity. Thank you, Bipul. That is the first time I've heard anything about this described in a way that I can understand. So thank you very much. Thank you, John. Next question. Your next question comes from Brad Zelnick of Deutsche Bank. Your line is already open. Excellent. Thank you so much for taking the question. And I echo my congrats as well. What a great quarter. And my question actually follows on what John just asked about Rubrik Agent Cloud across monitor, govern, and remediate.

Rubrik Agent Cloud is a product suite across all agent tool builders, whether it's AWS, Azure, GCP, M365, Salesforce, Agentforce, no matter whether it is infrastructure as a service agent or platform as a service agent. Rubrik Agent Cloud is giving our customers the confidence to do the AI transformation, deploy agents at a scale, and truly take advantage of this AI opportunity.

<unk> cloud is.

<unk> suite across all engine pool builders, whether it's AWS Azure GCB and <unk> hundred 65, Salesforce agent or no matter, whether it is infrastructure as a service.

Agent or platform as a service agent rubric agent cloud is giving our customers the confidence to do the transformation deploy agents at the scale and truly take advantage of Dci opportunity.

John DiFucci: Thank you, Bipul. That is the first time I've heard anything about this described in a way that I can understand. So thank you very much.

Thank you people that that actually.

That is the first time I've heard anything about this described in a way that I.

Thank you very much.

[Analyst]: Thank you, John. Next question.

Thank you John next question.

[Company Representative]: Your next question comes from Brad Zelnick of Deutsche Bank. Your line is already open. Excellent. Thank you so much for taking the question. And I echo my congrats as well. What a great quarter. And my question actually follows on what John just asked about Rubrik Agent Cloud across monitor, govern, and remediate.

Your next question comes from Brad Zelnick of Deutsche Bank. Your line is already open.

Excellent. Thank you so much for taking the question and I Echo my congrats.

Well, what a great quarter and my question actually follows on on what John just asked about rubric agent cloud.

Across monitor governance and remediate and.

Bipul Sinha: I reflect on the announcement this week, adding Amazon Bedrock along with Copilot Studio support. Bipul, how are these partnerships structured with the AI platforms? Is there co-investment, excuse me, in go-to-market and co-innovation on product? And what are the ways you'll monetize Rubrik Agent Cloud along with the platforms? Thank you. Thanks, Brad. We have been working with hyperscalers for a number of years. Our big partnership started with cyber resilience, and we have found tremendous success. We have hundreds, if not thousands, of customers with them. And joint customers where we are helping hyperscalers deliver a complete business transformation, cloud transformation with confidence of cyber resilience. Now we are expanding on that partnership to bring Rubrik Agent Cloud. And so the idea is, if you develop your agents on AWS Bedrock or on Copilot Studio, you can manage that on Rubrik Agent Cloud.

Bipul Sinha: I reflect on the announcement this week, adding Amazon Bedrock along with Copilot Studio support. Bipul, how are these partnerships structured with the AI platforms? Is there co-investment, excuse me, in go-to-market and co-innovation on product? And what are the ways you'll monetize Rubrik Agent Cloud along with the platforms? Thank you. Thanks, Brad. We have been working with hyperscalers for a number of years. Our big partnership started with cyber resilience, and we have found tremendous success. We have hundreds, if not thousands, of customers with them. And joint customers where we are helping hyperscalers deliver a complete business transformation, cloud transformation with confidence of cyber resilience. Now we are expanding on that partnership to bring Rubrik Agent Cloud. And so the idea is, if you develop your agents on AWS Bedrock or on Copilot Studio, you can manage that on Rubrik Agent Cloud.

On the announcement this week, adding Amazon bedrock, along with copilot studio support.

How are these partnership structured with the AI platforms is there a co innovation.

Investments excuse me and go to market and co innovation on product and what are the waynesville monetize rubric agent cloud.

Along with the platforms. Thank you.

Thanks, Brad.

I've been working with hyper scale for a number of years.

Our initial our big partnership has started with cyber resilience and we have found tremendous success.

Hundreds if not thousands of customers with them and joint customers. We are where we are helping hyperscale is delivered.

Complete business transformation cloud transformation with confidence.

<unk> resilience and now we're expanding on that partnership to bring rubric agent cloud and so the idea is if you develop your agents on AWS bedrock on co pilot. The studio you can manage that on rubric agents cloud and so we have rebuilt go to market partnership.

