Rubrik, Inc. ($RBRK)

Our session is about to begin. Please take your seats. Please silence all mobile devices at this time as well. We are about to start our program. Please welcome to the stage, Melissa Franchi.

Great. Well, thank you. Welcome to our first Analyst Day. Welcome to Las Vegas for the [ Ford User Conference ]. And then for the folks on the webcast, thank you for joining us. I'm Melissa Franchi, Head of Investor Relations here at Rubrik. Before we get started, I'll do a quick disclaimer. The slides for today's presentation, which include a reconciliation of GAAP to non-GAAP financial results are available on a orientation sanitating www.ir.rubrik.com. These non-GAAP financial measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP. These statements are based on what we believe today, and actual results may differ materially. These forward-looking statements are subject to risks and other factors that could affect our performance and financial results, which we discussed in detail with our filings with SEC. Great. With that out of the way, let me give you a quick snapshot of what we have entailed today. I know it's a super busy season, so we'll make the best use of our time. We are very excited to do a deeper dive in the breadth and the depth of our platform, opportunity, strategy as well as the breadth and depth of our executive leadership team. We'll have a variety of different presentations today. We will have some time for Q&A both in the morning and in the afternoon. We're going to break for lunch. We'll have a customer and a partner panel for those on the webcast that will be offline. And then we'll continue with our presentations. We'll end the day with Q&A. I do ask that everyone reserves their questions for those designated times. So with that, we'll get started, and I am very pleased to welcome to the stage Bipul Sinha, CEO, Chairman and Co-Founder. Thank you.

Good morning, everyone. Hope you are -- you had plenty of coffee because going as at 10:00 in the morning, after a very busy first day of a conference is a tough time to get started. Are you guys ready? Awesome. I wanted to start with just a quick reminder of Rubrik's mission. When we started Rubrik 12 years ago, our goal was to build an enduring institution. An enduring institution with the cultural foundation that really creates value for everyone in the ecosystem, including our customers, partners, investors, Rubrikants and everyone. And we wanted to also align all of our stakeholders towards a common mission. And our mission is to secure and accelerate world's AI transformation. As you know, AI will probably be the most transformative technology, at least for our lifetime. And every customer, every business, every government want to take advantage of this AI transformation. But this AI transformation creates significant challenges, too. And Rubrik's goal is to give confidence so that our customers can transform their business, roll out trusted agents and really take advantage of 100x productivity opportunities that AI is bringing. So with that, let me tell you where we are as a business. There are a lot of numbers. Obviously, we are a fast-growing business at our scale, lots of customers, what I focus on is our top line growing fast, do we have great margins. But I'm most proud of more than net promoter score. This is a strong indicator of how strong our business is. And more than 80%, I wanted to remind you, is top 1% of the enterprise B2B. So we are in rarified air. Mind you, we sell very complex operational software. And all of the Rubrikants we get up in the morning and think about how do we innovate on behalf of our customers and not just to create customer satisfaction, because satisfaction is not a great benchmark. How do we create delight and more than 80 NPS shows delight in our customer base. You may ask this question, how did we get here? How did we get here to AI as an industry? Because in 12 years of Rubrik, we have seen also evolution, not just of Rubrik, but the whole industry. If you go back 10, 20 years ago, everybody wanted to be digital, a Step 1 from your handwritten CRM on some spreadsheet, maybe to adopting CRM, adopting other systems of record the very, very basic things that we now consider almost legacy or obsolete, but that was [ range ]. And once we got done with automation, which means that our systems of record where digital, then the whole world has started to think about how do we digitally transform ourselves. Because not just systems of record, but how do we work with each other, what are the workflows, how does business work end-to-end. And instead of pushing papers, based on the system of record, can we have workflows that makes all of us more productive. And that really created this whole cloud revolution, SaaS revolution and that peaked in 2021, 2022 era, and that's what gave [ both ] the AI transformation. So first, we did system of record, then we created workflows. And now people are started asking this question that why do we have people clicking buttons? Why do we even have to do one click? Why can't our systems use AI and do the work? And that's the new transformation, and that has the promise of 100x more productivity. But that is only the upside because all of these transformation different eras created different challenges and risks along the way. If you think about it, once you created the data center and had systems of record, you had the issues of flood, fire, [indiscernible] and you needed solutions to make sure that your systems are up and running, and that was the first era of backup and recovery. And that's where Rubrik. We, as a business came in, and we said we are going to give you system of record recovery. That's how we started our business, selling for data center-oriented application recovery. And as cloud picked up, we also advanced our solution and have started to think about it's not just the natural disaster is the biggest disaster. Cyber is the biggest disaster. And you cannot solve cyber recovery with a legacy product that was designed for flood or fire. You have to fundamentally understand that a clean data recovery is what is needed to recover from digital transformation risk, which was cybersecurity. So we built a purpose-built platform for cyber recovery. In fact, Rubrik created cyber resilience as a phrase. Now the whole world has adopted cyber resilience, but we were the first one who said cyber disaster is the biggest disaster. You have to assume breach. And for you to assume breach, you need to have cyber resilience, cyber resilience has two parts. Do you understand the risk of cyber attack when you assume breach? And do you have the ability to remediate? We created a beautiful product across complete cyber resilient solutions. Now we have entered a new era, and this era is different. And this area is different, the AI era because in this era, you cannot practically do any prevention or most of the prevention or any detection. Anybody who says, "I stop anything" is living in the digital transformation era, not in the AI transformation area. So in the AI transformation era, attacks are inevitable. And you heard it from [ Mythos ] that vulnerability chaining toxic combination of vulnerability discovery makes attacks inevitable. So cyber resilience is very, very critical. But the question is, is your yesterday's cyber resilience relevant event today? Because it's not just somebody is getting into your organization and trying to steal your data. That was the yesterday's problem. Today, somebody sitting in North Korea can run your whole business can write your core, do customer service, do customer refunds and make you bankrupt. So businesses face unprecedented risk with AI. And all the prevention and detection solution is not going to help in the AI era. And as we have gone from automation to digital, Rubrik is reinventing itself one more time for the AI era. And here is my fundamental assertion. The cybersecurity industry, as we have all known and grew up with is dead. You may think people is making a bigger statement and trying to shock us. It's not about shock, it's about accepting the reality because we were completely focused on preventing and detecting attacks with 100 or 200 solutions sold by thousands of vendors. Think about it, what -- how good are they? And if they were so good, why did we have a panic with [ Mythos ]? This is what the change is we used to have human attackers. And humans who are working within your companies. Job of the human attacker was to somehow get in and figure out where your critical data is. And human worker had identity. In the worst case, they will steal their identity, steal their data or do ransom-ware attack by going through human identity. That was the world of cybersecurity. But that world doesn't exist anymore. Because in the new world, you have AI attackers. AI attackers don't sleep. AI attackers don't have to figure out how do I go find the right data and change the vulnerabilities because they're reasoning. They are using AI to reason and find the right toxic combination to attack you. And at the same time, more and more workers that run business processes are not human beings, they're agents. And these agents are vulnerable to hallucination because they are probabilistic systems or cyber compromise. And should they get compromised, you have a massive insider attack. So you have two huge problems. AI attackers that you cannot detect in there end and doing tremendous damage at machine speed, and you have agents, should they get compromised, you have a massive insider attack. So when the AI speed breaches happen and if you have yesterday's cyber resilience, that does human speed recovery, there is an impedance mismatch. You can't respond by human speed, which is at best 10 bits per second to an AI attacker which is going 1 million to 1 billion bits per second. You will be out of business. And that's why everybody is so worried about these modern AI models. Second problem, this agentic operators, these operators that are agents, if they get compromised, they will do 10x more damage in 1/10 of the time. And if you have human processes, human set of rules to figure out what is allowed and what is not allowed or somebody managing these detection. Again, you have huge impedance mismatch. Not only your agent, but you will be out of business. So the question is, you have AI speed, compromise or attack and human speed response. That's the world that we have lived in. And everybody talks about, let's fight AI with AI. The question is how do you fight AI with AI? You can't fight AI with the same thing that you have been doing or use the same old software. So to fight AI with AI, obviously, you have to deliver AI speed recovery. To make sure that you are in the business after an AI speed attack. And the second piece is you don't let your agent do bad things in the first place. And if they do bad things, then you also recover at AI speed. But the question is that how do you deliver these two capabilities with your same old software. To solve that problem, you need to deliver these capability also as AI agent. So you need AI-agentic orchestration to deliver cyber resilience to deliver agentic guardrail. So that is the requirement. If you're not following these requirements, you're not building capabilities on these requirements, you are not relevant in the AI era and that is challenged to everyone in the cyber industry. We started Rubrik 12 years ago, as at that time, even today, the best software that you can deliver in the marketplace with API, with automation. But we still needed human beings to be able to deliver these capabilities of automation, ease of use, beautiful UI, but you needed human being to do the recovery. That changes today. We are making Rubrik an agent. Because an agent can only respond to AI speed attacks that are coming in its way. And how does this manifest? Rubrik AI, that is Rubrik agent for all aspects of Rubrik. That never sleeps that monitors collects information, understands what's going on, creates recovery plan, asked human for permission, not work and creates outcome. If human says, yes, do the recovery. It will fully orchestrate recovery, bring the business back to its operational estate, make sure that your agents are back into operating estate without human doing the work. Think about humans are now a manager. They give prompt. I want to get this work done. If Rubrik AI needs to ask for permission or a judgment call, they will involve a human in the loop, otherwise, they'll create the outcome. That's the new world and that is the new Rubrik. And we are manifesting this strategy as a genetic cyber resilience. And that is one more time, Rubrik is redefining what it means to have cyber resilience in the AI era. Just like we define cyber resilience itself for the digital transformation era. You may ask, how does it work? What are its foundations. Obviously, agents can't run on [ aether ]. It requires data. It assumes identity. So Rubrik platform brings together all data and all identity from all the business, process, business systems, across on-premises, cloud SaaS identity everywhere onto a single platform. And on top of it, we have built Rubrik agent orchestration. These are the set and hierarchy of agents that is built into the Rubrik platform to create agentic outcome. Where these agents are doing the world, not humans. You may say how about these agents, it's -- can they hallucinate? Yes, they are also probabilistic systems. And so we have also built agentic governance and security onto our platform, built into our platform. And this agentic governance layer not only governs the Rubrik's own agents, but we are also selling it to our customers to make sure that we create run time guardrails customers, agents for sales and marketing and support and other systems. So in some ways, we are drinking our own champagne to ensure that our own agents are governed and secure. And we are also giving the same capability to our customers to govern and secure their other agents. You will ask this question that before, why did you change Rubrik from software to agent. Obviously, speed of recovery, but what is a higher-level governing thesis. If you think about it, our customers are deploying marketing agents, sales agents, coding agents, customer service agents. When they come to IT, they don't want to manage the software. That is not only creating more work for them, but it's also not ready for AI speed recovery. So Rubrik now fits in the AI framework that our customers are creating across the whole enterprise. And Rubrik is an agent for cyber resilience, agentic governance and security. And it's all built into our platform. And this platform delivers two product suites, Rubrik Security Cloud for cyber risk assessment plus recovery and Rubrik Agent Cloud for agentic security and governance. How does Rubrik Security Cloud delivers AI speed recovery? It preempts the work needed for recovery. And that preemptive recovery engine does the work in peace time to be able to do AI speed recovery in war time. It automatically understands what identity systems should be recovered or roll back and then autonomously creates minimal viable business plan, all built into the platform. Rubrik Agent Cloud not only innumerates and monitors both sanctioned and unsanctioned which is [ sadoIT ] agents, but also creates run time security guardrails so that should your agent take action or attempt to take action that is not commensurate with a policy it is stopped. And we are applying AI to actually create the guardrails. And finally, Rewind is what rewinds the whole agentic work. So if you come to it, agentic cyber resilience is delivering two outcomes for our customers. We are telling our customers to assume breach which means that in the AI era, attacks will come to you and it will be continuous and how do you deliver AI speed recovery. As well as assume a genetic overreach, where agents will misbehave, and how do you ensure that your agents are not doing damage to your business. As I was preparing these slides, our Rubrik Innovation Lab came to me and said, Bipul remember Annapurna. We have been working fast and furious on Annapurna. And we were trying to figure out where does Annapurna really create the maximum value? Because Rubrik has all sorts of data. But where does we can really make an impact? And this is the updated Rubrik Annapurna. What we found was that vast majority, 80%, 90% of enterprise data is unstructured data sitting in their file system or in the [ S3 ] or object store. And it is very hard very expensive and very slow to understand the classification and nature of this data. And it is such a high volume data that if you load all the data before you can figure out what you can use and what is the classification and categorization of this data. It's a very expensive proposition and people don't do it. And these is like your x-ray data, your semiconductor design data, it is your manufacturing images data to see the batch manufacturing is going all right. So lots of sensor data that all comes in. Rubrik not only breaks the of physics, but also economics to deliver unstructured data AI by creating catalog integration with [ Unity ] catalog and providing catalog before loading data so that people can figure out what is the right set of data they want to actually apply AI to? And once they apply AI to the right data, and we actually deliver data in the tabular format so that they can create an AI outcome and also have the providence and history on what data they created the AI solution. We believe that it's a very important area, could be an important market opportunity for us. Early days still in the innovation lab, but very excited. So in summary we have one platform, solving for two imperatives, assume breach and assume overreach across two suite of products built on a very strong foundation of the Rubrik platform, and that is agentic cyber resilience. What is our market opportunity? Where we can and who we can sell this product to? Rubrik sits at the intersection of data, identity and now AI. If you look at the data piece, that has been our heritage. We help our customers secure their data. We help our customers understand their data. We help our customers recover their data and restart their businesses. So we are doing across data dimension, both the risk of the data and remediation of the data. If you look at identity piece, we have a strong business in identity resilience across two vectors also, identity risk and identity remediation. With AI, and with the Predibase acquisition and creating this run time guardrail engine, we are doing three things: understanding all your agents, creating guardrails for our agents and then doing Agent Rewind should anything go wrong. So a complete platform end-to-end. You may ask Bipul, why are you doing AI? We are doing AI because agents assume identity and work on sensitive data. And Rubrik has full enterprise context on data, full enterprise context on identity, so it's very natural for us to give full security for agents. And we are doing all of it on a single platform with multiple products. And that is where the Rubrik's huge consolidation opportunity is. Because if you look at our customers, just across data dimension, whether it's enterprise on-premises or cloud or SaaS, buying numerous point solutions. These solutions don't talk to each other. Should anything happen to your data, you have to turn 13 [ norms ], one for each service within AWS to be able to recover. Rubrik has a single policy engine, single platform, single way to bring your business back into action. And now we are doing two agents, so at AI speed. If you look at identity dimension, again, our customers have multiple point solutions they are buying for identity posture management plus identity recovery. And if you have different kinds of identity platforms, they have one solution for each. Rubrik is one platform, one solution across all your identity. And similarly, for AI, you may hear there's a lot of companies trying to do AI agent security. Some people are only doing observability, some people are only doing identity risk. Some people are only doing run time. Some people are talking about Agent Rewind, Rubrik is one platform where all four capabilities are built into the platform with full enterprise context around data and identity. And that's why we believe that we have a unique opportunity to not only solve the data issues but identity plus AI. And that's what creates significant time for us from data protection expanding into security and resilience pieces. Another large market opportunity, expanding into identity, resilience and identity recovery solutions and then expanding into a massive AI deployment and security. If you combine all of it, we are not opportunity constrained, over $125 billion market. But Rubrik has didn't get there this number to start with. We always build solutions and expanded TAM. Every single product, every single vision, every single market that we enter, we think about how do we get a bigger share of wallet, how do we consolidate for our customers, create a single solution, a single platform that is logically and intellectually for our customers connected and deliver a complete end-to-end solution. And it creates a significant flywheel for our customers and us because our customers also want to deal with fewer vendors. So they want to adopt more of Rubrik solutions, and they can start with Rubrik in one of the six or seven ways. They can just start with our AI solution. They can just start with the identity solution. They can just start with the cloud solution. They can just start with the SaaS solution, just start with on-prem data center solution. But any product they buy, we instantiate Rubrik platform for them, single policy, single platform. They just click more buttons and expand the solutions. And that's the power of our platform, and that's the power of flywheel. And that is the reason that when we introduce new products, we are able to scale it quickly because they don't have to buy [indiscernible] tier ton other product and think about yet another way to manage it is fully and completely integrated onto our platform. So this is a practical example of how it manifests for Rubrik as a business. When we first introduced cloud or cloud solutions, it took 5 years to get to $200 million ARR because this was our first attempt to the multiproduct thinking. But when we introduced our M365 solutions, it went faster because customer understood that it's a single platform you have to flip a switch and adopt a new platform. So it went from 4.5 years for cloud to 3.5 years for M365. When we introduced enterprise edition data security products to detect ransom-ware to do data classification to do threat hunting monitoring as a package. It took only 2.5 years to get to $200 million. Again, it shows that the effect of the platform. Our platform is based on complementary network effect. What is complementary network effect, when you adopt more solutions, the value of all your existing solutions go up. So that's why it accelerates. So when you introduce new products, it goes faster because the value of all other products increases. So when we introduced identity, in just over a year, we went to $50 million from cold start organically built product. That's the platform effect, not platformization, real platform. But our customers are also saying you guys have lots of products. They want to consolidate, make it easier for us to adopt Rubrik. So we are launching Rubrik Flex, which is truly a platform contract, one contract, one commitment. It helps our customers adopt our products faster, adopt new products faster, they can pick what products they want to consume and they go. We are very proud of our team and our velocity of execution not only in building products and taking to market but also scaling the business operationally, creating a disciplined execution engine that takes the suite of products across the whole platform to the customers and scale the business. We are just getting started. In my mind, company's age is in decades, not in years. We just finished our first decade. We are on to our second decade. We have the product. We have the technology. We have the team. And most importantly, we have the entrepreneurial hunger to go build a lasting company. There is Rubrik, the security and AI operations company. Thank you.

