Operating Efficiency Sustainability
Q: How sustainable are the operating efficiency improvements?
A: Kiran stated that the company is pleased with the progress in subscription ARR contribution margin and cash margins, and expects many drivers of efficiency to continue, including higher productivity, targeted marketing, partner leverage, and growth in renewals. However, improvements will moderate over time. "

TAM Expansion into Cybersecurity
Q: Is there evidence of expanding into broader cybersecurity budgets?
A: Bipul explained that Rubrik transformed the backup and recovery market into a cyber resilience platform, expanding its TAM. Half of new customers adopt the Enterprise Edition, and about one-third of NRR comes from data security product attach, indicating successful participation in cybersecurity budgets. "

Contribution Margin and Investments
Q: How will contribution margin improvements affect future investments?
A: Kiran stated they expect subscription ARR contribution margin to be breakeven or better next fiscal year, aiming for profitable growth. Operating margin will follow after subscription margin, but with some lag due to revenue suppression from cloud transformation. "

Market Share Gains
Q: What can you share about win rates and market share gains?
A: Bipul said they continue to win a vast majority of deals against new-gen and legacy vendors, due to their unique Zero Trust platform that combines DSPM and cyber recovery, reaping the rewards of a unique architecture built from day one. "

Enterprise Edition Adoption
Q: How is the adoption rate of Enterprise Edition changing?
A: Bipul reported continued strong adoption of Enterprise Edition, with about half of new customers adopting it initially. Nearly one-third of NRR comes from data security products, including Enterprise Edition and DSPM offerings. "

Annapurna Vision and Monetization
Q: What's the vision and monetization plan for Annapurna?
A: Bipul described Annapurna as a multiyear strategy to enable secure gen AI applications using Rubrik's data platform. While starting with AWS Bedrock, it's designed to work across platforms. Monetization plans are still being figured out through market experimentation over the next several years. "

Demand Drivers and Gen AI
Q: Is demand for DSPM and cyber recovery driven by gen AI rollouts?
A: Bipul acknowledged that gen AI is a driver, forcing focus on data integrity and risk. However, other factors like digital transformation, cloud adoption, and SaaS applications are also contributing to the secular tailwind in the market. "

DSPM Impact on Pipeline
Q: How is DSPM adoption impacting pipeline and deal cycles?
A: Bipul noted strong traction with DSPM, with the number of customers doubling quarter-over-quarter in Q3. Kiran added that DSPM is still a smaller part of the business and not influencing overall sales cycles, which have remained stable. "

Cloud Backup vs. Native Solutions
Q: Why do customers choose Rubrik over native cloud backups?
A: Bipul explained that customers seek a single policy engine and security control across all data estates, including multiple clouds and SaaS applications. Rubrik's comprehensive solution offers cyber recovery across all environments, which native cloud backups lack. "

Go-to-Market Partnerships
Q: Is there increasing engagement with VARs and GSIs?
A: Bipul confirmed greater engagement, as customers demand cyber resilience solutions. VARs and GSIs are partnering more with Rubrik to provide strategic risk mitigation, expanding their scope from infrastructure to cybersecurity. "

Free Cash Flow Headwinds
Q: What are the headwinds to free cash flow?
A: Kiran clarified that modest headwinds are due to shorter contract and invoicing cycles for cloud and SaaS products, not consumption-based pricing. This results from customers aligning data security purchases with their SaaS procurement practices. "