Bipul Sinha: And so we have pre-built go-to-market partnership with hyperscalers, and we expect to leverage those existing infrastructures with the new teams that are involved on the AI side to expand the go-to-market. From a monetization standpoint, Bipul, these are dedicated SKUs that are incremental. The strategy isn't necessarily to migrate customers up different tiers of the core product. Is there anything we should know about the way that you'll monetize? Rubrik Agent Cloud is a completely separate product suite. It is early where the product is in beta, but we are getting very strong customer feedback on these products. I'll give you a couple of examples. A very large healthcare organization said that they are slow to adopt agents because they have yet to find a platform that they can confidently operationalize agents, which means that monitor, and have visibility into agents.

And so we have pre-built go-to-market partnership with hyperscalers, and we expect to leverage those existing infrastructures with the new teams that are involved on the AI side to expand the go-to-market.

With Hyperscale and we expect to leverage those existing infrastructure with the new teams that are involved on the AI side to expand the go to market.

Brad Zelnick: From a monetization standpoint, Bipul, these are dedicated SKUs that are incremental. The strategy isn't necessarily to migrate customers up different tiers of the core product. Is there anything we should know about the way that you'll monetize?

And from a monetization standpoint before these are dedicated skus that are incremental.

The strategy isn't necessarily to you know two to migrate customers up different tiers of the.

The core product is there anything we should know about the way that you monetize.

Bipul Sinha: Rubrik Agent Cloud is a completely separate product suite. It is early where the product is in beta, but we are getting very strong customer feedback on these products. I'll give you a couple of examples. A very large healthcare organization said that they are slow to adopt agents because they have yet to find a platform that they can confidently operationalize agents, which means that monitor, and have visibility into agents.

So rubric.

Agent cloud is a completely separate product suite.

Is early.

<unk> is in beta, but we are getting very strong customer feedback.

On these products I'll give you a couple of examples of very large health care.

Organization.

Said that they are slow to adopt agents because they have yet to find a platform that they can confidently operationalize agent, which means that monitor and have visibility into Asia.

Bipul Sinha: There was another pharma company where the exec said, "Why are we not having a product like Rubrik Agent Cloud already?" And they said that they see our vision as really enabling them to an agentic future, and this is the right idea. Obviously, all of this is very early, but we are very encouraged by the reaction. And obviously, we'll update you as we make progress, but I anticipate this to be a separate product suite that we'll sell. Very exciting stuff. And again, congrats to everybody. Thank you. Thank you, Brad. Next question. Your next question comes from Eric Heath of KeyBanc. Your line is already open. All right. Great. Thank you. Bipul, Kiran, I wanted to follow up on your comments about the strong beat and raise cadence that you've acknowledged and the outlook for Q4.

There was another pharma company where the exec said, "Why are we not having a product like Rubrik Agent Cloud already?" And they said that they see our vision as really enabling them to an agentic future, and this is the right idea. Obviously, all of this is very early, but we are very encouraged by the reaction. And obviously, we'll update you as we make progress, but I anticipate this to be a separate product suite that we'll sell.

There was another pharma company, where the exact said that well why are we not having a product like lubrication cloud already.

And they said that they see our vision as really enabling them to an agenda future and this is the right idea.

Obviously all of this is very early but we are very encouraged by the reaction and.

Obviously, we'll update you as we make progress, but I anticipate that to be a separate.

Product suite that will sell.

Brad Zelnick: Very exciting stuff. And again, congrats to everybody. Thank you.

Very exciting stuff and again congrats to everybody. Thank you.

[Analyst]: Thank you, Brad. Next question.

Thank you Brian next question.

[Company Representative]: Your next question comes from Eric Heath of KeyBanc. Your line is already open.

Your next question comes from Eric Keith of Keybanc. Your line is already open.

Eric Heath: All right. Great. Thank you. Bipul, Kiran, I wanted to follow up on your comments about the strong beat and raise cadence that you've acknowledged and the outlook for Q4.

Alright, great. Thank you.

Karen I wanted to follow up on your comments about the strong beat and raise cadence that you're acknowledging.

The outlook for Q4, when I look at the guidance shown on who's on a stronger growth rate than <unk>, which hasn't historically been the case. So can you just talk about the dynamic there is that purely a function of the sales count change this year or is it more so a reflection of that.