Great to see all of you here in person. I'm Arvind Nithrakashyap, Co-Founder and CTO of Rubrik. I've been in the industry for a long time. I'm probably dating myself. The Internet was nascent and e-commerce was nascent when I first entered the industry. So I've seen the Internet transformation. I've seen the cloud transformation. I've seen the mobile revolution. But I have never seen change at this space in the tech industry before. And organizations businesses are dealing with a lot. But when you think about risk, there is a whole new dimension of threats that they have to contend with today. Cyber attacks, which are previously engineered by smart hackers, sitting in a remote corner of the world are now going to be engineered by AI. What this means is that not only are breaches inevitable, they're going to become more frequent. And then, of course, we want to -- everybody wants to deploy agents. There's a huge promise of productivity, 10x, maybe even more with agents, but they also present a huge risk to the critical business data and assets. As we all know, agents can be -- can hallucinate and make mistakes. We've all seen that every time we've used a chat bot. But it's also pretty easy through malicious prompts to coerce them to do something that they should not. And the challenge is all of this is happening at AI speed. Things are changing so rapidly. So the only real solution for organizations is to be resilient. They have to know that these things will happen and they have to be resilient and be able to get back up. Now if you think about it, any solution to this problem has to span across data, identity and AI. Most vendors and platforms focus on just one of these areas. If you think of a cyber attack, you need to understand what are the identities that are compromised. You need to understand what critical business data could they access. And then you need to be able to recover all of this if something -- if they do destroy your critical business data. And again, agents also assume identities, operate on critical business data. And so to make -- to be resilient to agent mistakes, you again need to be -- need to understand both data and identity. So fundamentally, you need a platform that is the intersection of data at in AI and Rubrik is the only platform out there. We ourselves started in the data management space, but because of the unique architecture and platform that we built, we were able to bring that same platform into identity and provided solutions and identity. And today, as agents become more mainstream, we are able to now bring that same cyber resilience capability for agents as well. So let me take you back in time about when we started this company and we built this platform. So when we started Rubrik 12 years ago, typically, what the solutions did was really bring together multiple products. You bring a backup software, say something like [ combater ] or [ beam ], you would bring backup storage, set your data domain. You would buy media servers from Dell and HP or other such server vendors, put it all together and build a solution. The challenge with this is, each of these components only have a partial view of the enterprise data. Nobody has this holistic picture. As a new startup, we had a clean sheet of paper. We said, why do we reimagine this whole thing. What is he built a single stack of software, which capture data and metadata and we created this concept called self-describing data. This is an extremely powerful concept, and I just want to dwell a little bit here. So let's take an analogy. So let's assume you have a bunch of rooms. They're all locked. You have a bunch of keys. One of them has a safe with the crown jewels in it. Now if all you have is a bunch of keys, you don't know which door opens -- which key opens which door and you don't know where the safest, so you have to go try each key on each door, and figure out where the ground jewels are. But let's say the keys came with a little tag. It said, "Hey, this is what -- this is a door this key opens". And all he tells you, "Oh, by the way, this is a room that has it safe". So one, that is that important key you need to safeguard. And you know that if you need to get to the crown jewels, you can get to it very quickly. So this is the power of self-prescribing data. What it does is it gives you a map of the entire enterprise. It shows you where the critical assets are. It shows you the identities or users who operate on the critical data, and it tells you what are those critical data and identities you need to monitor. And today, you hear a lot about enterprise contracts, how that's the most important thing for AI. If you think about it, this is the crux of what enterprise context is. Your critical applications, your critical data and the users who operate on them. And what we do is we don't just have a point in time up data and metadata or the self-describing data we take snapshots of this over time. So we actually have the full history. We have a full time series of how enterprise data and identities are evolving. And that is what allowed us to capture the full context of applications, identities and build a data threat engine natively into the platform. That is what allowed us to say, where does your sensitive data lie? Who are the users of access to it? Who are the users are maybe accessing it? Are there threats in your system? Could there be an attack that's happening right now? All of this information is because we have this enterprise context built into the platform. Now obviously, we've been delivering cyber resilience. I'll call it for the software era. But now as we enter the AI era, everything is happening at AI speed. So you need to be able to have AI help you recover your business as well. And this is where we were able to build this agent orchestration layer. And again, you cannot do this unless you have that enterprise context. Because the agents themselves know how to access applications, how to secure them, how to set the right ways. That's how we're able to completely automate your minimum viable business recovery. And it's the same enterprise context that allows to understand what are the applications agents that are now being deployed, access, what kind of identities they assume. When an agent takes an action we have the understanding of what the intent behind the action is and then we are able to determine whether it's in violation of an organization policies or not. And then if the agent does make -- still make mistakes, we can surgically understand the actual operations that were erroneous and surgically rewind them. So the challenge with cyber recovery. It's not just about recovering the data. You just can't go to yesterday's backup and recover the data. The challenge is that you need to answer a lot of critical questions before you can even start on your recovery action. Many industries, regulated industries, they need to know, was there any customer data that was compromised, health care? Was there any patient information, [ HEPA ] data that was compromised? They have an obligation to disclose this to their customers. You need to understand where the sensitive data lies. Was there -- do you need to understand before you can recover, you need to know what the source of the attack was. Was that malware sitting in a bunch of applications within the organization? So this is the reason why cyber recovery takes so long, gathering all these answers requires us to scan large amounts of data. If you want to recover at AI speed, you have to precompute all this information beforehand so that you're ready to go when an attack happens. And this is fundamentally what the preemptive recovery engine we've built into the platform does. As we ingest the data, we are able to capture the data and metadata for both data applications as well as IT systems, and we create a uniform representation which builds is time series over time. And then we index the metadata, and we also hash all the content. So this is what allows us to, for example, if a new threat is published today that nobody knew up until now, in a few seconds, we can go and say, "Oh, by the way, yes, this threat is present in your organization. It originated in this application 10 days ago, but now is present in 15 different systems within your organization. So this is the power of doing all of this, precomputing all of this so that you can quickly answer these questions. So when you are hit by cyber attack, you don't need to go scan and find this information. The information is at your fingertips. And this is also what allows us to actually figure out the right clean recovery point that we can then say, you -- this is the point you have to recover it so that you know the malware is no longer present in the system. So this is the key behind the preemptive recovery engine that pre compass all the information piece time so that you can quickly act when there's an attack. Now identity has become the biggest attack vector. Almost 80% of attacks, the hackers aren't hacking into your systems, they're logging in. And the interesting thing about such a net compromises that these often act as backdoors for attackers to do future attacks. So this is why it's extremely important to understand the relationship between identities and data. If you think about a hospital, which has critical patient information, or a bank that has critical financial information. You need to know where this data sits, which applications this data sits in. You need to understand who are the users have access to this. So that when such a user is compromised, you know the impact immediately. Without this knowledge, you'll be inundated with a lot of alerts and you won't know which ones are important, which ones are not. So our platform applies the same methodology that we applied to applications where -- we capture data on metadata, so we understand user hierarchies. We understand users, groups, roles and how these privileges change over time. Obviously, we also understand how applications have -- and data have evolved over time, where the sensitivity sits. And we are also able to understand the relationship between identities and this critical business data. Now obviously, attacks are happening at AI speed. So you can't have humans trying to do the recovery. So think of what it takes. If you have -- if your cloud account gets or your secure billing application gets hacked, these are all the steps you need to take to get your business up and running. You don't want to be doing this on the day of the attack. It's going to take you weeks to get this done. But because it takes so long and it's so complex. Most organizations would love to do this on a regular basis before an attack happens, but they don't do it because this takes a lot of effort and time to be able to do this. But think of this in the agentic era. The human comes and expresses the outcome they desire. They want to secure their billing application. The agent goes and figure it all out, figures their dependencies, builds a run book and says, "Hey, here's a run book", can you validate that I've got it right? If the human says no, it goes back, figures it out, comes back with a new run book. And then the human says, yes, this looks good. Go ahead and test it. And then it goes and test the recovery, make sure that it works. If it doesn't work, again, we'll go back, figure out what went wrong, fix it. And then final say, yes, I have a working -- I can now -- I have a working recovery run book. And I can say, if you want I can schedule it to run monthly and send you report. This is what -- so now when a CIO goes to the Board, they can say, "Yes, I'm prepared for cyber attack because you know what? I've done this 12 times over the last year, I know this works". This is the confidence that customers need to have in this AI era attacks. And if you look under the hood, what we have done is really built an agent orchestration layer, again, taking this enterprise contact that we have in the platform and then run -- we run multiple agents which are all understanding the sensor data sets, where there's malware, how to build cash-basis dependences build a run book and then humans are mostly reviewing and approving. And this is how we have to operate in this new area. And finally, let's talk about as organizations deploy agents. Agents are also operating at AI speed. You can't have human stepping in and doing monitoring every action that the agent takes. This is why you need AI to govern agent actions. Now obviously, with the enterprise contracts that we have, we already understand where agents, what identities they assume, what access applications access. But in terms of dynamically controlling the actions that they take. With the predicate acquisition, we have actually built small language models that are able to efficiently just take a policy written natural language. And then based on the actions that the agent is taking, they can make a decision whether it's in violation of the policy or not. If it's in violation, it will block the action. So that action doesn't even hit your production. But let's say, you missed one case in the policy. And something sneak through. Then we can again, surgically, we can rewind the action that the agent took. And all it takes to fix that hole is to go back to the policy and add a line that covers the case and now the next time that action will be blocked. So I talked about the platform, but what does it take to build such a platform at scale? We have actually been securing applications across the enterprise, data center, cloud, SaaS, identity providers and now agents. What we have essentially built is this ultimate system of record, which is a system of record of last resort. When everything else fails, customers come to us. And such a platform has to be able to restore data to production and we can get one bit of information wrong because if we do the applications won't come up. This is why this is an extremely complex platform to build, and it requires a very deep understanding of applications, identities and the relationships between them to be able to do this across all the different kind of infrastructure that an enterprise has. But just that is not enough. These applications, each enterprise configures these applications in very different ways based on their business needs. So that these applications explore under thousands of configurations. And there's no manual or run that tells you how enterprises configure these allocations. So the only way to do this is to work with thousands of customers understand the different ways in which they configure these applications, bring that knowledge back into the platform and iterate. And this is what we've been doing over 12 years with thousands of customers. It requires a lot of time and deep relationships with enterprises to be able to get the platform to where we are today. That's why a small startup or two kids in a garage can't code this platform. So again, there you have it. We have built a platform with a very unique architecture with this fundamental concept of self-prescribing data. This allows us to deliver agent cyber resilience to our customers. We deliver it through two product suites, the Rubrik Security Cloud and Rubrik Agent Cloud, and they address the assumed breach and assume agent overreach problems. And to talk in more detail about these product suites. And now I'd like to welcome Aneeka Gupta.

