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Rubrik Reports First Quarter Fiscal Year 2025 Financial Results

Business Wire 11-Jun-2024 4:05 PM

  • First quarter Subscription ARR of $856.1 million, up 46% year over year
  • Revenue of $187.3 million, up 38% year over year
  • 1,859 Customers with $100K or more in Subscription ARR, up 41% year over year

Rubrik, Inc. (NYSE:RBRK), the Zero Trust Data Security™ company, today announced financial results for the first quarter fiscal year 2025, ended April 30, 2024.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240611082171/en/

Q1 2025 Rubrik Infographic (Graphic: Rubrik)

Q1 2025 Rubrik Infographic (Graphic: Rubrik)

"Rubrik is a leader in one of the fastest growing new segments in the cybersecurity market, data security, with a total addressable market of about $53 billion by 2027*. The explosion of data especially with AI is creating a massive market opportunity for Rubrik. The value we bring to our customers has resulted in subscription annual recurring revenue up 46% year over year in Q1 to $856 million. While we are excited and proud of all the team has done to date, we are in the very early innings of data security and look forward to continuing to build an enduring company," said Bipul Sinha, Rubrik's Chief Executive Officer, Chairman, and Co-Founder.

Commenting on the Company's financial results, Kiran Choudary, Rubrik's Chief Financial Officer, added, "We are pleased by the strong start to the year in Q1 with strength in large transactions driving net new Subscription ARR of $72 million, up 32% year over year and Subscription ARR Contribution Margin up over 2,100 basis points year over year. We are confident in our ability to deliver strong growth in Subscription ARR and continued operating leverage towards our long-term financial model."

First Quarter Fiscal 2025 Financial Highlights

  • Subscription Annual Recurring Revenue (ARR) up 46% year over year, grew to $856.1 million as of April 30, 2024.
  • Revenue: Subscription revenue was $172.2 million, a 59% increase, compared to $108.4 million in the first quarter of fiscal 2024. Total revenue was $187.3 million, a 38% increase, compared to $135.7 million in the first quarter of fiscal 2024.
  • Gross Margin: GAAP gross margin was 48.8%, compared to 73.6% in the first quarter of fiscal 2024. This includes $48.9 million in stock-based compensation expense, compared to $0.1 million in the year ago period, due to the vesting of certain equity awards in conjunction with the initial public offering. Non-GAAP gross margin was 75.4%, compared to 73.6% in the first quarter of fiscal 2024.
  • Subscription ARR Contribution Margin: Subscription ARR Contribution Margin was (11)% compared to (32)% in the prior year period, reflecting the improvement in operating leverage in the business. Subscription ARR Contribution Margin was (8)% when adjusting for $22.8 million in employer payroll taxes due to the vesting of certain equity awards in conjunction with the initial public offering.
  • Net Loss per Share: GAAP net loss per share was $(11.48), compared to $(1.49) in the first quarter of fiscal 2024. GAAP net loss includes $630.3 million in stock-based compensation expense, compared to $0.5 million in the year ago period, due to the vesting of certain equity awards in conjunction with the initial public offering. Non-GAAP net loss per share was $(1.58), compared to $(1.48) in the first quarter of fiscal 2024.
  • Cash Flow from Operations: Cash flow from operations was $(31.4) million, compared to $(17.5) million in the first quarter of fiscal 2024. Free cash flow was $(37.1) million, compared to $(23.2) million in the first quarter of fiscal 2024. Excluding the $20.6 million for employer payroll taxes due to the vesting of certain equity awards in conjunction with the initial public offering, free cash flow would have been $(16.5) million.
  • Cash, Cash Equivalents, and Short-Term Investments: Cash, cash equivalents and short-term investments were $606.3 million as of April 30, 2024.