Bipul Sinha: When I look at the guide, it's shown a seasonally stronger growth rate than Q3, which hasn't historically been the case. So can you just talk about the dynamic there? Is that purely a function of the sales comp change this year? Is it more so a reflection of the strong pipeline you see or anything else to call out? Thanks. Thanks, Eric. This is Kiran. I'll take that one. So we're very pleased with the Q2 results we delivered in terms of scale and growth. That gave us the confidence to raise Q4 as well. It's about a 3% raise on the net new ARR, 3% plus based on the implied Q4 guide from the last quarter's call. But as you know, we run the business on an annual basis on net new ARR. We have spoken about that in the past as well.

When I look at the guide, it's shown a seasonally stronger growth rate than Q3, which hasn't historically been the case. So can you just talk about the dynamic there? Is that purely a function of the sales comp change this year? Is it more so a reflection of the strong pipeline you see or anything else to call out? Thanks.

<unk> pipeline is there anything else to call out.

Kiran Choudary: Thanks, Eric. This is Kiran. I'll take that one. So we're very pleased with the Q2 results we delivered in terms of scale and growth. That gave us the confidence to raise Q4 as well. It's about a 3% raise on the net new ARR, 3%+ based on the implied Q4 guide from the last quarter's call. But as you know, we run the business on an annual basis on net new ARR. We have spoken about that in the past as well.

Thanks, Eric This is Karen I'll take that one so we're very pleased with the Q3 results we delivered in terms of scale and growth.

It gave us the confidence to raise Q4 as well it's about us.

3% grades on the net there are 3% plus based on the implied Q4 guide from the last quarter's call.

But as you know we run the business on an annual basis on net near our we haven't spoken about that in the past as well. So we look at the total net new adds for the year really that's where we plan for and look for Delaware.

Bipul Sinha: So we look at the total net new ARR for the year. Really, that's what we plan for and look to deliver. So the annual comp plan changes have progressed really nicely, but we have to finish the year as well. And we can give you an update on that after Q4. Thanks, Karen. Thanks, Eric. Next question. Your next question comes from Greg Moskowitz of Mizuho. Your line is already open. Great. Thank you. And I'll add my congratulations on the strong execution. I'd like to go back to identity because identity recovery is off to a really strong start. And by the way, the feedback was also positive at AWS re:Invent this week. Bipul, when you look ahead, so Rubrik has many thousands of customers that you can potentially cross-sell into. And as you've noted, you're already landing with identity as well.

So we look at the total net new ARR for the year. Really, that's what we plan for and look to deliver. So the annual comp plan changes have progressed really nicely, but we have to finish the year as well. And we can give you an update on that after Q4.

So.

And welcome comp plan changes or progress really nicely, but we have to finish the year as well.

And we can give you an update on that after Q4.

Eric Heath: Thanks, Karen.

Thanks, Ken.

[Analyst]: Thanks, Eric. Next question.

Thanks, Eric next question.

[Company Representative]: Your next question comes from Gregg Moskowitz of Mizuho. Your line is already open.

Your next question comes from Craig.

Moscowitz of Mizuho. Your line is already open.

Gregg Moskowitz: Great. Thank you. And I'll add my congratulations on the strong execution. I'd like to go back to identity because identity recovery is off to a really strong start. And by the way, the feedback was also positive at AWS re:Invent this week. Bipul, when you look ahead, so Rubrik has many thousands of customers that you can potentially cross-sell into. And as you've noted, you're already landing with identity as well.

Great. Thank you and I'll add my congratulations on a strong execution I'd like to go back to identity, because definitely recovering is off to a really strong start and by the way. The feedback was also positive at AWS re invent this week.

But when you look ahead. So rubric has many thousands of customers that you can potentially cross sell into.

And as you've noted you already landing with identity as well. So when you look at identity recovery and now I got to the resilience.

Bipul Sinha: So when you look at identity recovery and now identity resilience in addition, how are you thinking about penetration rates for this part of the platform going forward? We believe that identity recovery is a widely applicable horizontal platform in terms of the identity security strategy that we have. And going from identity recovery to identity resilience, we are really adding before and during pieces to ensure that if there is a privilege escalation, what kind of sensitive data gets exposed to. And that's where we are bringing the DSPM capabilities with identity capabilities to expose the full risk. Because if you take a step back, cyber resilience assumes that the attacks will happen to you. So if you know that attacks will happen to you, you have to understand the risk of the attack and be able to remediate.

So when you look at identity recovery and now identity resilience in addition, how are you thinking about penetration rates for this part of the platform going forward?