Good morning, everybody. I'm Aneeka Gupta. I'm the Chief Product Officer at Rubrik. And I first want to say this is such an exciting time to be in product. I don't think that there's a moment in history more exciting than right now, given the speed of transformation that AI is creating for all businesses. You heard from Bipul on why Agentic cyber resilience is the most important problem that enterprises need to be solving today. And you just heard from Arvind about the ingredients that make up this platform, the enterprise contact the preemptive recovery engine, the agentic orchestration and guardrails that make that up. Now I want to take you a few clicks deeper into our actual product suites and product portfolio and show you the power of our multiproduct platform. And to begin with, I really want to start with autonomous minimum viable business because this is the place where we're pouring in hours of and tons of people and time to actually innovate because this is a place where organizations have incredibly important and complex business outcomes and technology hasn't delivered on the promise of being able to secure these applications. So I want to take you into the day of an organization getting hit with the cyber attack. So imagine you're in an organization, you get hit with the cyber attack. The very first call the CEO is going to make is to the CISO. And he's going to ask is our business up and running. And the CISO is going to go to his team, his or her and say, okay, what are our critical business applications? Are those still up and running? Can we recover that? Those applications are what -- which make up your minimum viable business. Now why this is really hard. If you think about an example application. Applications are made up of many different components. You have data, you have identity, you have configurations, you have infrastructure. And all of these pieces come together to build your application. If you go to recover this application and you get the order, the sequencing, the dependencies incorrect, then your application will not run and your business will be down. Now layer on top of that a cybersecurity instance and what you have to do, before an attack, you have to take these incredibly complex dynamic applications and be able to map all the dependencies, map the full topology. Then you actually have to create your recovery plans ahead of time so that you can make sure that, that application will be up and running. On the day you're hit with a cyber attack, you then have to determine the scope of the attack. What identities, what data was actually compromised during the attack. You have to figure out the point of infection. When did the attackers first get into the system? What are all the back doors that they created, you need to look at where the actual malware or other indicators of compromise first landed in your data so that you know where is a clean point of recovery. And you need to assess the sensitive data impact for most organizations, especially highly regulated organizations, they're going to have to report this back to their auditors, to their regulators. And then you have to quarantine the malware. You have to make sure that the bad actors don't reenter your platform when you do your recovery. And after all of that, you have to orchestrate the recovery. This is an immense amount of steps. And when you think about the complex applications that make up an organization's minimum viable business and the multiple steps that they have to take for each application for -- in a cyber recovery incident and you multiply that and compound that with the fact that attacks are happening now at AI speed, the reality is human operators just can't keep up. And that is why we built Rubrik AI. With Rubrik AI, all of these steps that I told you about both before the attack and during the attack are completely absorbed all that complexity is absorbed and replaced by agents. So now I want to show you what Rubrik AI really looks like in action. So meet [ Malca ]. She's an IT admin and he just up to her worst nightmare. A security incident has occurred within her Microsoft 365 application. By the time [ Malca ] sees the alerts through our integration with CrowdStrike, Rubrik AI has already done the investigation. It knows what was compromised and built a recovery plan. [ Malca ] didn't have to figure it out, any about on our own. All she has to do is review and approve. In the old world, this moment kicks off days of chaos, security teams scrambling to understand what happened, recovery teams manually piecing together what store executives asking for timelines, no one can answer. It's expensive, it's slow and it's very manual. Here's what's different with Rubrik AI. She sees that the finance group was compromised. Eight users were deleted and the attacker escalated privileges to get unrestricted access. Typically, putting together these insights would have required collaborating with multiple teams jumping between multiple tools. But now she can get a clear summary of how her identity systems were compromised all in one place. She also sees the attacker deleted and downloaded a bunch of data. So this is a full-blown ransom-ware and data ex-filtration attack. Rubrik recommends a previously created recovery plan. It's not asking the customer to figure out what to restore and in what order. This is the moment that used to take days, building a recovery run book, coordinating across teams deciding what's critical enough to restore first. Rubrik AI surfaces the details of the identity recovery plan. You can see exactly what's going to fix. The AI has scoped this precisely. It's not just restoring everything blindly, it knows which users were affected and exactly what needs to be rolled back. One prompt and it's done. With the recovery of identity initiated, so users can go back and log in. Rubrik AI immediately follows up on recovering the data. It's staying in the loop, not just firing and forgetting. Rubrik AI then pulls up your data recovery plan, which shows the data that will be recovered based on the scope of the attack. Rubrik is orchestrating the entire M365 recovery autonomously. Instead of security and IT teams having to piece together what actually happened during the attack and what to restore to get back to a clean state. Rubrik AI is giving transparency and a clear recommendation. And then the minimum viable business recovery is in progress. What previously took admin is hours and days to investigate is now down to a couple of prompts, minimizing business impact. So you can see here the power of Rubrik Security Cloud to consolidate the work of multiple teams across security and IT during a cyber attack. This is the platform of -- this is the reason why having all of these capabilities available in one platform helps organizations accelerate their cyber recovery, especially in the face of AI speed attacks. Rubrik Security Cloud is a platform. And within this platform, there are multiple products we sell. We sell Oracle protection, [ Nutanix ] protection, [ RDS ] in AWS, M365, Salesforce, DevOps protection, unstructured data, identity. And with all of this, our Rubrik Security Cloud is integrating with leading cybersecurity vendors who focus on detection and prevention so that we can bring together detection and prevention to help teams fight AI with AI. You layer on top of that Rubrik agent cloud, which is helping monitoring with -- for agents, providing the agent guard rails and then providing Rewind in the inevitable case where an AI agent goes awry. And now together, we have an incredibly powerful set of product suites. With Rubrik Security Cloud and Rubrik Agent cloud, we have a platform that delivers true agentic cyber resilience, cyber resilience for the agentic enterprise and agents for cyber resilience. So Rubrik is a platform, and we have numerous products and solutions we sell to different buyers. Agentic cyber resilience is truly an enterprise-wide problem. It matters to the CIO, it matters to the , it matters to the CTO. So what does the CIO care about? The CIO cares about business transformation. When they come to Rubrik, they buy M365 protection, cloud protection, data center protection, identity protection. And they're looking at all of this and consolidating multiple solutions into one platform. So they don't have to buy point solutions, they just buy the Rubrik platform. When you look at the security teams and the CISOs, they're in charge of managing risk, which is only getting more and more complicated in an AI-powered world. They come to Rubrik, and instead of buying these niche solutions for protecting identity, whether it's active directory, [ Entree ] or Okta and piecing together both the risk and posture piece and the remediation and not having any context of the data as they buy the Rubrik platform, one consolidated place for managing risk for data and identities. And if you look at the CTO, what does the CTO care about? They care about accelerating agent deployment. And instead of buying all these different point solutions and trying to layer together piecemeal, a strategy for how you secure agents with monitoring with real-time run-time protection and with Rewind, they buy the Rubrik platform. So all of these organizations and teams are coming together because they care about Agentic cyber resilience. So how do we actually capture the value across all of these different buying centers. And all of these different personas. We've developed a multi-vector monetization model that really meets our customers where they are. So whether a customer wants to start with data on-prem, cloud, SaaS data, whether they want to start with identity, whether they want to start with AI agents. They're able to pick and choose and expand with Rubrik across all of the surface areas that matter in their enterprise. And if you look at these surface areas and if you look at the way that we monetize these surface areas, all of this is accelerated with AI. AI creates more data, AI creates more nonhuman identities. And of course, as organizations adopt AI faster and faster, deploy more agents, that's only going to grow exponentially, the amount of agent activity. The second factor of our monetization is really looking at our -- the cyber resilience maturity of an organization. So we've developed additions that allow an organization to land with some of the more basic capabilities. But then as their resilience matures with their organization, they can expand with us. What we find is that many customers start with one, two, three products and then they want to consolidate more and more and more solutions with Rubrik across our platform. And that is why we launched enterprise -- Rubrik Flex. Rubrik Flex is one license, one contract, one commitment for agentic cyber resilience. Similar to other large platform companies, we've developed the solution so that no matter where an organization wants to start. Maybe they want to start in the data center and they want to go to cloud. Maybe they want to start with SaaS and then go to identity. Maybe they want to start with their applications and then go to agents. We're able to solve all of that on their time scale with Rubrik Flex. This gives customers one commitment and ability to access all of the products and flexibly allocate their spend across those products. Rubrik Flex is going to enable Rubrik to sign larger ACV deals massively differentiate from competition and enable frictionless sales for our sales teams. As an example, we recently signed a Global 2000 insurance company on Rubrik Flex. It was an over $6 million ACV deal, over $30 million [ TCBL ] over 5 years. They ripped and replaced legacy backup solution for their on-prem environment as well as their cloud native backup solution, and they chose Rubrik for Agentic cyber resilience. They're starting with three products to begin with, and they have a plan to scale across the entire portfolio. Our belief is that rubric Flex is going to be the default motion for selling to Tier 1 and Tier 2 customers. who really buy into our vision of a genetic cyber resilient and who buy into these two product suites of Rubrik Security Cloud and Rubrik agent Cloud. In the 5 -- almost 5 years that I've been with Rubrik, it still feels like day 1 because of the pace and velocity of our innovation. We have a deep culture of being able to stack S curves to continuously innovate on the edge so that we're constantly differentiating from our competition. And we're doing this while building all of it on one platform, even when we make acquisitions. And all of this is super exciting because as organizations adopt more and more of our products, they get compounding value from those products as well. So if you look at our innovation history, we started with enterprise data protection in the data center. We then layered on cloud protection to expand to cloud and SaaS protection for all of the SaaS apps that are critical for running an organization's business. And then as the world realized that ransom-ware attacks were prevalent and you needed cyber recovery, we layered in data security and continue to innovate on that frontier as well. And as attacks move from just ransom-ware to actually identity as the primary attack vector, we built identity resilience. And now in the past year, we've layered on agentic security on top of that. So as you can see, when we say we're multiproduct, we are really multi-product. Customers are sometimes consolidating up to 10 different solutions that they were using for cyber resilience that were disconnected that didn't talk to each other into Rubrik when they buy Rubrik. One of the real keys to this success beyond all the R&D work that we do to drive this innovation has been our go-to-market engine. We have our forward team with [ Jesse and Alok ] leading the way to make sure that we're continuing to sell the products that are tried and true. And we have our Rubrik X team, led by [ Mike Tunicasa ], who helps us incubate and take new products to market as our lateral motion. So now I would like to invite Alok Agrawal to the stage, and Jesse Green, who's going to be with us on Zoom to talk about our forward go-to-market motion.

Hello, everyone. Hopefully, you can hear me in the room. I'm Jesse Green, Chief Revenue Officer at Rubrik. And I'm joined with Alok Agrawal, our Chief Solutions Officer. I just want to start by saying I wish I could be there in the room with all of you. I know we haven't met yet. I was in Vegas at Ford for the past 2 days. But I caught a ride last night to get home from my son's graduation, which is one of those moments I need to show up for. But hopefully, I'll get a chance to meet you next time we get together. Maybe just a quick background. Since this is the first time we're meeting. I joined Rubrik 3 years ago from [ MongoDB ], and I was at [ Longo ] for 8.5 years. joining pre-IPO when we were around $50 million ARR at the time and then leaving post-IPO well north of $1 billion. And I was running the Americas. And when Bipul recruited me to the rubric, we had discussed moving into the CRO role really at the appropriate time, and that came this past quarter. So I've been in seat for a quarter in the CRO role. But I will say that the transition has felt relatively seamless given that I spent the last 3 years at Rubric as the President of the Americas, building out a repeatable go-to-market playbook, hiring the team, and this playbook will translate really well internationally. Alok maybe you could introduce yourself as well.

Absolutely. Thank you, Jesse. My name is Alok Agrawal. I joined Rubrik about 6 years back to lead our global sales engineering team. And at that time, we were just starting our journey from single product to multiproduct, and I helped architect taking our platform, creating a solution package and taking it to market. Last year, my role was expanded to also lead our global partner arm. And our idea here was how do we create and bring more of an engineering and solutions focused to our partner ecosystem, so we can take our multiproduct platform and combine it with our partners' expertise in consulting services and last-mile customizations, so we can jointly create and add more value and outcomes for our joint customers. Over to you, Jesse.