Recent Business Highlights

  • As of April 30, 2024, Rubrik had 1,859 customers with Subscription ARR of $100,000 or more, up 41% year over year.
  • Announced the pricing and closing of an initial public offering of 23,500,000 shares of Rubrik Class A common stock at a price to the public of $32.00 per share. Net proceeds to Rubrik from the offering were $710.3 million after deducting underwriting discounts and commissions. The shares began trading on the New York Stock Exchange on April 25, 2024, under the symbol "RBRK". In May 2024, the underwriters exercised their option to purchase an additional 3,472,252 shares of Class A common stock at the initial public offering price of $32.00 per share. Net proceeds were approximately $104.9 million after deducting underwriters' discounts and commissions.
  • Announced the general availability of DSPM Everywhere, which we believe is the industry's first and only complete cyber resilience offering. DSPM Everywhere allows organizations to secure mission-critical data for comprehensive protection, recovery, and resilience against cyberattacks, whether in a cloud, SaaS, or on-premises environment.
  • Announced a strategic partnership with CrowdStrike (NASDAQ:CRWD) to accelerate data security transformation and stop breaches of critical information. By unifying rich, data-centric attack context from the Rubrik Security Cloud with the industry-leading AI-native CrowdStrike Falcon® XDR platform, organizations can rapidly detect, investigate, and stop attacks targeting sensitive data.
  • Announced a global strategic alliance and new services with Kyndryl (NYSE:KD), the world's largest IT infrastructure services provider. As part of the strategic alliance, Rubrik collaborated with Kyndryl to co-develop and launch Kyndryl Incident Recovery with Rubrik. This fully managed ‘as-a-service' solution provides customers with data protection and cyber incident recovery, backup, and disaster recovery for cloud and on-premises workloads.
  • Won two Global InfoSec awards for "Pioneering Data Security Posture Management (DSPM)" and "Pioneering Cyber Resilience", in recognition of Rubrik's leadership in advancing the field of data protection and cybersecurity in today's rapidly evolving digital landscape.

Second Quarter and Fiscal Year 2025 Outlook

Rubrik is providing the following guidance for the second quarter of fiscal year 2025 and the full fiscal year 2025:

  • Second Quarter Fiscal 2025 Outlook:
    • Revenue of $195 million to $197 million.
    • Non-GAAP Subscription ARR contribution margin of approximately (13.5)% to (12.5)%.
    • Non-GAAP EPS of $(0.50) to $(0.48).
    • Weighted-average shares outstanding of approximately 179 million.
  • Full Year 2025 Outlook:
    • Subscription ARR between $983 million and $997 million.
    • Revenue of $810 million to $824 million.
    • Non-GAAP Subscription ARR contribution margin of approximately (12.5)% to (11.5)%.
    • Non-GAAP EPS of $(2.35) to $(2.25).
    • Weighted-average shares outstanding of approximately 154 million.
    • Free cash flow of $(115) million to $(95) million, including $23 million of one-time payroll taxes related to the public offering.

Additional information on Rubrik's reported results, including a reconciliation of the non-GAAP results to their most comparable GAAP measures, is included in the financial tables below. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Rubrik's results computed in accordance with GAAP. For example, stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of Rubrik's Class A common stock, and Rubrik's future hiring and retention needs, all of which are difficult to predict and subject to constant change.

Conference Call Information

Rubrik will host a conference call to discuss results for the first quarter of fiscal year 2025, as well as its financial outlook for the fiscal second quarter and fiscal year 2025 today at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. Open to the public, analysts and investors may access the webcast, results press release, and investor presentation on Rubrik's investor relations website at https://ir.rubrik.com. A replay of the webcast will also be accessible from Rubrik's investor relations website a few hours after the conclusion of the live event.

Rubrik uses its investor relations website and may use certain social media accounts including X (formerly Twitter) (@rubrikInc and @bipulsinha) and LinkedIn (www.linkedin.com/company/rubrik-inc and www.linkedin.com/in/bipulsinha) as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Forward-Looking Statements

This press release and the related conference call contain express and implied "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Rubrik's financial outlook for the second quarter of fiscal year 2025 and full fiscal year 2025, Rubrik's market position, market opportunities, and growth strategy, product initiatives, go-to-market motions and market trends. In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "estimate," "expect," "intend," "may," "might," "plan," "project," "will," "would," "should," "could," "can," "predict," "potential," "target," "explore," "continue," "outlook," "guidance," or the negative of these terms, where applicable, and similar expressions intended to identify forward-looking statements. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond Rubrik's control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the statements. Risks include but are not limited to Rubrik's limited operating history, the growth rate of the market in which Rubrik competes, Rubrik's ability to effectively manage and sustain its growth, Rubrik's ability to introduce new products on top of its platform, Rubrik's ability to compete with existing competitors and new market entrants, Rubrik's ability to expand internationally and its ability to utilize AI successfully in its current and future products. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption "Risk Factors" and elsewhere in our most recent filings with the Securities and Exchange Commission, including Rubrik's final prospectus filed with the SEC pursuant to Rule 424(b), dated April 24, 2024. Forward-looking statements speak only as of the date the statements are made and are based on information available to Rubrik at the time those statements are made and/or management's good faith belief as of that time with respect to future events. Rubrik assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

Non-GAAP Financial Measures

Rubrik has provided in this press release financial information that has not been prepared in accordance with GAAP. Rubrik uses these non-GAAP financial measures internally in analyzing its financial results and believes that use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing Rubrik's financial results with other companies in its industry, many of which present similar non-GAAP financial measures.

Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with Rubrik's condensed consolidated financial statements prepared in accordance with GAAP. A reconciliation of Rubrik's historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.

Free Cash Flow. Rubrik defines free cash flow as net cash provided by (used in) operating activities less cash used for purchases of property and equipment and capitalized internal-use software. Rubrik believes free cash flow is a helpful indicator of liquidity that provides information to management and investors about the amount of cash generated or used by Rubrik's operations that, after the investments in property and equipment and capitalized internal-use software, can be used for strategic initiatives, including investing in Rubrik's business and strengthening its financial position. One limitation of free cash flow is that it does not reflect Rubrik's future contractual commitments. Additionally, free cash flow is not a substitute for cash used in operating activities and the utility of free cash flow as a measure of Rubrik's liquidity is further limited as it does not represent the total increase or decrease in Rubrik's cash balance for a given period.

Non-GAAP Subscription Cost of Revenue. Rubrik defines non-GAAP subscription cost of revenue as subscription cost of revenue, adjusted for amortization of acquired intangibles, stock-based compensation expense, and stock-based compensation from amortization of capitalized internal-use software.

Non-GAAP Operating Expenses (Research and Development, Sales and Marketing, General and Administrative). Rubrik defines non-GAAP operating expenses as operating expenses (research and development, sales and marketing, general and administrative), adjusted for, as applicable, stock-based compensation expense.

Subscription Annual Recurring Revenue ("ARR") Contribution Margin. Rubrik defines Subscription ARR Contribution Margin as Subscription ARR contribution divided by Subscription ARR at the end of the period. Rubrik defines Subscription ARR Contribution as Subscription ARR at the end of the period less: (i) non-GAAP subscription cost of revenue and (ii) non-GAAP operating expenses for the prior 12-month period ending on that date. Rubrik believes that Subscription ARR Contribution Margin is a helpful indicator of operating leverage. One limitation of Subscription ARR Contribution Margin is that the factors that impact Subscription ARR will vary from those that impact subscription revenue and, as such, may not provide an accurate indication of Rubrik's actual or future GAAP results. Additionally, the historical expenses in this calculation may not accurately reflect the costs associated with future commitments.

Key Business Metrics

Subscription ARR. Rubrik calculates Subscription ARR as the annualized value of our active subscription contracts as of the measurement date, assuming any contract that expires during the next 12 months is renewed on existing terms. Subscription contracts include cloud-based contracts for Rubrik's subscription offerings and products sold on top of its Rubrik Security Cloud ("RSC") platform, prior sales of CDM sold as a subscription term-based license with associated support, and standalone sales of Rubrik's SaaS subscription products like Anomaly Detection (previously known as Ransomware Monitoring & Investigation) and Sensitive Data Monitoring (previously known as Sensitive Data Monitoring & Management).

Cloud ARR. Rubrik calculates Cloud ARR as the annualized value of its active cloud-based subscription contracts as of the measurement date, based on Rubrik's customers' total contract value and, assuming any contract that expires during the next 12 months is renewed on existing terms. Rubrik's cloud-based subscription contracts include RSC and RSC-Government (excluding RSC-Private) and SaaS subscription products like Ransomware Monitoring & Investigation (now known as Anomaly Detection) and Sensitive Data Monitoring & Management (now known as Sensitive Data Monitoring).

Average Subscription Dollar-Based Net Retention Rate. Rubrik calculates Average Subscription Dollar-Based Net Retention Rate by first identifying subscription customers ("Prior Period Subscription Customers") which were subscription customers at the end of a particular quarter (the "Prior Period"). Rubrik then calculates the Subscription ARR from these Prior Period Subscription Customers at the end of the same quarter of the subsequent year (the "Current Period"). This calculation captures upsells, contraction, and attrition since the Prior Period. Rubrik then divides total Current Period Subscription ARR by the total Prior Period Subscription ARR for Prior Period Subscription Customers. Rubrik's Average Subscription Dollar-Based Net Retention Rate in a particular quarter is obtained by averaging the result from that particular quarter with the corresponding results from each of the prior three quarters.

Customers with $100K or More in Subscription ARR. Customers with $100K or more in Subscription ARR represent the number of customers that contributed $100,000 or more in Subscription ARR as of period end.