<unk> how are you thinking about penetration rates for this for this part of the platform going forward.

We believe that identity recovery is a widely applicable horizontal platform.

Bipul Sinha: We believe that identity recovery is a widely applicable horizontal platform in terms of the identity security strategy that we have. And going from identity recovery to identity resilience, we are really adding before and during pieces to ensure that if there is a privilege escalation, what kind of sensitive data gets exposed to. And that's where we are bringing the DSPM capabilities with identity capabilities to expose the full risk. Because if you take a step back, cyber resilience assumes that the attacks will happen to you. So if you know that attacks will happen to you, you have to understand the risk of the attack and be able to remediate.

In terms of the identity security strategy that we have and going from identity recovery to identity resilience, we are really adding before and during thesis to ensure that if there is a privilege escalation what kind of.

Sensitive data gets exposed to and Thats, where we are bringing the DSP EM capabilities with identity capabilities to expose the full risk because you could take a step back cyber resilience assumes that the tax will happen to you. So if you know that attacks will happen to you you have to understand the risk of their back end to be able to.

And they did and the risk of that that you need to understand data risk I needed to understand the identity. This because you cant understand the full risk without understanding data and that indeed, the board and then in terms of remediation yogurt immediate both you'll need to do a fiber recovery on all the data to ensure that your applications are up and running plus you have to also go with identity system policy.

Bipul Sinha: The risk of the attack, you need to understand data risk, and you need to understand the identity risk. Because you can't understand the full risk without understanding data and identity both. And then in terms of remediation, you have to remediate both. You have to do a cyber recovery on all the data to ensure that your applications are up and running. Plus, you have to also recover identity system partially or fully. So we believe that for full cyber resilience, both identity and data is applicable everywhere. Obviously, these are early days. We are just over three quarters into it. We are just about $20 million in subscription ARR. We doubled our number of customers in Q3. The customer excitement is very, very high. I'll give you an example.

The risk of the attack, you need to understand data risk, and you need to understand the identity risk. Because you can't understand the full risk without understanding data and identity both. And then in terms of remediation, you have to remediate both. You have to do a cyber recovery on all the data to ensure that your applications are up and running. Plus, you have to also recover identity system partially or fully. So we believe that for full cyber resilience, both identity and data is applicable everywhere. Obviously, these are early days. We are just over three quarters into it. We are just about $20 million in subscription ARR. We doubled our number of customers in Q3. The customer excitement is very, very high. I'll give you an example.

So we believe that for full cyber resilience, both identity and data is applicable everywhere.

Mostly these are early days, we had just over three quarters into it.

Just about $20 million in subscription IRR, we doubled our number of customers in Q3.

The customer excitement is is very very high I'll give you. An example, our European consumer technology company.

Bipul Sinha: A European consumer technology company, they were really worried about Scattered Spider because one of their suppliers got hit. As you know, Scattered Spider is detrimental to identity systems as well as virtual machines because they are bypassing the traditional EDR. So there is increased awareness of the importance of identity systems, both full availability of the identity system plus the escalations, which are illegal, and how data gets impacted. So we have a full vision to really create a full cyber resilience solution. As we said, we are also partnering with CrowdStrike ITDR solution to provide end-to-end confidence for our customers, saying that Falcon will detect and will help roll back bad changes. Super helpful. Thank you, Bipul. Thank you, Greg. Next question. Your next question comes from Todd Coupland of CIBC. Your line is already open. Oh, great. Good evening, everyone.

A European consumer technology company, they were really worried about Scattered Spider because one of their suppliers got hit. As you know, Scattered Spider is detrimental to identity systems as well as virtual machines because they are bypassing the traditional EDR. So there is increased awareness of the importance of identity systems, both full availability of the identity system plus the escalations, which are illegal, and how data gets impacted. So we have a full vision to really create a full cyber resilience solution. As we said, we are also partnering with CrowdStrike ITDR solution to provide end-to-end confidence for our customers, saying that Falcon will detect and will help roll back bad changes.

They were really worried about.

It's scattered a spider because one of your suppliers got hit.

And as you know has gathered a spider is.

Detrimental to identity systems, as well as virtual machines, because they're bypassing the traditional edr. So there is increased awareness of importance of.

Identity systems both.

Full availability of that entity system, plus escalations, which are illegal and how data gets impacted so we have a full vision to really.