Thanks, Alok. So look, over the next 15 to 20 minutes, we'll take you inside our go-to-market and I hope that you walk away with a better understanding of our strategic priorities will hit on a couple of our independent growth levers. And then hopefully, you will walk away with the confidence that our go-to-market is built for sustained durable growth. So why don't we get started, Alok, if you could flip to the next slide, please. Start off with our three strategic priorities, and we'll drill into each of these further in the subsequent slides. But the first one that you heard a lot from this morning already is our multiproduct platform and specifically the go-to-market motion we have across these. And just as a reminder, this is our agentic cyber resilience platform, which now spans data, identity and AI. And it provides us a critical growth engine so that we can drive our land and expand and explode motions, which we'll talk further about in a few. And so this is driving for us bigger deal sizes, higher attach rates better expansions across more product categories and industry-leading net retention. If I shift over to the middle, our second is really our evolution to an AI-native selling motion. And this, for us, is really about the efficiency of our sellers and the productivity where we embed AI across the entire sales process, everywhere from research to beating prep all the way through post sales. And we're measuring the outcomes which we'll hit upon. And then third is really our distribution leverage and reach loci going to spend more time on later on in the presentation. This for us is really about how do we scale through our global partners. And how do we leverage our internal transformation team, which is unique to Rubrik really is the growth multiplier extending our reach, both up as well as across org structures as we now sell across multiple buying personas as Aneeka just mentioned. Next slide, Alok. So let's first kind of dive into our segments segmentation strategy, so you know how we're organized. And we'll start with our service old market, which, to us, is about 100,000 organizations, which we've defined in our ICP. And within each one, as I mentioned, we will now sell in mobile different areas across that organization. So it's no longer just selling into the CIO organization for data center protection. We now have the ability within these 100,000 accounts to really target the CIO or the CISO org and the CTO org. And then when we look at segmentation, we really look at it horizontally in three ways to slice up this social market. So the first is strategics. These are -- think of it as your Fortune 500 organizations and a subset of our Global 2000. So this is a much bigger [ eye touch ] motion, right? More complexity in the sales process and the sellers here have smaller books. They are certainly more intimate with their accounts, and they have strong relationships with the partners across these core initiatives. Then you move down to our enterprise, which we define as companies above $500 million in annual recurring revenue, and we refer to this as our core. So this is a critical segment for us. And then, of course, our mid-enterprise which is up to $500 million. And so increasingly in this, you'll see a lot of digital, a lot of cloud, a lot of AI native companies, here, and we have more of a high velocity and less complexity motion sellers earlier are on in their career and working on scale plays. And so then if you take our segmentation and you break it out by sort of market penetration, you can see in strategics, we've now landed north of 40% of the Fortune 500, which to me, proves that we have sort of the talent as well as a platform, the playbook to go win in the most demanding accounts in the most sophisticated companies in the world. And yet the enterprise and in mid enterprise, we're still only in the low teens and in the single digits of penetration. And so to me, this prevents an opportunity as we proven we can win in the most difficult demanding use cases and organizations, and we can scale with them. And now we have the opportunity to go penetrate the serviceable market in some of these other segments, and there's a big road in front of us. So of course, across each of these segments, you can kind of think of it as different sales plays, which we've defined and trade the field on. And so for example, in mid-enterprise, like I mentioned, we're focused more with the value-added resellers on scale plays, focus more maybe on our SaaS solutions or identity solutions, our cloud protection, where in strategics, we have a very large opportunity to do significant transactions around larger initiatives. So things like legacy modernization, things around cloud migrations. We partner here very heavily with the global systems integrators. We're super excited about the press release that came out yesterday around agentic cyber resilience for [ Claude ] code partnering with some of the GSIs as mentioned in the press release. And then we're working on large transformational cyber resilience initiatives across these. Just one other point I want to emphasize here before we move on is that we're not concentrated in any single vertical within these segments, although we do have several high-growth industries, specifically health care and banking financial services and insurance and public sector where we have the most market share, we're growing faster than some of the other segments, but we still are very, very relevant in segments like retail and manufacturing and services and iTech and others. And this gives us the ability to be very opportunistic as we look at ways to grow our segmentation strategy and potentially some vertical motions as we scale. And so really the takeaway here on the slide that I want to leave you with is that we're still in a very large very underpenetrated serviceable market. And we have several opportunities where we can evolve this segmentation strategy so we can acquire more market share. Alok, if you could go to the next slide. we'll just turn to our global opportunity. And so right now, we've sold products across 79 countries, despite only having, I think, sellers in beaten the Street direct sellers within our organization within '26. We obviously have some partner coverage and others, but directly, we only have seller in '26. And so given that we have demand and deployments in dozens of markets where we have not yet but decade coverage in some of these markets, by the way, I won't call them out, but several of these markets are places where peer companies like, say, a [ Datadog ] or Palo Alto where MongoDB are doing well north of $100 million in ARR. We believe this provides us a good area to be opportunistic as we look at scaling out our capacity. And when you look to the bottom right on the revenue mix, you'll see that 68% of all of our subscription ARR is coming from the United States with 32% coming for the rest of the world. And currently, we're seeing especially strong growth in international markets. And so we'll continue to invest and we'll scale international opportunities at the appropriate time. And so the way I break this map up from a go-to-market standpoint is, and from a sales leader perspective is we have four key theaters with leaders that report directly to me, where we have the Americas, we have EMEA, we have APAC. And given the opportunity in some of the nuances in Japan, we have that broken out as well into its own theater. Next slide, Alok. So this slide focuses on the first strategic priority that I talked about, our multiproduct platform, expanding data, identity as well as AI. And with the breadth of the platform, we now have multiple entry points into an account, as Bipul mentioned earlier. So data protection, we could start with cyber recovery, it could be identity and resilience. It could be SaaS and now agentic resilience. And for us in the go-to-market or this is effectively a playground for our sellers as we no longer are dependent on a single product area or a single buying center to get in the door. These solutions now span, as I mentioned, multiple different buying centers across these orgs. And so we have several plays that allow us to go identify and figure out how we can enter it into an account. And it also means that even if a competitor is in there in the data center, we still have plenty of opportunities to be able to get into the account and grow our wallet share. And so once we've landed with an initial product in this multiproduct motion, we have three different ways to expand, and we built sales motions around each of those. You probably heard Kiran mentioned on the earnings call. But our primary unit of measure what we index on is data. And so once we've landed an account, we'll likely see those accounts given the growing size of data within the enterprise, we'll see those accounts organically grow within the workload that we sold to. And then we can also sell to additional workloads. So Aneeka mentioned that we could sell to the Oracle databases. We could bring on VMs, we could bring on RDS if we're in the cloud as an example of data cloud services. we can protect. And so we can continue to expand workload coverage. And then the third area is we can sell additional product categories. So we could sell security products, identity resilience as an example to a data center customer. And so for us, this gives us a massive opportunity to not only land but also expand, continue to expand and then get to the point where we explode. And I couldn't be more happy personally. And our partners, frankly, we couldn't be more happy with what we had announced yesterday around flex licensing. Aneeka gave you the case study, so I won't say it back again, but our largest deal in the first half are one of our largest deals, I should say, leverage flex for agentic cyber resilience across multiple different workloads. So we think there's a big opportunity here and we think this multiproduct platform strategy gives us a real opportunity to continue to land, expand and explore with our customers. And maybe just to illustrate this with a few statistics, this past year alone, over 75% of our customers now are using multiple different products in multiple different product categories, and even our new customers now 70% are landing with multiple product categories attached. And so this helps us also grow up our average deal size, which I mentioned earlier. So to make this real, Alok, why don't you share two customer examples since you're in the room of what we mean by land and expand and explode.

Absolutely, Jesse. So I have two customer examples. I'll start off first with a health care IT provider serving over 10 million citizens. And their initial problem was very classic. They essentially had multiple different tools, a lot of complexity, ransom-ware exposure, and to top it all off, they had very, very high costs. And so we landed into this account with their on-prem data center. So we essentially were protecting and securing their data for a subset of their data centers. And we consolidated five different tools on the one Rubrik platform. We implied their operations, and we were able to show significant TCO savings, their entire ROI model completely changed. The second very, very quickly thereafter, they went and added our DSPM software to secure their health care data. They were extremely afraid they were very concerned that if they have a breach that their sensitive data, their health care data, they're very important citizen data will get ex-filtrated. And I can tell you that as soon as we were deployed very quickly, we not only showed them, but they were certainly shocked with where their sensitive data lived and who had access to it, help them remediate it. And of course, now we do it on an hourly and daily basis. And I want to say the defining moment -- in both of these examples I'm giving from examples where I was personally engaged along with the rest of the Rubrik team. But I want to say that after this happened, the defining moment for us was when this particular company had to go through an audit based on the [ NIST ] framework. Not only did they pass with flying colors, the auditors had 0, and I'll repeat that the auditors had 0 remediation requirements. For a public sector company, that's the difference between operational confidence and regulatory crisis. And I want to say personally for me, this was a very, very fun moment in the account because they completely standardized on Rubrik. They essentially the decision, we want Rubrik everywhere. And I should keep clicking this -- so that was the DSPM, the defining moment. And what they did at this point in time was they standardized on Rubrik and displaced all of their legacy tools and put Rubrik in all of their data centers across the entire country. Big moment, huge expansion. They standardized. They started asking questions. The next question they started asking was what happens to our active directory in an attack, who's protecting Microsoft 365 in the environment. What happens if that gets compromised. Both of those questions were answered by a single click. It was a single flip. I think Bipul mentioned, the single flip of a button and we just enable the license, they had the capabilities within hours, they were up and running. I call that the platform in action. It's the platform effect. The customer has confidence in the technology. They have confidence in our account teams. They have confidence in [ Gary's ] support and post sales teams, and they just go and standardize and keep adding more and more software footprint. Earlier this year, this particular customer also added Rubrik agent cloud to their environment. Their criteria was really very simple. They basically said, we're rolling out agents, how do we get a level of confidence that we have some control on the agentic actions, and our strategy is not just hope. And the second was, they had seen all of these the last 6, 9, 12 months' worth of agents going in deleting a calendar, the leading a database, deleting someone's e-mail, deleting code repos. I think that's more of a recent news, at least from my memory. And so what they wanted was how do we have some level of control, some level of guardrail for agentic actions. But if an agent does something destructive, how do I go and recover and remediate. And this particular account is not done adopting Rubrik. They're already talking to us in terms of how they can add rubric for their packs data and footprint. And for those of you who are familiar with packs, that's a ton, petabytes and petabytes worth of capacity. So they're not done yet. Big, big platform moment for us. We'll keep expanding here in this particular account. Healthcare. I think Jesse mentioned two of our top verticals, I would say, growth from a growth perspective, health care, financial. The second example I'll give is in the U.S., so in the Americas, financial institution, they came to us, and this was introduced to us by one of our top partners here in the U.S. The requirement was we have a lot of data across multiple different data centers. And this was a few years back, they essentially said, we need better ransom-ware protection for our core applications. I want to say this was [ MVD ] before we coined the term [ MVD ]. And so they basically said they want immutability, indelibility, air gap. And I remember asking the person who is now our champion, I asked him, I said, "Why don't you just do that with your existing solution?" He said, "we did talk to our existing vendor and they said their idea of immutability, indelibility, air gap is selling them more hardware, more software, more complexity, much higher cost, much higher cost of operations". They did a demo with us. They did a pretty extensive proof of value with us. We won that. We landed with $300,000 with -- on the data center for a small core set of apps. Very quickly after that, they essentially said, Microsoft 365, it's a Tier 2 application for us. None of our employees can work if they cannot collaborate with each other, e-mail each other, use teams, Sharepoint, things like that. So they deployed our SaaS protection, our M365 product for 26,000-plus users. And then I want to say at this point in time, again, similar, similar motion. They have confidence in the technology. They love our sales team. They love their partner. The partner that introduced us into this account. They have a very, very long standard trusted relationship with this particular partner, they decided at this point in time, we are going to roll out rubric for all of our data centers across all of the Americas, big, big massive expansion at this point in time. And then this is where, again, I want to say that the platform effect starts to take place, as they started bringing up new applications, they started their journey towards developing applications in the cloud, moving workloads, moving data to the cloud. They essentially said, we have Rubrik everywhere else, why don't we click this button and get cloud data protection, cloud data security. How do we go and better protect our [ Entera ] ID with M365? How do we go and better protect our Okta footprint? How do we go and better protect our Active Directory on-prem footprint. And that's where they adopted cloud identity. And then I want to say the next purchase after this was they essentially said, "Hey, we have good immutability, indelibility, air gap. We have confidence that with Rubrik, our backups are going to survive a cyber attack and a ransom-ware attack? But we are now afraid that we will not meet our commitments, our SLAs for cyber recovery". And this was the moment where they upgraded from what we call the Rubrik Foundation Edition to Rubrik enterprise edition. And this is where you get all the capabilities in terms of very quickly identifying your blast ADS, your sensitive data, threat hunting, threat monitoring, what we call the preemptive recovery engine, preemptive recovery the world cannot exist. You cannot wait now no longer with -- and [indiscernible] has changed the world in the last 3 months, you can no longer wait for a process to start after an attack. You need to have the tools and capabilities that will help you find the clean state of data preemptively. And we launched this preemptive recovery engine, I want to say, 3 years back, 2, 3 years back. And so this particular customer upgraded their entire footprint from foundation addition to enterprise edition. I want to say with this customer, we stopped being our relationship as a customer and vendor. It became literally a 3-way partnership between the customer, this particular partner and Rubrik. And now we have very, very regular calls. Arvind joins a lot of those calls. I'm very much a part of this as well, where we are strategically thinking about how do we protect this particular financial institution? How do we go and enable to use this as a way as a competitive advantage with their particular competition. Jesse, back over to you.

Great. Thank you, Alok. Thank you for putting us in those moments. I felt like I was sitting side by side with you back in that deal. So in those deals, I should say. So let's hit on our second strategic priority. We'll move on here. And this is really the evolution I mentioned around our AI native selling motion. And I recognize you guys likely in the room are hearing go-to-market teams talking about AI all the time. The Rubric, I promise you, it's a little bit different. For us, we are like truly making the investment to try to embed and thread AI through every single touch point in our sales process and the buying journey. And so that starts from demand gen from meeting preparation from call transcription and being able to gain insights from product feedback back to the product team, into validation around how we're doing proof of values, proof of concepts and winning the technical buyers over from how we create presentations to how we create proposals. And then ultimately, how do we identify within our territories, the best opportunities for cross-sell and upsell to accelerate expansion opportunities? And also what is the right product at the right time, at the right moment to the right seller and the right buyer, I should say, to go land a new logo given that we have a multiproduct platform now to go land on. And so there's a massive opportunity within AI to really help simplify things for our sellers, and we can measure this in multiple different ways. But when a seller at Rubrik walks in from day 1, we're making the investment where we give them a full AI stack. So a couple of applications that we've built in-house, a few that we bought but they also get access to cloud to work. They get access to glean. Some of them get access to [ Claude ] code even. And then we pair them with eight purpose-built skills that every single seller gets from day 1 so that they can immediately get started analyzing their territory, conducting the research they need, building out their contact list, building out their account sort of maps with our partners and then identifying the right sales plays and the right messages to go start doing outreach immediately. And so the last thing I'll just highlight here is, for us, we also think about AI as engagement. Every seller right now is -- knows AI is changing the way that they should go to market, and they're looking for organizations to step up and provide them with the enablement and the development and help them continue to grow. And so one thing I think we're doing that's pretty cool that I haven't heard any other organization doing right now is we actually have our first go-to-market Hackathon the second half of this year, which I'm sponsoring. And we already have a ton of excitement, a ton of ideas being thrown around, and it's driving great engagement with the team. So I'm really excited about this. We're still early on in this AI native journey, but we're making the investments in the right AI roles. We're making the investment in the tools. We're instrumenting, I believe, the right processes unique to Rubrik, and then we're obviously making a pretty significant investment in the training and development for the field to make sure that we get value out of this then we can then quantify it back to the business. Next slide, Alok. And then our third strategic priority, and maybe build out the first one is just -- we had talked about distribution leverage and our reach. And we'll start with our reach, where this is an area where we made significant investments in that you may not be aware of. I don't know if we've talked about it publicly all that much. but we hired a top-tier transformation leader from Zscaler, who's built out a dedicated team, extending our reach and executive mind share within our organizations even before deals exist. And then they help us foster our ongoing CXO-level relationships and the community there. And so practically, if you want to build it out, you can think of it as going through several reinforcing programs, starting off with the executive access and relationships, which is really our in-house C-level experiences. So you might have seen some things on LinkedIn or some advertisements ranging from some CXO collectives that we put on. We just did one in Rome. We just did one in New York City in Q1. We're doing things like global roundtables, women and technology, executive briefing programs, for example, and we're doing it uniquely to Rubrik. And just a quick stat here, just this team alone through these programs in Q1 alone, we were able to reach over 1,800 C-level and technical decision makers. And I believe Bipul mentioned in the earnings call that he personally met with over 140 of them just in Q1 alone. I don't have the stats from last year, but I can tell you it's a meaningful increase and a big impact. Really, the second area that they're adding value is around the business value economics team, which is helping us build CFO ready business cases around cyber resilience and helping us conduct cyber resilience assessments, which are really not product pitches per se. They're helping you understand a baseline where you sit from your cyber posture relative to some of the industry benchmarks out there. And that's typically helping us early on in the sales cycle, gain mind share higher up in the organizations. And in any given quarter, we have somewhere around 40 of these active engagements running in the field with this team. And then the third area I'll highlight is Rubrik Zero labs, right? So Rubrik Zero Labs is our own bespoke research lab, which provides independent intelligence and credibility. And our most recent research was able to reach over 14.2 million people in the threat newsletter, which we rolled out and launched is now observing over 67,000 subscribers. So this is really connecting Rubrik with being a thought leader in the cyber resilience space and helping our customers understand what's happening broader out there in the environment. And then lastly, they have a community programs, which ranges from our customer advocates and practitioner programs that drive peer-to-peer credibility and foster deeper relationships with our best customers and our best executives that are truly betting on Rubrik for the future. And so this team, I'll just double down on it. They provide tremendous influence for the field, and they provide influence over our pipeline. They help us get higher in accounts. They help us gain mind share with the executives. And it's a very unique program, and it's very difficult for our competitors to go out there and copy. And so this is a key area to help us extend our reach and maybe shifting over to slide, next slide, Alok. We'll hit on the distribution leverage part. So we talked about the third priority being distribution leverage and reach. We just covered reach and I've talked a lot about our direct strategy. Now Alok in the room who's on my team. Could you just talk a little bit about our global partner strategy, which rolls up to you and maybe highlight how we're going about it from an indirect go-to-market standpoint.

