Forget Crowdstrike, Check THESE Guys Out

You’ve heard all about Crowdstrike, but the recent IPO Rubrik (RBK) deserves your attention. On Tuesday, cybersecurity firm Rubrik Inc.'s shares rose as much as 10% in after-hours trading, after its first earnings report as a public company beat Wall Street expectations. Rubrik reported fiscal Q1 revenue of $187.3 million, above analyst estimates of $171.5 million and up 38% year-over-year. Its annual recurring subscription revenue also topped forecasts.

For the full fiscal year, Rubrik projected revenue of $810-$824 million and subscription annual recurring revenue of up to $997 million, both exceeding analyst estimates. The strong results came despite a volatile atmosphere for cybersecurity firms, with high-profile cyberattacks driving demand but enterprise customers also tightening spending.

Who is Rubrik?

Rubrik, which protects data across cloud and SaaS operations, became just the second major enterprise software IPO in two years when it went public in April amid revived investor enthusiasm. Microsoft previously invested in Rubrik at a $4 billion valuation in 2021, with Rubrik committing $220 million to use Microsoft's Azure cloud over 10 years. Rubrik was founded in 2013, released its debut product in 2016, and now has over 6,100 customers including major banks, retailers, government agencies, and universities. Unlike its rivals, Rubrik offers businesses a comprehensive cyber recovery solution to protect against cyber threats. This includes data resilience, observability, and remediation, with continual monitoring of risks.

What The Analysts Are Saying

Although the stock is trading lower as of Thursday, down to $31.18 off its five-day high of $35.76, analysts are upbeat, with a strong buy rating and a price target of $46.08. Analysts at Wells Fargo said they expected Rubrik to "deliver one of the few 'beat and raise' performances" in Q1 earnings compared to struggling rivals. They also point out that recent major cyberattacks like those on UnitedHealth and Snowflake customers highlight the rising need for Rubrik's cyber resilience services.

Neither Julie Stoller nor Stocks.News have positions in these companies.