Create whole cyber resilience solution and as we said we are also partnering with goldstrike <unk> solution to provide end to end confidence for our customers, saying that.

Falcon will detect and will help roll back by changes.

Gregg Moskowitz: Super helpful. Thank you, Bipul.

Super helpful. Thank you level.

[Analyst]: Thank you, Gregg. Next question.

Okay next question.

[Company Representative]: Your next question comes from Todd Coupland of CIBC. Your line is already open.

Your next question comes from Todd Coupland of.

CIBC.

Your line is already open.

Todd Coupland: Oh, great. Good evening, everyone.

Oh, great good evening everyone.

Bipul Sinha: I wanted to ask about net new. That's been a little bit lumpy the last few quarters. I'm just wondering if the acceleration that you experienced this quarter and going into Q4, is that the new normal, or should this still be considered an area of volatility as we think about 2027? Thanks a lot. This is Karen. I'll take that one. So very pleased with the Q3. Net new ARR was a record for the company, $94 million. But the way to look at net new ARR really in our business is on an annual basis. And that's the number we plan for when we start a year. And there's obviously shifts between quarter to quarter because of deals, pipeline, etc. So I would focus on the annual number, including the guide.

I wanted to ask about Net New. That's been a little bit lumpy the last few quarters. I'm just wondering if the acceleration that you experienced this quarter and going into Q4, is that the new normal, or should this still be considered an area of volatility as we think about 2027? Thanks a lot.

I wanted to ask about net new that's been a little bit of a lumpy. The last few quarters and I'm. Just wondering if the acceleration that you experienced this quarter and going into Q4 is that the new normal or should this still be considered as an area of volatility as we think about 'twenty seven thanks a lot.

Kiran Choudary: This is Karen. I'll take that one. So very pleased with the Q3. Net new ARR was a record for the company, $94 million. But the way to look at net new ARR really in our business is on an annual basis. And that's the number we plan for when we start a year. And there's obviously shifts between quarter to quarter because of deals, pipeline, etc. So I would focus on the annual number, including the guide.

I thought this is Karen I'll take that one so.

We're pleased with the Q3 net new <unk> was a record for the company $94 million.

But the way to look at net new I really in our businesses on an annual basis and that's the number we planned for when we start a year and theres, obviously shifts between quarter to quarter.

Because of deals pipeline et cetera, So I would I would focus on the annual number including the guide and then there's going to be some quarterly movements because of compares to previous sales and timing.

Bipul Sinha: And then there's going to be some quarterly movements because it compares to previous years and timing. Thank you. Thank you, Todd. Next question. Your next question comes from Junaid Siddiqui of Truist. Your line is already open. Great. Great. Thank you for taking my question. With cyber insurance requirements tightening and ransomware costs increasing, are you seeing Rubrik's platform play a role in lowering those insurance premiums for customers? And do you see this convergence of identity and data security becoming a differentiator for cyber insurance and compliance frameworks? Thanks, Junaid. Absolutely. You need to have both identity resilience and cyber recovery to be able to drive complete cyber resilience. And for an insurance company to underwrite, there is an asymmetry of information. And for them to have confidence that the customers have the right technology, it is definitely attractive for them to actually recommend Rubrik.

And then there's going to be some quarterly movements because it compares to previous years and timing.

Todd Coupland: Thank you.

Thank you.

[Analyst]: Thank you, Todd. Next question.

Next question here.

[Company Representative]: Your next question comes from Junaid Siddiqui of Truist. Your line is already open.

Your next question comes from journeyed to.

<unk> of truest.

Line is already open right.

Junaid Siddiqui: Great. Great. Thank you for taking my question. With cyber insurance requirements tightening and ransomware costs increasing, are you seeing Rubrik's platform play a role in lowering those insurance premiums for customers? And do you see this convergence of identity and data security becoming a differentiator for cyber insurance and compliance frameworks?

Great. Thank you for taking my question.

Cyber insurance requirements tightening and ransomware costs, increasing are you seeing rubrics platform play a role in lowering those insurance premiums for customers.

And do you see this convergence of identity and data security, becoming a differentiator for cyber insurance and compliance frameworks.

Bipul Sinha: Thanks, Junaid. Absolutely. You need to have both identity resilience and cyber recovery to be able to drive complete cyber resilience. And for an insurance company to underwrite, there is an asymmetry of information. And for them to have confidence that the customers have the right technology, it is definitely attractive for them to actually recommend Rubrik.

Thanks generic absolutely.