Sure. So a big part of my Interact team is to create leverage for our direct sellers. And that leverage comes from our partner ecosystem that includes global systems integrators, our value-added resellers our alliance partners as well as our MSP partners as well. Now Rubric has always been right from day 1, has been partner first and channel-friendly. Since I took over the global partner or [ GRO ], a big part of my strategy has been how do we do a lot more focus. So I want to say that the first part has been identifying partners that have the ability and willingness to grow and scale with us. The second has been how do we go and get top-down alignment from their executives. So this is alignment that they believe that cyber resilience, cyber recovery is the problem worth solving and a strategic bet worth making for their business. So that's alignment, number one. And of course, importantly, alignment #2, is that they believe that rubric is their chosen horse based on our superior tech as well as our [Audio Gap]. Third wheel is I want to see how we go from more transactional to very intentional and meaningful strategic partnerships. And we are seeing this strategy play out where several of our partners are making cyber resilient, cyber recovery Rubrik, part of their top 5, if not their top 3 strategic bets for their business this year. We have several GSIs that are truly committing to Rubrik and have created unique solution offerings powered by Rubrik. Just yesterday, you may have seen this, we launched Project Hourglass where we have six GSI partners that are creating solutions powered by Rubrik to provide agent resilience for cloud code to their customers. With our strategic value-added resellers, we are creating very intentional growth plans. These growth plans include targets and not just bookings targets, we're going 2 levels deep. We're creating pipe gen targets, we are creating activity targets. We are creating very specific execution plans, aligning incentives, aligning investments. And I can tell you that based on our Q1 results, this cohort of partners we're seeing accelerated growth from them and with them in a short span of the last 3 to 4 months. Talking about our [ MSP ] partners. Last year, 1 of our top 10 deals happens to be a large [ MSP ] pre-commit, prebuy commit that they did with us. We are seeing a trend. We're seeing more and more customers that want to consume technology as managed services and especially as some of the sovereign cloud requirements are coming up, we believe that this area is an important growth area for us. With our tech alliances, one of the things that I did -- one of the big changes I made was I essentially said we need to go deeper. So we've invested a lot more technical resources in this area and reiterations. I'll give you an example. We have deep product integration with CrowdStrike. We integrated the CrowdStrike ITD product with our identity resilience product. And the value that we offer to our joint customer here is they are now able to operationalize detection, correlation, along with recovery. Neither of CrowdStrike or Rubrik can solve this end-to-end workflow on our own. And so this joint product integration that we did a deep product integration. It's unique to the two of us. We have existing customers that have gone and adopted this. That is the goal here. So I'll say in summary, the goal here really is, how do we take the strength of the Rubrik platform, our multiproduct platform and combine it with the expertise that all of these different partner ecosystems provide and how do we compound the value that our customers get from Rubrik and from our partners. It really is, I want to say, creating a very nice win-win-win scenario here. It's a win for our joint customers because they get a lot more value, one plus one equal to 11. It's a win for our partner ecosystem because they get another vector for growth, they can go and build a business powered by Rubrik. And it's a win for Rubrik because this particular motion is driving leverage. It's creating leverage for us as well. Jesse, back to you.

All right. Thanks Alok. So if we hit the next slide, that covers the three strategic priorities I just wanted to highlight at the beginning of the presentation. Our multiproduct platform, our go-to-market native motion as selling motion, I should say, as well as our global partner breach as well as distribution. In the last 3 minutes here, I'll just hit on a couple of additional growth levers that are really independent of each other. And we talked about some of them but scaling international growth markets. As you saw earlier, we're experiencing strong international growth is only 32% of our overall allocation and we believe we're just scratching the surface in some countries, and we'll look to opportunistically invest where it makes sense. I mentioned several high-growth industry verticals that provide us an opportunity to evolve our segmentation as we continue to grow at the right time. And then we believe, even though we do very well in global public sector, it still provides us with a very large durable opportunity where we're seeing very good traction, especially in state and local, in certain federal markets, and yet we still have just low single-digit market share. And then Alok just touched upon our multichannel distribution investment, we are just scratching the surface with some of the largest global systems integrators that are out there as well as the overall channel and our alliance partners. And of course, we'll continue to push the needle on how we go to market around this multi-platform, multiproduct, multi-platform as well as the AI native sales motions. So last slide, and I'll just close with maybe why we win consistently and why we're winning at scale. And it really comes down to these five things, right? Cyber resilience, as you've heard, has become a board level topic and the mindset of assumed breach is no longer a concession. It's now a strategy. And the answer is preemptive machine speed recovery and Rubrik's preemptive recovery engine was built for this moment. And we also delivered this, as we've talked a lot about through a true platform that manages your enterprise cloud, unstructured data, SaaS identity. Customers are not looking for cyber resilience to be a set of point solutions that they have to stitch together in their worst moment. And then, of course, the multiproduct platform offering that we talked a lot about where customers are able to get started and grow over time in the platform sort of land, expand and explode. And then from a go-to-market standpoint, I joke with the team that I'm confident that we could actually switch products with our competition, and we could still beat them because of our playbooks, because of the talent we hired and a relentless go-to-market sales culture, which starts with Bipul and permeates the entire organization. But then I promised Aneeka we won't actually switch products with the competition, and we'll just go beat them with our products and our go to market, but we think we have a real advantage there. And then underpinning all of this, of course, is we have an unwavering focus on serving our customers, and that shows up in our NPS, which is well above 80as well as our industry-leading net retention at 120. So with that, we took a little bit more than 20 minutes, but I hope it was valuable and hopefully, I get the opportunity to meet you all the next time that we get together. But thank you for the time.

Thank you. Okay. We are just going to take a handful of questions this time. And then after that, we're going to take a very quick break for lunch. Grab your lunch, come back and we will get started on the panel. So I think to start, we'll wait for the microphone, but Brad, you can go first. Thank you. And actually, if you don't mind, let's get the team up.

Brad Zelnick, Deutsche Bank. And congrats on a great conference. I could think of no better reason to be out here in over 100 degrees in Las Vegas, Nevada. . I think listening to the keynote yesterday, listening to you today, the message of the platform appreciating how every layer builds on the others to unlock value of each other to meet this moment is very intuitive and really, for us, at least relative to others out there, resonates very, very well. I wanted to talk about Annapurna. And Bipul, I know you subscribe to maximal thinking and you're thinking very long term. And we've been talking about Annapurna for a couple of years now. And I don't ask this to be critical that it's taking so long, but more to better understand what goes into it? Because it would seem that the company you're building decades to come, as you say, this -- and in an era where code is becoming more and more of a commodity, help us understand why is it so difficult and why it will serve as a long-term durable competitive moat for Rubrik.

So about 2 years ago, what occurred to us was we have all of the enterprise data plus meta data plus security and user context. And everybody for AI is looking for it. So why can't we make this data available to the enterprise users so that they can actually take advantage of the actual Rubrik data and use this as one of the data infrastructure platforms. And to make this thing easier to adopt, we also built in like a vector search so that we can actually supply vector embeddings directly out of Rubrik. And the benefit that we realized of such a platform was, we reflect the production permissions because we have to restore the production permission. Every other platform that extracts data from production, whether it's data warehousing or [ lake ], have to repermission because they don't have the production permission natively captured. So we said that this is an amazing data plus meta data plus security model built into our platform. So let's make this available to our customers. When we started to having conversation with our customers, what we realized was that most of the folks who are actually doing AI related work in the IT departments used to be a SQL programmers or SQL data collectors. And they are comfortable with the SQL language, but they are not like developers that are actually programming to a new set of APIs. And we didn't have their mind share because they were SQL users. So we kept discovering and talking to them to figure out how do we make this data available and for them to use. And more, we realize that there is a certain set of platforms where they are standardizing on because of the SQL nature. And then the other realization we had was that our unstructured data engine, which actually powers the Rubrik unstructured data platform, has a unique capability to classify and categorize data natively as bit map in the system. And we can take that classification categorization as a catalog and populate, for example, data bricks, [ Unity ] catalog so that they don't have to load the data before they can analyze and figure out what data they want to use as part of the AI work. And there is no dependency on the SQL language and programmability because the mind share is on data rakes not directly on Rubrik. So it was a great way for us to discover this particular part of the market where the needs were highest. There was no economical solution. So it solves for both speed of AI. Because you are quickly getting the metadata and getting started and then you can get the data. And then economics as well because loading all the data and classifying data is very expensive before you figure out you want only 10% or 20% of that data for example, x-rays or [indiscernible]. And so this is part of the market discovery process. And that's why every time we introduce new products, I'm always saying that we have to find product-market fit. Because our job is to not push the ball up to find out how our customers will get maximum value from our platform. And how do we find that use case that unlock it? And we are still early, but we feel like unstructured data gives that opportunity to help solve mission-critical AI problem in a very unique way.

Fatima Boolani from Citi. Jesse, I'll direct this question to you. You were very particular in your commentary about how surgical you are and have been with respect to deploying AI and AI capabilities in the sales process and sales enablement. I was hoping you could give us some feedback or quantitative data points around the outputs you've seen from those investments, right? So anything related to rep tenure, rep ramp time, speed to expansion. Anything additional you can share as it relates to how a lot of these investments that you're going to continue to make are manifesting in productivity gains and what the implications are for how you think about overall go-to-market capacity.

Of course, great question. I would love to talk about that. Look, as I mentioned, we're still in the beginning of the journey, but one of the things we did when we first started was try to identify what are the core skills, what are the core use cases that every [ AE ] needs basically look at what does our best sellers do? And then how do we go kind of replicate them and expand those skills across the field. And what are the areas that if we could do that really well, we could impact. And so you just hit on a couple of them, right? We believe ramp times could potentially come down. I don't want to put a figure on it. But roughly, let's call it somewhere in the 40% to 60% range is ramping to our ramp sellers. If we can shorten that time to ramp, it's going to show up meaningfully in our productivity and our ability to deliver more. I think the second area that we're seeing some early traction on is AEs being able to work more deals. And so we call it deal throughput, but instead of maybe only being able to work on four opportunities in a given quarter, can we actually expand that. And that gives us the opportunity to scale faster. And then the third area, and we actually rolled this out and we're seeing early traction is if you think about what a seller does before they even step into the first meeting? We built a product platform. It's not even deployed as a scale. We actually built our own platform, we call it [ Kobi ]. And that's really helping do what was taking reps mainly 2 to 3 days per account. And we've condensed it down where they can get very surgical research and a very surgical point of view that they can then go engage with the channel or in a partner community, that they can then go take into their first meeting to show up with a perspective on where Rubrik can help that particular customer. And so it's basically aggregating a bunch of information and then giving them the ability to create messaging off of it and create targeted persona-based messaging, I should say, and then be able to pull together their point of view. So that we're showing up and we're differentiating ourselves against other sellers that just show up with a generic pitch. So those are some of the areas. I think the last area I'll just highlight is, people talk about it oftentimes as an efficiency or productivity lever. It's also a revenue lever where if we get this right, and we're in the process of building some things right now, we think it gives us a tremendous opportunity to go drive our cross-sell and our upsell motions across that platform. By helping our sellers be able to land the right product, the right expansion play. We've got five or six sales motions I mentioned in sales place, be able to land that at the right time to the right person. And if we get that right, we'll be able to start stacking those S curves that people talked about earlier, even better. Does that answer your question?

If I may add -- just add one piece to that. So specifically on the sales engineering side. we actually deployed a tool to help with RFPs. As you can imagine, sales engineers spend a lot of time answering RFPs. And some of these RFPs can go tens of pages. So just imagine, you have hundreds of SEs with different levels of tenure, different levels of English language. Imagine being able to feed all of your previously filled RFPs into a Gen AI tool. And now you feed a new RFP and within second and minutes, this tool is giving you answers. It's taking into account all the information that we have. We also worked with recency because sometimes the answer to a particular question might be no, from 8 years back, but we just released something a few days back. And so we have all of that capability built in. So two things that are happening here. One is, of course, efficiency gains. So particularly multiple is [Audio Gap] efficiency gains where they're able to go and respond to RFPs much faster versus going and looking at a lot of different sources of data. But the second is also the quality of responses has gone up as well. So just giving you one particular use case that I want to say, one of our initial use cases on the sales engineering side. But then -- so both Jesse and myself, many of us are very passionate about this area.

