Stock rips 26% higher after beat and guidance boost

rubric Shares rose 25% on Friday after the data management company reported third-quarter numbers and strengthened its guidance.

The stock, which launched in April 2024, is on track for its second-best day on record.

Revenue rose 48% year-over-year to $350 million, according to LSEG, beating the average analyst estimate of $320 million. in it announcement Late Thursday, Rubrik reported adjusted earnings of 10 cents per share, while analysts expected a loss of 17 cents per share.

The company raised its revenue forecast for the fiscal year to a range of $1.28 billion to $1.282 billion, from the previous high of $1.237 billion.

CEO Bipul Sinha said Thursday on CNBC’s “Closing Bell: Overtime” that the company’s strength in cyber resilience and its recent push to protect artificial intelligence agents is fueling its rapid growth.

“The biggest concern businesses have when hiring agents is that they don’t know what’s going on,” Sinha said. “What are these agents doing? Are they hallucinating? Do they have guardrails? And if they make mistakes, can we undo those mistakes?”

Rubrik reported a net loss of $63.83 million, a loss of 32 cents per share, narrowing significantly from the previous year’s net loss of $130.91 million, a loss of 71 cents per share.

On Thursday’s earnings call with analysts, Sinha said Rubrik was winning business by replacing old vendors.

He said one of Asia’s largest banks chose Rubrik over a long-term vendor like a Fortune 250 professional services firm, and that pressure was driven by the growth in artificial intelligence and the evolving threat of cyberattacks.

“With AI, cyber attacks have become more common because attackers are using AI,” Sinha told CNBC. “So we believe we are in the early days of a very, very large market and will continue to grow rapidly for the foreseeable future.”