You need to have both.

I didn't get the resilience and and cyber recovery to be able to drive complete.

Cyber resilience.

And <unk>.

And for.

For insurance company to underwrite the symmetry of the estimate we have information.

And for them to have confidence that the customers have the right technology.

Is definitely attractive for them to actually recommend rubric in fact, one of the insurance companies, which is our customer actually became a resell it.

Bipul Sinha: In fact, one of the insurance companies, which is our customer, actually became our reseller to their customer base based on that same thesis. We believe that we are still in the early innings of cyber resilience as the very large segment, and I would argue that the most important segment of cyber security. We believe that as this market continues to expand and as we continue to lead this market into the future around full cyber resilience across data and identity, we believe that there are lots of opportunities, including around insurance for us. Your next question comes from Keith Bachman of BMO. Your line is already open. Yes, ma'am. Thank you very much. I wanted to go back to the agent market. The identity market seems like a tremendous opportunity and a natural adjacency.

In fact, one of the insurance companies, which is our customer, actually became our reseller to their customer base based on that same thesis. We believe that we are still in the early innings of cyber resilience as the very large segment, and I would argue that the most important segment of cyber security. We believe that as this market continues to expand and as we continue to lead this market into the future around full cyber resilience across data and identity, we believe that there are lots of opportunities, including around insurance for us.

To their customer base based on that that same thesis.

We believe that we are still in the early innings of cyber resilience as the very large segment and I would.

The most important segment of cyber security.

And we believe that as.

As this market continues to expand and as we continue to lead this market into the future around full cyber resilient across data and identity and we believe that there are lots of opportunities including around incidents.

Your next question comes from Keith Bachman of BMO. Your line is already open.

Yeah.

Your next question comes from Keith.

Bachman of BMO. Your line is already open.

Keith Bachman: Yes, ma'am. Thank you very much. I wanted to go back to the agent market. The identity market seems like a tremendous opportunity and a natural adjacency.

Yes, ma'am. Thank you very much I wanted to go back to the agent market. The identity market seems like a tremendous opportunity in a natural adjacency I still struggle a little bit with the opportunities associated with the.

Bipul Sinha: I still struggle a little bit with the opportunities associated with the agent market. So I wanted to just ask it in maybe some different threads. Is the go-to-market going to be different for the identity? That is to say, do you anticipate it being a different buyer in the, excuse me, in the agent market? It would seem to me that it's a different buyer, but I just wanted to get your perspective. B, how do you think the competitive landscape is going to shape up? It's super early, and there's probably going to be more than one winner. Then finally, is there any thoughts about when you might emerge from beta to actually have production environments or GA into the market? Thanks very much.

I still struggle a little bit with the opportunities associated with the agent market. So I wanted to just ask it in maybe some different threads. Is the go-to-market going to be different for the identity? That is to say, do you anticipate it being a different buyer in the, excuse me, in the agent market? It would seem to me that it's a different buyer, but I just wanted to get your perspective. B, how do you think the competitive landscape is going to shape up? It's super early, and there's probably going to be more than one winner. Then finally, is there any thoughts about when you might emerge from beta to actually have production environments or GA into the market? Thanks very much.

The agent market and so I wanted to just ask it and maybe some different different threads is a is the is the go to market going to be different for the identity that is to say is there do you anticipate it being a different buyer.

It's in the excuse me in the agent market with it it would seem to me that.

Buyer, but I just wanted to get your perspective.

And B, how do you think the competitive landscape.

He's going to shape up it's super early and there's probably going to be more than one one winner and then finally.

Is there any thoughts about when you might emerge from beta.

To actually have a production environments or G.

G. A end of the market thanks very much.

Okay.

Bipul Sinha: So if you look at agents, they assume identity, they work on data, and they operate on many applications at a scale. And as I said before, the Rubrik platform is a combination of data, identity, and applications. So we are naturally positioned to take advantage of this agentic opportunity. We are not building a platform for people to build agents. There are many platforms for them to build agents. We are helping our customers operationalize agents and have confidence and governance controls to be able to deliver the agentic outcome because that's the biggest inhibitor in terms of AI going into production. And that's what we are focused on. In terms of the market, obviously, we are early. As I said, we are still in beta. We expect to go GA not too far in the future.