Thanks for asking that question. Okay. Well, thank you for the questions, and thank you, team. We're going to have additional Q&A time at the end of the day. But at this point, we'll wrap it up here for the first half. We're going to take a quick 5-minute break to grab lunch. And then please come back. We'll do a working lunch and we have a great customer panel with our CMO, [ Jon Co ], and then we'll go into the partner panel with Alok. So 10 minutes, we'll be back here. Thank you. And for the webcast, we'll be offline until about 1:00 p.m. Pacific. Thank you. [Break]

Thank you, everyone. Hopefully, you got some lunch. Welcome back, everyone take a seat. Right now, we're going to kick it off with an awesome customer panel, and I will pass it over to [ Jon Co ], our Chief Marketing Officer.

Thank you, Melissa. It's great to be here. Thank you all for coming to Investor Day. I've got a distinguished panel of folks that have experience with [ BrueBrick ] customers. I'd like to allow them to introduce themselves. So [ Said ], why don't you kick us off?

I'm Said. I'm the Chief Information Security Officer for a company called [ Simpler ]. They focus on health care technology.

I'm [ TJ Bondarenko ], I head up the global IT infrastructure and operations team at [ WESCO ].

[ Nick Rose ], with [ Genesis Energy ], and I am the VP of Information Technology.

Let's actually get a little bit of background information from you guys. I think the audience would love to know how you got started with Rubrik? What kind of made you initially start to rethink your data security strategy and how that relationship has developed over time. Said would you like to kick this off?

Sure. So as I said, simpler focuses on health care technology. We sell our own platform. We have 50 SaaS applications used by 9 out of 10 hospitals in the U.S., heavily regulated, we get audited by customers all the time. And if we go down, it will be changed health care on steroid. So for us to make sure that we are protecting our data and/or having access to our data in case of a breach is critical and was critical in our initiative to engage Rubrik. We started with Rubrik backup on-prem. And that relationship evolved to, including Rubrik cloud identity resiliency, M365, DSPM and enterprise security.

Yes. So our journey slightly different. If you rewind about 6 years ago, our company went through one of the largest acquisitions that we've ever done. Overnight, it effectively doubled the size of our organization. And as a result, we had to do a tech stack rationalization. And I'd say, historically, we kind of considered backup and recovery as more of a means to keep our operational systems running. But really, we had to start to think a little bit differently as a larger company about cyber resiliency as a strategy. And so when we were evaluating our backup in recovery technologies. There were some pretty vast differences in terms of the approach that was taken by the various vendors to how that data protection occurred and then would that enabled us to be able to do in terms of building out our cyber resilience program. And so when we did that evaluation, we felt like Rubrik had the best set of capabilities. And so that's where we started rationalizing our tech stack and using it in our environment across the board, and then we slowly [Audio Gap].

All right. Let's keep it going. My mission is to continue to increase the monetizable products on the Rubrik platform. That's my mission. And it's also to mitigate the risk of the innovator's dilemma. Quick introduction. My name is Mike [ Tornincasa ], I'm the Chief Business Officer. I joined this company. I joined Bipul and Arvind 12 years ago, and first year, 6 months before the first product was released and I've worn a bunch of hats since I've been here, first AE, first sales leader. I led the transition from backup and recovery to cyber resilience. And the role that I have now is probably my most favorite and the most fun. I'm continually launching the new products. I'm doing perpetual 0 to 1 or 0 to maybe $100 million. And it's really fun. I really enjoy it. There's a lot of entrepreneurial energy still in the company from when I joined to paint the picture for you. Couple of bean bags, 2,000 employees and a ping-pong table. That energy lives on within Rubrik, and I think that's how we continue to stay on the edge of what's next. So I have 2 missions for this next 15 minutes. I want to introduce you to the team that I lead, the lateral team as Bipul calls it, we call it Rubrik X. And I'll speak specifically to one of our current missions, which is the identity mission. And then I'll introduce Dev Rishi, our GM of AI to speak directly to Rubrik Agent Cloud. We have a bunch of irons in the fire within my group, but obviously, those are 2 that are very exciting, and I think that you'll be interested to learn more details about. So let's get right into it. Most companies that scale die because they're successful. They focus on the product that they have, they scale it, they optimize for it. They extract as much revenue from it, but they miss the adjacent opportunities or the next wave of innovation that ends up unraveling them. We built Rubrik X specifically to solve for that. So within Rubrik, we have a structural advantage in that we have 2 teams. We have a core team on the go-to-market side led by Jesse and Alok that drive and scale the mature products. And then we have a lateral team that stacks the S curves. I lead that lateral team. It's a structural solution to the innovator's dilemma, and it's working. This team by design is small. It's a small entrepreneurial team with a ton of tenure, and that ton of tenure gives us trust and ability to execute within the organization. We also have the ability to experiment and find product market fit. The way that we do it, you may be interested to know is that we put together a pod at the beginning with a point of view, representation from product, from engineering and from go-to-market, and we bring it to our customers. We define on the front end, a power curve, a bookings trajectory. We have an idea at the beginning of what the potential of this product is, and we hold this team accountable to that outcome. So this is a focused team that's executing with performance orientation outside of our core. If I had to sum it up, they define the win recipe. They show the path to the rest of the organization of the opportunity, and then we integrate it directly into the core team to scale or create a product-led sales organization that has their own quota that takes that product to scale. And it's not by accident that we've been commercially successful with more than 6 new products over the last 10 years. It's a recognition that there is a recipe. It involves the right set of capabilities out of the gate, a vision and road map that aligns to where the market is going, 1 or 2 steps ahead of our customers. and the GTM tactics that allow us to win. Every time that we've done this, we had to face a new buyer, a new set of competitors, a new set of objections, and we had to figure it out. So you can imagine when I joined, nobody knows who Rubrik is, we have this whiz bang data center backup thing. We're knocking on a bunch of doors, shaking a bunch of trees. We have success. Then the cloud is now where workloads are running. It's no longer test and dev. Production applications are running in the cloud. Rubrik's opportunity is support our capabilities to the cloud. But our sellers don't know cloud people. They don't know what they want. We don't know what their priorities are. So we had to focus on this specifically. And it took us a couple of years to figure it out, but we did. We crossed the $100 million in just under 5 years with the cloud product line. We did the same thing with SaaS, Microsoft 365 was becoming a critical workload. You heard that from some folks. And we did this faster. It only gears across $100 million. I know these 2 products today are $400 million of Rubrik's total ARR. So it's not just 0 to $100 million. It's 0 to $100 million, get the flywheel going, handed to the core and the core scales. We did it again with the enterprise applications for data security. We had a couple of product ideas that would hand tie recovery. We put those into a bundle. We crossed $100 million in 2.5 years. This product line in and of itself is north of $400 million for the company today, total ARR. Maybe most exciting is identity. Most exciting because it's outside of that core data vector and it's a whole another vector. We've successfully transitioned into the CISO's budget. We have our hand in the CISO's cooking jar. And in just over 4 quarters, we crossed $50 million in ARR. As a company, over the last 5 years, we've been growing at 50% CAGR. The products that come through Rubrik X have been growing at 100% CAGR. And today, the products that have come through Rubrik X are more than 40% of the company's ARR. I don't know of another company that at this scale has been able to organically stay on the leading edge of innovation, let alone build a brand-new product from scratch for a brand-new budgeted line item with identity. So there's 2 missions that define what Rubrik X is building next, identity and AI. I want to dive into identity with some detail, and then I'll introduce Dev to take AI. Identity is the #1 director. Yes, you guys have heard this a bunch of times. What does that mean. 90% of organizations have had an attack on identity or via identity in the last 12 months. More than 50% in the last 24 months have had active directory compromised. There's a huge opportunity here. We have $10 billion as of TAM. That's a bottoms-up number based solely on human identities. You guys are probably well aware, there's an explosion of nonhuman identities, service accounts, agents. We didn't put that into the calculation. And we think that there's a category here to define as not dissimilar to the category that we already defined. We have data resilience, cyber resilience, why not identity resilience. And what could identity resilience mean? Well, if it follows the same format, it's easy for our sellers to first to prevent, easier for our buyers to consume. And for us on data, first was recovery because if you can't recover, you're not in business and then we build left into posture, what things can I do, some of the panelists were just saying to be proactive. The same concept applies to identity, and so we're building the identity resilience solution. Fully complementary, network effect will be illustrated in the forthcoming slides, but also can land by itself as a lower friction door opener for our sales team, where maybe the customer is not ready to replace us in the data center or in the cloud. Let me speak to the problem statement here. The modern attacker has figured things out. Locking data causes more damage than stealing it. Yes. theft is bad, breach is bad. But if you can't run your business operations, it's not just painful, it's existential. We've been recovering data and applications for the last decade. We do it fast, we do it clean and trusted by our customers. What's new is the identity providers being compromised. And even if we can quickly in clean restore data and applications, if the users can't authenticate for those applications, it's for nothing. This is the challenge. If you look at these elongated recovery times from the cyber attacks, the identity provider recovery is measured in days and weeks itself. It was a logical extension for us to focus on this because we were on the front of recovering our customers' data. And we were seeing that, that was useless if they couldn't get to the application. So we built a solution for them. This is the identity resilience solution that we built. We combined identity and data now in one platform, and have complete cyber resilience messaging to our CIOs and CISOs that is resonating exceedingly well. So if you put that all together, this is the reason why this product is growing so quickly. It's a message that our core team can articulate, that our buyer inherently understands. It feels very natural as part of this platform. And it's a familiar playbook for us. We start with recovery. We add posture, and we get results. Last year, a customer of ours that's classified as critical infrastructure, suffered a cyber attack by a nation state that compromised their active directory environment. Rubrik was able to recover their IDP in 3 hours and 24 minutes. Microsoft's own best practices, which is more than 100 steps frequently requiring handholding from their consultants is measured in days and weeks. This is the type of impact of this problem of this product. And the problem is very painful, acute, well understood and easily funded directly from the CISO's budget. So we see an opportunity here, and we're doubling down. transitioning from recovery to resilience is what we're doing right now. Roll forward we announced yesterday, quickly on this, very exciting to me personally and to the market. This is the idea that you might have an adversary in your environment, masquerading as a trusted employee, you want to evict them, but you don't know how. Rubrik can tell you who they are, where they are, rebuild Active Directory from before they got there, play all the sanction changes back so you don't lose the data that happened before they arrive to that day. Nothing in the market like this. The customers that we've messaged is too are super excited about it. It will only be available with the resilience SKU, which is an uplift SKU. CrowdStrike is super excited about it. They don't have an answer for their customers, tons of upside in this. And I want to just mention the partnership and complementary nature of the CrowdStrike relationship, the Microsoft relationship and Okta. Okta is one of the trusted IDPs, and we built capability for them. Stacking users. I think guiding that we've been able to do it over and over again with cloud and SaaS and security and now identity. Even within identity, you start to see how these opportunities compound. We're stacking S curves even within this 1 product line. Case in point 2017, we launched our first Active Directory solution. Very basic, we included it with the core product, but we seeded the market with it. We got close to customers and we learned. Last year, we launched the Active Directory force recovery product, which automated the restoration of complex environments, and we charged for it and customers willingly paid. And now this year, we've launched the resilience product, which brings the posture in hardening capability and the roll forward capability to market. And we see a very large opportunity. But here's what we didn't expect. Identity is making our entire platform stronger, a couple of stats. Last quarter, 52% of new M365 logos included the identity product, nearly doubling our ASP. 40% of all M365 deals included the identity uplift. And those deals had a higher win rate, 8% higher over deals that didn't include identity. Every mission that this team has taken on had a different buyer, different set of competitors, different objections, we figured it out each time. Identity is just an example. AI is next on the conveyor belt. No one better to tell you why we work for AI than our GM of AI, Dev Rishi.