*Total addressable market number calculations of $53 billion by 2027 were performed by Rubrik, Inc. based on Gartner research. Gartner is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. Calculations were based on Gartner research documents including:

  1. Gartner, Inc., Forecast: Information Security and Risk Management, Worldwide, 2021-2027, 4Q23 Update, December 2023; Gartner, Inc., Forecast Analysis: Cloud Security Posture Management, Worldwide, July 2023. Includes $6.6 billion and $9.8 billion in Application Security, $6.9 billion and $12.8 billion in Cloud Security, $1.7 billion and $2.7 billion in Data Privacy, $4.2 billion and $5.9 billion in Data Security, and $2.4 billion and $2.9 billion in Privileged Access Management by the end of calendar years 2024 and 2027, respectively.
  2. Gartner, Inc., Forecast Analysis: Cloud Security Posture Management, Worldwide, July 2023. Calculations performed by Rubrik, Inc. Includes $1.8 billion and $3.3 billion in Cloud Security Posture Management by the end of calendar years 2024 and 2027, respectively.
  3. Gartner, Inc., Forecast: Enterprise Infrastructure Software, Worldwide, 2021-2027, 4Q23 Update, December 2023. Calculations performed by Rubrik, Inc. Includes $11.1 billion and $13.3 billion in Backup and Recovery Software and $1.9 billion and $2.1 billion in Archive Software by the end of calendar years 2024 and 2027, respectively.

About Rubrik

Rubrik (NYSE:RBRK) is on a mission to secure the world's data. With Zero Trust Data Security™, we help organizations achieve business resilience against cyberattacks, malicious insiders, and operational disruptions. Rubrik Security Cloud, powered by machine learning, secures data across enterprise, cloud, and SaaS applications. We help organizations uphold data integrity, deliver data availability that withstands adverse conditions, continuously monitor data risks and threats, and restore businesses with their data when infrastructure is attacked.

Rubrik, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

 

 

Three Months Ended April 30,

 

2024

 

2023

Revenue

 

 

 

Subscription

$

172,195

 

 

$

108,398

 

Maintenance

 

5,667

 

 

 

12,288

 

Other

 

9,453

 

 

 

15,054

 

Total revenue

 

187,315

 

 

 

135,740

 

 

 

 

 

Cost of revenue

 

 

 

Subscription

 

73,725

 

 

 

21,637

 

Maintenance

 

3,609

 

 

 

2,271

 

Other

 

18,645

 

 

 

11,983

 

Total cost of revenue

 

95,979

 

 

 

35,891

 

 

 

 

 

Gross profit

 

91,336

 

 

 

99,849

 

Operating expenses

 

 

 

Research and development

 

285,379

 

 

 

46,266

 

Sales and marketing

 

379,329

 

 

 

115,362

 

General and administrative

 

151,465

 

 

 

22,817

 

Total operating expenses

 

816,173

 

 

 

184,445

 

 

 

 

 

Loss from operations

 

(724,837

)

 

 

(84,596

)

Interest income

 

2,942

 

 

 

2,617

 

Interest expense

 

(10,624

)

 

 

(5,532

)

Other income (expense), net

 

(623

)

 

 

(554

)

Loss before income taxes

 

(733,142

)

 

 

(88,065

)

Income tax expense (benefit)

 

(1,051

)

 

 

1,208

 

Net loss

$

(732,091

)

 

$

(89,273

)

Net loss per share attributable to common shareholders, basic and diluted

$

(11.48

)

 

$

(1.49

)

Weighted-average shares used in computing net loss per share attributable to common shareholders, basic and diluted

 

63,794

 

 

 

59,940

 

Rubrik, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

 

 

April 30,

 

January 31,

 

2024

 

2024

Assets

Current assets

 

 

 

Cash and cash equivalents

$

502,614

 

 

$

130,031

 

Short-term investments

 

103,706

 

 

 

149,220

 

Accounts receivable, net of allowances

 

97,369

 

 

 

133,544

 

Deferred commissions

 

74,529

 

 

 

72,057

 

Prepaid expenses and other current assets

 

74,724

 

 

 

63,861

 

Total current assets

 

852,942

 

 

 

548,713

 

Property and equipment, net

 

45,983

 

 

 

47,873

 

Deferred commissions, noncurrent

 

114,166

 

 

 

113,814

 

Goodwill

 

100,343

 

 

 

100,343

 

Other assets, noncurrent

 

52,938

 