Bipul Sinha: So if you look at agents, they assume identity, they work on data, and they operate on many applications at a scale. And as I said before, the Rubrik platform is a combination of data, identity, and applications. So we are naturally positioned to take advantage of this agentic opportunity. We are not building a platform for people to build agents. There are many platforms for them to build agents. We are helping our customers operationalize agents and have confidence and governance controls to be able to deliver the agentic outcome because that's the biggest inhibitor in terms of AI going into production. And that's what we are focused on. In terms of the market, obviously, we are early. As I said, we are still in beta. We expect to go GA not too far in the future.

So if you look at agents.

They assume identity they walk on data and they operate on.

Many applications at the scale and as I said before the <unk> platform is the combination of data identity and applications. So.

So we are naturally positioned to take advantage of this agent pick opportunity. We are not building a platform for people to build agents. There are many platform for them to build agent.

We're helping our customers operationalize agents and have confidence and governance controls to be able to to deliver the agent <unk> outcome. Because that's the biggest inhibitor in terms of EA going into production and that's what we're focused on in terms of the market. Obviously, we are early.

That said we are still in beta.

We would expect to good year not too far in future. We'll continue to learn from this market continue to enable our customers on this journey. So far it feels like operations team, which is CTO and CIO organization will be responsible for a gen peak work transformation across line of businesses.

Bipul Sinha: We'll continue to learn from this market, continue to enable our customers on this journey. So far, it feels like the operations team, which is the CTO, CIO organization, would be responsible for agentic work transformation across line of businesses. So there is a convergence in the buying persona. But again, it's very early. We'll learn in the market, but we believe that we have a very strong vision for this market. And again, as this market evolves, we want to really take our customers on this agentic journey. Many thanks, Bipul. Thank you, Keith. Next question. Your next question comes from Shrenik Kothari from Baird. Your line is already open. Yeah, thanks for taking my question and many congrats on the great execution. Bipul, of course, you mentioned we're launching the identity resilience this quarter and already noted pretty strong early adoption.

We'll continue to learn from this market, continue to enable our customers on this journey. So far, it feels like the operations team, which is the CTO, CIO organization, would be responsible for agentic work transformation across line of businesses. So there is a convergence in the buying persona. But again, it's very early. We'll learn in the market, but we believe that we have a very strong vision for this market. And again, as this market evolves, we want to really take our customers on this agentic journey.

So there is a convergence in the buying persona, but again, it's very early we learned in the market, but we believe that we have a very strong vision for this market and and again as this market evolves, we want to really take our customers on decision Tech journey.

Keith Bachman: Many thanks, Bipul.

Many thanks people.

[Analyst]: Thank you, Keith. Next question.

Thank you Keith.

[Company Representative]: Your next question comes from Shrenik Kothari from Baird. Your line is already open.

My question.

Your next your next question comes from shrank Caffari from Baird.

Your line is already open.

Shrenik Kothari: Yeah, thanks for taking my question and many congrats on the great execution. Bipul, of course, you mentioned we're launching the identity resilience this quarter and already noted pretty strong early adoption.

Yes, Thanks for taking my question and Ronnie Congrats on great execution portfolio.

Of course, you match, our launching the resilience this quarter and already noted a pretty strong early adoption.

Bipul Sinha: Can you speak to the uplift versus identity recovery? And just on that note, Kiran highlighted that security represents over 40% now and was a major contributor to sustaining NRR by 120%. Just with these modules that you're adding, resilience and agent cloud adding more breadth, just how should we think about the durability of that NRR? Thanks. Kiran, do you want to take the question? Yeah. So Shrenik, this is Kiran. I'll just give you some thoughts on how to think about the NRR. So obviously, we have had and continue to have strong NRR, 120% plus, which we see as best in class. Our business lends itself to strong NRR. We have a very strong gross retention, and this has been the case historically. On top of that, we have multiple expansion vectors through different products. That helps drive the strong NRR.

Can you speak to the uplift versus identity recovery? And just on that note, Kiran highlighted that security represents over 40% now and was a major contributor to sustaining NRR by 120%. Just with these modules that you're adding, resilience and agent cloud adding more breadth, just how should we think about the durability of that NRR? Thanks.

Ken can you speak to the uplift worse as R&D recovery in and just on that note.

Kieran highlighted that security represents over 40% now and was a major contributor to sustaining NRO about one person just with these modules that you're adding resilience and agent cloud, adding more breadth like just how should we think about the durability of that NR.

Bipul Sinha: Kiran, do you want to take the question?

Karen do you want to take the question, yes. So.