Thanks, Mike, for the introduction and -- my name is Dev Rishi. I was one of the cofounders and CEO of Predibase. Now I work as GM for AI. I started the company in 2021, that was all about being a leading-edge AI infrastructure provider. Predibase was the core backbone that really, I think, deployed production small language models for a number of our trusted customers, pointing everywhere from smaller tech forward, digital natives to larger enterprises as well. What we really had as our core competency was an AI infrastructure platform that was optimized for organizations, teaming models on their data and being able to deploy them efficiently and at high scale. We joined forces with Rubrik via an acquisition at the end of last summer. And the key motivation was to be able to take our core platform that was literally accelerating AI. We helped the organizations get faster model than they would have been able to otherwise. With Rubrik's core assets in data and identity to be able to secure and accelerate the world's AI transformation. Now when you join forces with a new company as a founder, you actually sort of underwrite what your own impression is of what the parent company's mission is. And as I think about Rubrik, I really like to slide that I was able to share earlier, which is that Rubrik is a company that's helped organizations to be able to navigate and enterprises navigate different waves of transformation. Starting with automation transformation. We're making a shift from tape attaching a little bit more digital. And the digital transformation obviously led into the rise of cloud, where we decided to launch the Rubrik Security Cloud to be able to target cyber as the #1 use case that organizations needed to be able to be protected again from our standpoint. I think coming up now, we feel convicted that the next enterprise transformation with is in AI, and that AI potentially is operating at a speed that was faster than the other transformations, but also has a large amount of headroom in terms of the productivity gains that we anticipate. But each of the different transformations has brought in its own amplification of risk. Visual cyber with the AI transformation, the risks that we see is with AI and AI agents, which we really define as models that get access to your internal IT infrastructure and have the potential to be able to do an order of magnitude more damage at 1/10th of the time. It's no surprise that I think as organizations are actually thinking about their AI transformation, the #1 blocker that we've seen towards their ability to production AI is that they have a governance guardrails and compliance solutions in place. At Predibase, we focused on a number of different solution vectors. We have focused on latency, cost, but as soon as I joined forces with Rubrik, one of the things that I did was I spoke to over 200 customers in my first 5 months. And the most consistent theme was models are getting quite good. The agent harnesses are actually not that bad themselves either. We had a lot of orchestration frameworks, everybody is trying to sell me a platform to make it easy to build agents. But the hard unsolved problem is actually how do I manage the risk around what my agentic deployments can do. And its surprising I think that this is the case. From our first hand experience, building and deploying agents at Rubrik, I think we've realized that conventional security stacks wasn't really built to be able to secure and govern agents. You heard in the panel earlier that agents have spiraled cost platform. I had agents on my end point running the cloud, managed platforms inside of SaaS applications and others. In my opinion, agents tend to be over privileged by default, and they operate on LLMs that are nondeterministic. And finally, they can access and do work at super human speed. So we now have a real compounding of variables where I'm giving a model that's based on something probabilistic rather than deterministic, access to my core IT production infrastructure because I need it to drive results but it can actually operate outside of the guardrails that I might have set up and operates at superhuman speed. I think it's no surprise then that we see a number of these instances make headlines, whether it's coding agents that go rogue and delete production databases or e-mail servers, or the number of 71 outages we've seen from leading hyperscalers all the way down to -- I think it becomes very difficult for an organization to feel comfortable in truly unlocking AI for their company today. So what do organizations find themselves needing to be able to choose between. I find that most enterprises we speak to are in a few different modes. The first is, Walt, we'll do security through blocking. I know that my AI agent will never leak sensitive data from Salesforce or leak source code because I've never given an access to Salesforce or my GitHub. Ultimately, I think that this is a relatively secure mechanism, but it's going to kill the ROI of AI because agents need access to your internal enterprise infrastructure in order to be able to drive the productivity gains we're all looking to underwrite. So the second thing that organization is trying to do, we try and write static rules. So we try and write a number of if then conditions to be able to try and guard rail what an agent may or may not be able to do. And so good one large -- financial services company in New York, who mentioned that their current solution towards agentic security and governance are in offshore team writing rules around every type of scenario that may go wrong. In our experience, you cannot secure and govern dynamic AI agents with static rules. At best, they capture a very small percentage of the scenarios, they're notoriously good at circumventing these rules. And the final thing that I think people often times have a level of comfort in is going human in the loop in the process. Human in the loop allows us to be able to exercise some semantic judgment. I can understand the intent of what the AI agent is doing. And I can finally make a judgment on whether or not going allow or deny that action. But the issue with human in the loop is not 24/7 scalable. So agents are operating at machine speed, the way that we actually secure and govern those agents have to operate at machine speed as well. These sets of challenges, I think have led to the fact that most prices that I speak to are currently and actively looking for solutions today. Very few feel like their existing stack have them covered as they start to roll out more dynamic agents, whether that's something like Copilot Studio or Claude Code or Kodak. What we see is that organizations tell us that they're interested in a comprehensive agent platform that can provide them the key tenets that they need in order to feel comfortable that they're unleashing AI and not in undue amount of risk. So earlier this year, we launched the Rubrik Agent Cloud. And the Rubrik Agent Cloud is our platform to help organizations securely deploy AI agents at scale and feel comfortable to be able to integrate into the existing IT infrastructure they need to get the ROI that their boards are demanding. There's 3 key tenets towards the Rubrik Agent Cloud. The first thing that every organization needs is continuous monitoring and observability. You need to plug in to the agent run-times where they exist and be able to scan that environment to show you what agents are out there, what kind of access do those agents have and what's the risk profile for those agents. But I often describe monitoring and observability as this base layer of the cake. It's something that is decent to get started, it's a prerequisite that it's not necessarily super what you want when it comes to risk controls. So the next thing that we think about is dynamic run-time security with our own AI to secure and govern AI approach, so called stage. I'm going to dig into this in just a minute. But really, the core intuition that we found was that in order to be able to secure and govern AI, we needed to use models and small language models specifically ourselves, to be able to intersect every prompt, response and tool call an agent might be making and ensure that it adheres to the organization's policies. So monitoring will give you the observability. SAGE will give you the run-time controls you need in order to make sure agents are staying on their guardrails. And then finally, Rubrik has always had a mentality -- breach. Just to say that eventually, something will go wrong, and we need to make sure that the business is resilient when this happens. In the AI world, we think about Agent Rewind as the core feature that enables AI resilience. The ability to undo a disruptive action an agent makes by tying our observability with our core understanding of data protection and backup snapshots. And say, if an agent did take a destructive action, we can take the observed action and find the exact healthy snapshot that exists and allow to easy orchestrated recovery from that source. These course have the capabilities around monitoring security with SAGE and the ability to rewind those actions have been really instrumental in Rubrik agent hubs, initial release and the success that we've been able to see internally. I think there's 2 things that really set Rubrik Agent Cloud apart from the other solutions that have started to make their way into the market. One of them is the ability to do Agent Rewind. And second is our own agent for agentic security that we call SAGE. I mentioned SAGE earlier when we think about SAGE as a semantic AI governance engine. What SAGE really does is it acts almost like the air traffic controller over all of your agentic traffic. It hooks into your existing agent run times, whether that's a Claude Code session or Microsoft Copilot Studio agent and starts to introspect every response, every tool call that those agents and AI systems are making. And then we run our own proprietary small language model judge over those instances to be able to adjudicate whether or not to allow or deny given action. SAGE comes with its own AI security research built out of the box based on our experience doing cyber at Rubrik. And it's enriched with the data and identity context that Rubrik has for each of our enterprise customers. When I talk about data and identity context, what I'm thinking about is when it comes to data, where does sensitive data live inside of my organization. When it comes towards identity, who should have access towards these different styles of data? And what are they going to do compromise when I might be thinking of? Ultimately, our view is that the organization that does the best job of securing and governing AI will use AI themselves. And the companies that build the best AI will have the best infrastructure to be able to deploy those models and the best context for being able to feed into those models. And the concept we feed in is existing data and identity context inside of the organization as well as the organization's own policies that they can define to customize directly from their own call documents or through a natural language interface to customize SAGE to what they need inside of their company. SAGE is built and deployed on top of the Predibase platform, which is instrumental because we need to be able to do this type of judgment at a very low space and high accuracy way. So what we have found with SAGE is that we can actually deploy our own custom run-time guardrails at a faster, lower latency and maintain higher accuracy than a number of the leading frontier models that we tested and evaluated. That small language model infrastructure, coupled with our context that we understand for the data and identity inside of an organization helps to reinforce this is a onetime security solution. And our customers have already seen this become valuable first party. The Rubrik Agent Cloud is our newest products and offering, where we've started to see some great success from the number of the customers we've deployed to, including, for example, a European health care IT provider that needed to be able to start to enable their AI initiatives, which involves building agents inside Microsoft Copilot and also Copilot Studio, but has to have the protections for sensitive data and enforce compliance guardrails that they had as a regulated industry inside of EMEA. They viewed and acquired rack as a solution because it was essentially their AI enabler. They could not go to production without a solution like a Rubrik Agent Cloud in place to make sure all their agent interactions were secured and governed. And we're actually fortunate to have a lot of first-party data on this ourselves, where we've become a relatively large Claude Code shop. You saw the Anthropic on stage yesterday as well. And we have seen Rubrik Agent Cloud be instrumental in securing and governing our own rollout of this technology. As a first party user of Claude Code myself, I've got to tell you the technology is incredible and quite scary in terms of what it can do. And what we've been able to do with Rubrik Agent Cloud is deployed and protect over 1,000 developers, multiple trillions of tokens processed in just a handful of months and enforce that run-time to ensure everything from disruptive actions to data ex-filtrations to circumventing of guardrails can be protected and prevented through the Rubrik Agent Cloud. And this has given us confidence that every organization that is starting to actually adopt the higher agency agents like these are going to need a solution like ours in order to be able to mitigate the downside risk. We've been pleased with the initial momentum that we've seen since we went to you at the end of February. And most of our customers think about us as a solution that helps them get from a proof of concept that is heavily sandboxed in one environment and low risk to natural production deployment of AI. And because I'm a product person, what I'd love to be able to do is actually to spend a few minutes showing you what the product can look like in action and how it looks to be able to secure and govern deployments like Claude Code for our customers. So this is the Rubrik Agent Cloud interface. As soon as I go in, I'll log in. And the first thing that we see inside of the dashboard is we automatically scan the different environments where agents might be deployed, whether that's end points in the cloud platform and start populating agent inventory that shows you where the alerts and violations and where the highest risk agents that I might see inside of my organization. One of the things our customers told us is that they don't always know all the instances that they need to investigate. So we also prioritize insights about what kind of vulnerabilities they might have, like this instance where Claude Code deleted a repository on GitHub. I can click in to invest and insight further. And once I do so, the Rubrik Agent Cloud actually populates and will be called an agent map. This is a list of Claude Code but also all of the different applications and tools that it has access to like GitHub and MTM. It can even highlight to me where the specific problematic action happens. So in this specific example, I have a developer running Claude Code and we thought that what ended up happening was there was a disruptive tool and a shell command. I can dig in and get a full audit trail of what this agent was actually doing up to the point that this action was taken. So what I saw on this instance was Claude Code was trying to commit a credential file, leak some credentials internally. But that was stopped by one of our onetime guardrails. But then it moves to the clean up stuff and decided to do a GH repo delete. It's essentially actually delete the entire repository inside of my codebase. These are the kind of validated permissions that are actually not uncommon for coding agents to have because they use the delegated identities of the underlying user and developer. I can introspect and understand what was the command that was actually written here. I can see the tractability of the steps that led to this. But when I see a destructive command like this, my immediate intuition is I want to do 2 things. The first is, I want the ability to hit control Z. I want to undo this action as quickly as possible and bring back the production system. And the second thing I want to be able to do is I want to make sure something like this never happens again. I can help with though. So the first thing I did was I hit Rewind. And with Rewind, we automatically come up with a recommended Rewind plan, which will show you the where to restore these actual assets from using the pre healthy backup and our AI agent observability. You can always edit the Rewind plan, if you want. But in many cases, we actually find that the Rewind plan automatically generated tons of the right level of intelligence, and you can execute it then directly in one click. So my Rewind was successfully completed, and that means my repository is now back online, the full commit history is there, but I want to make sure this doesn't happen again. So Rubrik can also recommend a run-time policy to block all coding agents from running destructive shell command like GitHub. This is an AI-generated policy that I can actually click and review, and we'll show you what this policy directly does. We'll show you the scope what the goals and instructions are and key definitions. And if I want, I can even see and ask for it to show me reference examples where this policy would trigger or not. I can edit this behavior, if I like. I can see things like if the developer is running something like get reset hard, which is more disruptive force command, then that would be a violation. So if I was just checking the status, that's totally fine and safe. I can review key definitions and this is something customers love. They can actually edit the way that our run-time policy enforcements are going to work directly in natural language. They can provide their own context into the system about what they want to be able to enforce. And when I click save, I can publish my policy in either a monitor mode, which will give me an alert for a violation anytime that it's actually triggered. Or I can run it also directly in a blocking mode, where we give policies actual peak to be able to stop the type of disruptive actions at run-time. So this is my instance of Claude Code. When I use Claude Code, for example, I might start typing in something like archive to old experimental repo because I want to be able to do a cleanup step. And so this is the type of thing where I was a little big than my intent. Claude might start to go in and decide what it needs to do is to delete a repository. But because I just configured that onetime active guardrail, it's actually blocked here by the Rubrik Agent Cloud. We have the run-time hook to be able to secure and govern agents like Claude Code directly inside of their interfaces. We not only tell you what was the reason that we've locked it, we can tell you the policy of the severity and give you the ability to edit more in the future as well. So that's the Rubrik Agent Cloud really in a nutshell. The way we think about it is the lack of governance guardrail compliance and risk is the #1 blocker towards enterprise AI adoption today. In order to be able to actually securely govern AI agents, you need to be able to use AI and small language models at one time yourself. And that the organization that are going to build the best version of these models will have a combination of performance, small model infrastructure and the best-in-class context to be able to drive it. And so I've been really happy at the progress that I think our team and our organization has made in the deployment of Rubrik Agent Cloud. I'm very excited to be able to see where this goes next as we help organizations secure their AI transformation. Thank you very much, everyone.

Okay. Great. Well, thank you, Dev. Thank you, everyone. We're going to take a 5-minute break, and then we'll go into Kiran's section and then we'll do Q&A. So let's return at 1:45 Pacific, and we will finish up. Thank you. [Break]