 

 

62,867

 

Total assets

$

1,166,372

 

 

$

873,610

 

Liabilities, redeemable convertible preferred stock and stockholders' deficit

Current liabilities

 

 

 

Accounts payable

$

8,552

 

 

$

6,867

 

Accrued expenses and other current liabilities

 

160,334

 

 

 

122,934

 

Deferred revenue

 

569,159

 

 

 

526,480

 

Total current liabilities

 

738,045

 

 

 

656,281

 

Deferred revenue, noncurrent

 

590,595

 

 

 

579,781

 

Other liabilities, noncurrent

 

55,226

 

 

 

55,050

 

Debt, noncurrent

 

297,104

 

 

 

287,042

 

Total liabilities

 

1,680,970

 

 

 

1,578,154

 

 

 

 

 

Redeemable convertible preferred stock

 

 

 

 

714,713

 

Stockholders' deficit

 

 

 

Preferred stock

 

 

 

 

 

Common stock

 

 

 

 

1

 

Convertible founders stock

 

 

 

 

 

Class A common stock

 

1

 

 

 

 

Class B common stock

 

3

 

 

 

 

Additional paid-in capital

 

1,902,906

 

 

 

265,494

 

Accumulated other comprehensive loss

 

(2,904

)

 

 

(2,239

)

Accumulated deficit

 

(2,414,604

)

 

 

(1,682,513

)

Total stockholders' deficit

 

(514,598

)

 

 

(1,419,257

)

Total liabilities, redeemable convertible preferred stock and stockholders' deficit

$

1,166,372

 

 

$

873,610

 

Rubrik, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

Three Months Ended April 30,

 

2024

 

2023

Cash flows from operating activities:

 

 

 

Net loss

$

(732,091

)

 

$

(89,273

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

Depreciation and amortization

 

7,190

 

 

 

5,572

 

Stock-based compensation

 

630,330

 

 

 

428

 

Amortization of deferred commissions

 

20,377

 

 

 

16,445

 

Non-cash interest

 

9,700

 

 

 

 

Deferred income taxes

 

(990

)

 

 

387

 

Other

 

863

 

 

 

35

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

36,175

 

 

 

22,161

 

Deferred commissions

 

(23,201

)

 

 

(19,917

)

Prepaid expenses and other assets

 

(13,920

)

 

 

12,477

 

Accounts payable

 

2,748

 

 

 

441

 

Accrued expenses and other liabilities

 

(22,055

)

 

 

(38,168

)

Deferred revenue

 

53,493

 

 

 

71,955

 

Net cash used in operating activities

 

(31,381

)

 

 

(17,457

)

Cash flows from investing activities:

 

 

 

Purchases of property and equipment

 

(3,639

)

 

 

(3,373

)

Capitalized internal-use software

 

(2,103

)

 

 

(2,416

)

Purchases of investments

 

(42,688

)

 

 

(72,204

)

Sale of investments

 

27,978

 

 

 

7,503

 

Maturities of investments

 

61,189

 

 

 

75,536

 

Net cash provided by investing activities

 

40,737

 

 

 

5,046

 

Cash flows from financing activities:

 

 

 

Proceeds from initial public offering, net of underwriting discounts and commissions

 

710,264

 

 

 

 

Taxes paid related to net share settlement of equity awards

 

(350,444

)

 

 

 

Proceeds from exercise of stock options

 

3,618

 

 

 

974

 

Payments for deferred offering costs, net

 

(775

)

 

 

(415

)

Payments for debt discount costs

 

(475

)

 

 

 

Payments for debt issuance costs

 

(6

)

 

 

 

Net cash provided by financing activities

 

362,182

 

 

 

559

 

Effect of exchange rate on cash, cash equivalents, and restricted cash

 

(489

)

 

 

513

 

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

371,049

 

 

 

(11,339

)

Cash, cash equivalents, and restricted cash, beginning of year

 

137,059

 

 

 

140,606

 

Cash, cash equivalents, and restricted cash, end of year

$

508,108

 

 

$

129,267

 

Rubrik, Inc.