Kiran Choudary: Yeah. So Shrenik, this is Kiran. I'll just give you some thoughts on how to think about the NRR. So obviously, we have had and continue to have strong NRR, 120%+, which we see as best in class. Our business lends itself to strong NRR. We have a very strong gross retention, and this has been the case historically. On top of that, we have multiple expansion vectors through different products. That helps drive the strong NRR.

This is Karen I'll, just give you some thoughts on how to think about the.

And so obviously, we have had and continue to have strong and IRR, 120%, plus which we see as a best in class.

And our business lends itself to strong.

And we have a very strong gross retention.

And this has been the case historically and on top of that we have multiple expansion vectors through different products.

And that helps drive the stronger dollar, but at the same time.

Bipul Sinha: But at the same time, we are scaling as a business with the strong growth rates, and $1.35 billion in subscription NRR this quarter. So naturally, NRR tends to moderate over time at scale, but it'll be a strong NRR just given the drivers of the business. And then on the question you have on identity resilience, I would say it's early. We have just launched it. Obviously, that has got more features packed into it, so there will be a price uplift, but I think we need more data points to give you a sense for the amount of uplift. Great. Very helpful. Thanks a lot. Congrats again. Thank you. There are no further questions at this time. I would hand over the call to Bipul Sinha for closing remarks. Please go ahead. In closing, I would say thank you, everyone, for continuing to be on Rubrik's journey.

But at the same time, we are scaling as a business with the strong growth rates, and $1.35 billion in subscription NRR this quarter. So naturally, NRR tends to moderate over time at scale, but it'll be a strong NRR just given the drivers of the business. And then on the question you have on identity resilience, I would say it's early. We have just launched it. Obviously, that has got more features packed into it, so there will be a price uplift, but I think we need more data points to give you a sense for the amount of uplift.

We are scaling is a business with a strong growth rates and you know what 135 billion.

Subscription now this quarter so naturally.

And our tends to.

A moderate over time at scale, but it'll it'll be a stronger just given the drivers of the business and then on the question you highlighted the resilience I would say it's early.

We just launched it.

Obviously that has got more features backed into it. So there will be a price uplift, but I think we need more data points to give you a sense for the amount of uplift.

Shrenik Kothari: Great. Very helpful. Thanks a lot. Congrats again.

Great very helpful. Thanks, a lot congrats again.

Kiran Choudary: Thank you.

Thank you.

[Company Representative]: There are no further questions at this time. I would hand over the call to Bipul Sinha for closing remarks. Please go ahead.

So there are no further questions at this time.

I would hand over the call to <unk> for closing remarks. Please go ahead.

Bipul Sinha: In closing, I would say thank you, everyone, for continuing to be on Rubrik's journey.

In closing I would say thank you everyone.

Continuing to be on Rubig journey.

Bipul Sinha: As I've mentioned before, our ambition is to build the next 100-year-plus company. That 100-year-plus company will be built based on all participants in the ecosystem to our customers, to our partners, all the Rubrikans, and our ability to continue to lead the market, imagine new products, validate that vision, and produce the product. I'm very excited that Rubrik is able to organically create products such as identity resilience and identity recovery and create an independent product line and business. We want to continue to be on this journey with you. Thank you so much for your support. It's still early days for Rubrik. Look forward to talking to you soon. Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation, and you may now disconnect.

As I've mentioned before, our ambition is to build the next 100-year+ company. That 100-year+ company will be built based on all participants in the ecosystem to our customers, to our partners, all the Rubrikans, and our ability to continue to lead the market, imagine new products, validate that vision, and produce the product. I'm very excited that Rubrik is able to organically create products such as identity resilience and identity recovery and create an independent product line and business. We want to continue to be on this journey with you. Thank you so much for your support. It's still early days for Rubrik. Look forward to talking to you soon.

As I've mentioned before.

Our ambition is to build the next 100 year plus company.

And that 100 year plus company will be built based on all participants in the ecosystem to our customers to our partners all the lubricants.

And our ability to.

<unk> to lead the market imagine new product validate that vision and produce the product I'm very excited that rubric is able to organically create products such as identity resilience and identity recovery.

And create an independent.

Correct line in business.

We want to continue to beyond the journey with you. Thank you so much for your support it's still early days for rubric look forward to talking to you soon.

Kiran Choudary: Thank you.

Thank you.

[Company Representative]: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation, and you may now disconnect.

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation and you may now disconnect.