Fubotv earnings beat by $0.10, revenue topped estimates
On Tuesday, FBN Securities analysts raised the price target for Rubrik Inc (NYSE:RBRK) stock to $100 from $80, maintaining an Outperform rating. The decision follows Rubrik’s robust first-quarter financial results, which saw a 49% year-over-year increase in revenue, surpassing consensus estimates by 7%. According to InvestingPro data, analyst targets for Rubrik range from $78.45 to $125, with the stock currently trading above its Fair Value, suggesting potential overvaluation.
Rubrik also reported a 53% year-over-year growth in billings, exceeding expectations by 22%. The company’s remaining performance obligations (RPO) rose by 35% year-over-year, while the current RPO (cRPO) is estimated to have grown by 49% year-over-year. The subscription annual recurring revenue (ARR) reached $1.181 billion, marking a 38% increase year-over-year and 2% above consensus. The company maintains impressive gross profit margins of 76.45%, as revealed in InvestingPro’s detailed financial analysis.
The next-generation subscription contribution margin improved to 8.0%, up 18.6 percentage points year-over-year, and exceeded the high-end of guidance by 3.0 percentage points. The next-generation operating margin also saw a significant improvement, increasing by 43.4 percentage points year-over-year to -6.6%.
Rubrik’s strategy to expand its customer base proved effective, as the number of customers with $100,000 or more in subscription ARR grew by 28% year-over-year, reaching 2,381. The company’s average subscription net revenue retention rate remained above 120%. Revenue in the Americas rose by 51% year-over-year to $202.8 million, while international revenue increased by 43% year-over-year to $75.7 million. With a market capitalization of $18.02 billion and strong YTD returns of 42.52%, Rubrik demonstrates robust growth momentum. For deeper insights into Rubrik’s financial health and growth prospects, including 12 additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Rubrik Inc. has announced plans to offer $1 billion in Convertible Senior Notes due 2030 in a private placement to qualified institutional buyers. The company intends to use the proceeds to finance capped call transactions, repay existing loans, and for general corporate purposes. Additionally, Rubrik’s recent financial performance has attracted attention, with BMO Capital raising its stock price target to $110, citing strong quarterly results and an increase in annual recurring revenue (ARR). Similarly, Goldman Sachs increased its price target to $117, noting a 7% revenue increase and significant growth in Cloud ARR. Truist Securities also raised its price target to $110, highlighting Rubrik’s robust first-quarter results and its unique market position in data security. These developments reflect confidence in Rubrik’s strategic direction and growth potential in the software industry.
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