GAAP to Non-GAAP Reconciliations

(in thousands, except percentages and per share data)

(unaudited)

 

 

Three Months Ended April 30,

 

2024

 

2023

Reconciliation of GAAP total gross profit to non-GAAP total gross profit:

 

 

 

Total gross profit on a GAAP basis

$

91,336

 

 

$

99,849

 

Add: Stock-based compensation expense

 

48,914

 

 

 

67

 

Add: Amortization of acquired intangibles

 

903

 

 

 

 

Non-GAAP total gross profit

$

141,153

 

 

$

99,916

 

GAAP total gross margin

 

49

%

 

 

74

%

Non-GAAP total gross margin

 

75

%

 

 

74

%

 

 

 

 

Reconciliation of GAAP operating expenses to non-GAAP operating expenses:

 

 

 

Research and development operating expense on a GAAP basis

$

285,379

 

 

$

46,266

 

Less: Stock-based compensation expense

 

224,149

 

 

 

167

 

Non-GAAP research and development operating expense

$

61,230

 

 

$

46,099

 

 

 

 

 

Sales and marketing operating expense on a GAAP basis

$

379,329

 

 

$

115,362

 

Less: Stock-based compensation expense

 

239,888

 

 

 

199

 

Non-GAAP sales and marketing operating expense

$

139,441

 

 

$

115,163

 

 

 

 

 

General and administrative operating expense on a GAAP basis

$

151,465

 

 

$

22,817

 

Less: Stock-based compensation expense

 

117,394

 

 

 

57

 

Non-GAAP general and administrative operating expense

$

34,071

 

 

$

22,760

 

 

 

 

 

Reconciliation of GAAP operating loss to non-GAAP operating loss:

 

 

 

Operating loss on a GAAP basis

$

(724,837

)

 

$

(84,596

)

Add: Stock-based compensation expense

 

630,345

 

 

 

490

 

Add: Amortization of acquired intangibles

 

903

 

 

 

 

Non-GAAP operating loss

$

(93,589

)

 

$

(84,106

)

 

 

 

 

Reconciliation of GAAP net loss to non-GAAP net loss:

 

 

 

Net loss on a GAAP basis

$

(732,091

)

 

$

(89,273

)

Add: Stock-based compensation expense

 

630,345

 

 

 

490

 

Add: Amortization of acquired intangibles

 

903

 

 

 

 

Income tax expenses effect related to the above adjustments

 

(118

)

 

 

(16

)

Non-GAAP net loss

$

(100,961

)

 

$

(88,799

)

Non-GAAP net loss per share, basic and diluted

$

(1.58

)

 

$

(1.48

)

Weighted-average shares used to compute non-GAAP net loss per share, basic and diluted

 

63,794

 

 

 

59,940

 

 

 

 

 

The following table presents a reconciliation of free cash flow to net cash provided by (used in) operating activities, the most directly comparable GAAP measure, for each of the periods indicated (unaudited, in thousands, except percentages):

 

Three Months Ended April 30,

 

2024

 

2023

Net cash used in operating activities

$

(31,381

)

 

$

(17,457

)

Less: purchase of property and equipment

 

(3,639

)

 

 

(3,373

)

Less: capitalized internal-use software

 

(2,103

)

 

 

(2,416

)

Free cash flow

$

(37,123

)

 

$

(23,246

)

Free cash flow margin

 

(20

)%

 

 

(17

)%

Net cash provided by investing activities

$

40,737

 

 

$

5,046

 

Net cash provided by financing activities

$

362,182

 

 

$

559

 

The following table presents the calculation of Subscription ARR Contribution Margin for the periods presented as well as a reconciliation of (i) non-GAAP subscription cost of revenue to cost of revenue and (ii) non-GAAP operating expenses to operating expenses (in thousands, except percentages):

 

Twelve Months Ended April 30,

 

2024

 

2023

Subscription cost of revenue

$

150,015

 

 

$

72,267

 

Amortization of acquired intangibles

 

(2,579

)

 

 

(592

)

Stock-based compensation expense

 

(35,236

)

 

 

(23

)

Stock-based compensation from amortization of capitalized internal-use software

 

(106

)

 

 

(281

)

Non-GAAP subscription cost of revenue

$

112,094

 

 

$

71,371

 

 

 

 

 

Operating expenses

$

1,421,164

 

 

$

706,870

 

Stock-based compensation expense

 

(586,660

)

 

 

(3,767

)

Non-GAAP operating expenses

$

834,504

 

 

$

703,103

 

 

 

 

 

Subscription ARR

$

856,051

 

 

$

587,454

 

Non-GAAP subscription cost of revenue

 

(112,094

)

 

 

(71,371

)

Non-GAAP operating expenses

 

(834,504

)

 

 

(703,103

)

Subscription ARR Contribution

$

(90,547

)

 

$

(187,020

)

Subscription ARR Contribution Margin

 

(11

)%

 

 

(32

)%

 

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