So good afternoon, everybody. Nice job making it this far. This is the last session, and then we'll take a few minutes for Q&A. Thank you for your patience. I know we're running a few minutes late, but we should be done in the next 15 to 20 minutes with this session and then maybe a little bit Q&A to wrap up, and some of us will stick around to take further questions off-line as well. Thank you for the investment in time and making the trip here for those in person, and hello everybody online as well. I think I know most folks in the room and several people online, but by way of introduction, Kiran Choudary, CFO at Rubrik, been at the company for almost 8 years. And hoping the sessions you had in the morning, the last 3, 3.5 hours have been very helpful in understanding our opportunity, thinking about through our go-to-market and product strategy, our overall TAM. I'll spend a few minutes here giving a financial update. But really, my goal is to connect what you heard in the morning thus far to the financial model in time as drivers for both durable growth as well as improving profitability towards our long-term model. So I'll cover 4 areas. The first, we look back over the past few years, including us as a public company to talk to our track record of execution. Second, as you have heard, we operate in 3 large markets, data, identity and AI. And we are innovating relentlessly in it. And the end result of this is multiple product categories at scale, and I'll share some data and context around that. Next, we have a true multiproduct platform. And when you combine it with our unique GTM approach, you heard about the forward motion with the core team as well as from Mike about the lateral motion with Rubrik X. And together, they create a flywheel, which really results in rapid customer acquisition and growth, and I'll give you some data around that as well. We'll give you some context. Finally, I'll wrap it up here with a little deeper look at the P&L. We are coming towards the end of a very successful cloud transformation and I want to understand and explain to you a few trends around that and then really talk a little bit about margin drivers and long-term margin. So with that, we reported our ninth quarter as a public company last week, Q1 fiscal '27, which finished end of April, and these are the metrics we shared. Just as a reminder, we crossed $1.5 billion in subscription ARR, which is our core top line metric, growing well at scale over 30%. We continue to benefit from what we believe is best-in-class net new ARR of 120%, almost 3,000 customers at scale, which we define as $100,000 plus and strong gross margins as well as cash flow. If you look back in time or a few years, and I've known many of you all from before the -- we went public, and including the time we were public, we have grown well at scale. And we got through $1 billion at strong growth rate, now $1.5 billion at over 30%, and our guidance will imply strong growth ahead. At the same time, we have improved operating leverage in the business as well. It's not growth at all costs. If you look at this chart here, which shows subscription ARR contribution margin, which is a good metric to understand our operating leverage as we go through the cloud transformation. We have made significant improvements over the years, turning positive in the year of the IPO and then continue to improve. And our guidance, the last column will indicate that we have further improvement this year. And last but not the least, in terms of cash flow, again, if you look back at the history from where we started reporting these numbers, significant progress over the years, turning cash flow positive the year we went public and then guiding this year to almost $300 million in cash flow. Hopefully, our 9 quarters as a public company, and looking at our results, you've seen that we have grown consistently at scale, improved profitability and raised guidance in each of the 9 quarters. And hopefully, that's built trust and you see a management team which can deliver. Moving on to the next topic I have is you heard about earlier today, the 3 large markets we operate in. It's not just sufficient being in large markets. You have to do more than that to build successful businesses in these. You have to allocate capital thoughtfully across these markets, have a rigorous prioritization process, and then, you have to relentlessly execute both in terms of R&D as well as go-to-market to build meaningful businesses there. And that's just what we have done. So going back in time, just to give you a little product history for Rubrik. We started the business in -- really became operational in 2014, and we started in the enterprise products area. That's where the market was at that time. We quickly progressed to cloud and SaaS products and then built a whole suite of data security applications around it, which really became our data pillar. Next, we realized the importance of identity information and the importance of connecting data with identity and that really resulted in creating an identity business, which was the second pillar. And then more recently, we have made a foray into the AI market with Agentx Cyber Resilience. And together, these 3 markets you heard today are over $125 billion combined and growing nicely. And our strong execution, capital allocation in these markets has resulted in really the creation of multiple product businesses at scale. So out here in this chart, you can see how we have split up the $1.5 billion roughly in scale we delivered in the last reported quarter. Obviously, our history, we started in enterprise products, that's our largest business, $650 million plus. Then, we launched cloud, SaaS products. That's $250 million and $150 million, respectively. Our data security applications, which sits on top of our enterprise cloud and SaaS products, it's $400 million plus. And then Identity, our business, which we started about a year or so back, is $50 million plus as we reported in Q1. And then AI is obviously in a much earlier stage. But when you look at it, you see a very diversified business. And these are just product categories. We have multiple products within these each. In Enterprise, for example, you can second VMware, SQL Server, Oracle and others. In Cloud, it's the big 3 clouds and more recently, Oracle as well. And then SaaS, M365, Jira and Salesforce. So each of these product categories have a lot of depth within them as well. And then each of these product categories are now at scale. Now, this is looking back at the business we have built over the last 12 years, really 10 years of selling. But if you look at the product mix, as of the most recently reported quarter and you break it up by net new ARR, 80% of our net new ARR is approximately outside the enterprise products area, which is really the data security applications, cloud, SaaS and identity, just to give you a sense of the most recent mix. Moving on now. I talked about markets, talked about innovation and our product businesses, but let's touch upon customer adoption. What you have seen over the day, hopefully, is a true product platform, which when you combine with the GTM machine we have, which is very unique in terms of how do we preserve innovation with Rubrik X and the core sales team to scale, you come up with really a very unique land-and-expand flywheel model in this market. Bipul touched upon this, so I won't go into detail, but it starts with one of the different product areas you can start out with and data naturally grows. You add more workloads, you add more applications, security, AI identity, and this flywheel continues. But what this really drives is a very attractive best-in-class 120% net NRR rate, which is really strong for a company which really says subscription software and not really a consumption model. What has that resulted in? It leads to rapid customer acquisition at scale. You can see at $100,000-plus ARR customer count, which we report quarterly. It's grown about a 40% CAGR over the years, and it's almost 3,000 as of Q1. But we are still early. We are only in 40% or so of the Fortune 500, a little over 1/4 of the Global 2000. There's a lot of opportunity to sell into these accounts with the product portfolio we have, plus gain new accounts. And we are increasingly working with our partners as well as leveraging our direct sales team to open these accounts. Next, Jesse talked quite a bit about the diversity of our business. What we do truly matters, but also it's very broadly applicable our platform. Any business or government entity or institution, which has data of any significance can be a Rubrik customer. Hence, you see this mix of diversity by industry. We talked about a few of them earlier. Financials is big for us, so is energy, health care and a few others. And we have verticalized in some of these areas, which -- because they have -- they require specific product capabilities, compliance as well as go-to-market motions, and we'll continue to verticalize where necessary to drive further growth in these areas. Next, international has done really well for us, but still early. If you look at some of the bigger scale cybersecurity companies, close to half their business in international. So a lot of room to grow for us there. Let me talk a little bit about product adoption. You heard earlier, I shared with you a few product stats, the different product categories we have at scale. But let's talk about how customers are adopting these products. If you go back in time, fiscal '21, about 5 years back in this data set, about 2/3 of our customers start with Rubrik at that time in one product category. Many of them were in enterprise, probably some cloud as well as SaaS. And the rest, the smaller 1/3 was multiple products. Let's progress forward to our last fiscal year, which we finished about 5 months back. And you can see based on the bar chart on the right, over 3/4 of our business is multiproduct in terms of adoption, multiproduct category, just to make that clear, because each of these categories have multiple applications and products. And close to half have 3 or more product categories and over 20% has 4 or more product categories. So there's quite a bit of evolution over the past 5 years in terms of the depth of product, the breadth of the platform, which has been acquired by our customers successfully. And this is for existing customers, but even in new customers, if you look at this stat, 70% plus of our new customers are landing in 2 or more product categories. And what this is doing is increasing the ASPs that land. I think we had shared this stat with you at the time of the IPO. But right now, if you look at it as of this most recent quarter, the land ASP has more than doubled in about 8 quarters or so. So we are landing bigger. We're also acquiring more customers. Ultimately, all of these trends have resulted in growing our customers successfully with us. So we're literally raising the bar for customers to be a top Rubrik, top X customer. If you look at the bar chart on the left, that's the top 50 cohort. 5 years back to be in that cohort, you had to be at $340,000 in spend. Today, it has $2.5 million plus in ARR, almost 8x growth. And similarly, you see growth in the 250 and 500 as well, 8 to 9x bigger. And this is the result of building a true product platform and having a very differentiated go-to-market motion. Hopefully, the last 2 sections have provided you with your sense of our overall market opportunity, product strategy and the innovation we are doing on the customer journey front as well. We are a true multiproduct platform in 3 large markets, and our GTM approach with the combination of the core sales team, the forward motion as well as Rubrik X, which is a lateral motion is very unique in supporting this growth for years to come. With that background, let me now look to wrap up here. We'll go into the last topic I wanted to cover, which is a deeper look at the P&L. And I'll start out to give you an update on where we are in the cloud transformation, which we started a few years back. So if you'll recall, especially folks who have known us for some time, about 3 years back, we made a very strategic decision. At that time, it was 5 years in the making, but we launched Rubrik Security Cloud, which really provided our customers with true data portability. It basically moved the brains of Rubrik into the cloud, what we call Rubrik Security Cloud, it allows you to secure data wherever it sits, within enterprises in your private data centers, could be in SaaS applications or could be in native cloud applications, all could be managed centrally from the cloud. At that time, with the launch of the SaaS product, we felt the right metric to start running the business by was subscription ARR because it didn't have the impact which revenue would have from the transformation to cloud. So as you know, ARR has grown nicely at scale, but so has cloud ARR. If you look at the second and third group of bars, you see the cloud ARR scale growing. And as a percentage of the subscription ARR mix, we've grown from about 60% plus to almost 90% as the most recent quarter. If you had asked us at the time of the IPO, I think we had shared a good long-term goal for us was to get to 80% cloud because we felt there was a meaningful business. There'd be customers which are more regulated, would be more resistant to move to the cloud, but we've been surprised by the uptick in this product. And I believe we have a decent shot to get to 90% or so in the next 4 to 6 quarters, which is where it might taper off. And then, we'll have a nice sized business, which is non-cloud focused on regulated industries and folks who want to kind of self-host. Now, one of the questions which I got on the call last week was around cloud net new ARR. If you just calculate the cloud net new ARR as reported by our metrics, you'll see a deceleration trend. This is what you see on the left. But that's largely because the migrations are completing because the year ago period had more migrations. So we went ahead and we shared some data on the call as well, but this bar chart should clarify things for you is we looked at cloud net new ARR without the impact of migrations, which is a much cleaner way to look at it. And you can see here the cloud net new growth rates continue to be very strong. Another important P&L item, which has impact from the cloud transformation is revenue. Revenue has grown at scale, but the growth rates have bounced around depending on the time of the cloud transformation. Early in the cloud transformation, revenue growth lagged subscription ARR. And towards the end of last year, it was ahead of the subscription ARR growth rates. As we wrap up this year, and the last bar is the guidance we provided last week, the revenue growth will show about 25%. But if you normalize for the cloud transformation, particularly material rise, that's about 30% and the guided ARR was 27%. So these are all converging. And going into next year, you'll see a greater alignment between subscription ARR and total revenue as reported because we are really wrapping up the cloud transformation. Moving on to margins. We have improved our gross margins pretty significantly over the years. We exited the commodity hardware business. We have relentlessly managed the support costs as well as cloud hosting costs. And we are actually right now above our long-term margin target of 75% to 80%. Now, I will remind you that we got some benefit from material rights through last year, which has also contributed to our gross margins. But even if you remove that, we are above 80% today. One thing going forward to think through, and I'll touch upon this on the long-term model as well, we are still early in our AI journey in terms of how our products are going to get adopted, optimization around tokens. We are still figuring out our pricing model as the adoption of our AI products grow. So I think from a -- that's one area where product mix is going to drive the margins over time, how much cloud, how much AI in the years to come. Let me move to operating margins. Now, because we went through a cloud transformation in the past 3 years, we have focused on a nontraditional metric, subscription ARR contribution margin as a proxy to operating margin because revenue was still going through a transformation in our P&L. And this is a good proxy or leading indicator for operating margin over time. And you can see here, we have grown subscription ARR margin pretty significantly over the years. But operating margin, despite the revenue transformation has also improved. And if you look at the guidance for this year for subscription ARR margin and make some assumptions, it will imply around breakeven for this year in terms of operating margin, even if you remove the impact of material rights. And that's a milestone for us. It's really an inflection point. And one thing we'll do as we wrap up this year and going into next year, we'll likely retire subscription contribution margin as a metric and start to guide an operating margin as that will be a more relevant indicator and more traditional than what you have seen as well. But there are a number of drivers here to talk through about what could improve and grow operating margin over time. And you heard some of that earlier today, but I'll mention and reiterate them again. We continue to source talent with a high bar globally. Close to half our engineering talent is India, and they're best-in-class, as good or better in some cases than talent we had in the United States, depending on the area. We similarly a lot of our operation folks as well we hire globally and try to optimize both talent as well as the cost leverage around it. We've talked about quite a bit earlier in earnings calls as well, but renewals is growing as a percent of business, and it's a much more efficient cost structure. And that leads to as well more natural efficiency, if you will, in our P&L. Our international business, we had to make significant investments over the years, and we'll continue to do so. But having set up the foundation, it will scale more efficiently going forward, and that should give us leverage as well. We have been early adopters of AI in different parts of the company. We obviously build AI products, but we're also using AI aggressively in different areas of the company, starting with engineering and technical teams, but also in support and other operational teams. As you heard Jesse talk a little bit about what they are trying in the go-to-market motions, not just in efficiency, but also how to drive growth. And that should give us leverage. Obviously, that requires an investment in the earlier period, but we are optimistic that over time, it will provide us more efficiency. And last but not the least, we made investments to get public as a company. We've been public for a little over 2 years now, and those investments don't need to be at the same level going forward and G&A become more efficient as well. So all of these combined should give us more leverage on operating margin over time. Next, let me touch upon cash flow. Three things drive free cash flow in our business: scale, operating leverage and billings duration. As you can know, we are growing fast. Business is becoming bigger every quarter. So scale is increasing. Just talked to you about operating leverage improving year-over-year. And those should help drive cash flow greater. The one area I think I've talked about in the past as well, which creates some headwinds to us in terms of cash flow is the billings mix. As we sell more cloud and SaaS products and AI products, they tend to be of shorter billing durations. So that is something we'll have to overcome. But despite that, we are growing cash flow dollars year-over-year. And you can see that our guidance implied $300 million for this year. We take profitability very seriously. We're obviously very focused on growth, and we will not compromise, but we do that in a very sensible fashion in terms of investments. I'll give you a little bit of history of the past few years. That was how our P&L looked the year before we went public. Obviously, margins were pretty negative. This was one question which was raised as we went public as well. People liked our growth, but it was a little unclear in terms of the path to profit and how quickly we'll get there. I'll just build out the slide here. And then you look at the next 2 columns, fiscal '21, we went public. We turned profitable on the subscription ARR contribution margin as well as free cash flow margins, the year we went public, 1 year or more ahead of schedule. And then this year last -- this past year, fiscal '27 -- '26, we exceeded our gross margin targets from a long-term perspective. And as I said earlier, our guidance for subscription contribution margin will imply breakeven, breakeven plus for operating margin this year. So we have worked hard to build your trust here, but we are focused on making investments in a very disciplined manner without compromising on growth. I'll wrap up here with a look at our long-term model. The last update for this we had given at the time we went public a couple of years back. I'll start out with gross margin on the top. Our previous outlook was 75% to 80% a couple of years back. But given where we are, if you look at the left 2 columns, we have progressed past that. We do want to give ourselves some room there. That's why the range is a little broader at 77% to 82%. And really, the goal will be to be 80% and above, but it's still early in terms of the AI product adoption. So we're going to learn more both in terms of the cost structure, the pace of adoption and our pricing models as well in the next couple of years. So that's why we want to give ourselves more room. We're going to lean into -- continue to lean into R&D pretty significantly. You saw the market opportunity, you saw our product footprint, the platform. We're going to do it as efficiently as possible, but we will invest and lean into R&D. Our go-to-market motion is very human-driven. And obviously, we will use AI to optimize that in the coming years. But the ASPs are higher, the product is complex. It gives a lot of benefits to our customers over time. It's very sticky, but it does require human interactions to sell the value. And that will be in the mid-30s area. And then G&A, as I said earlier, a lot of room to optimize there now that we have been public for a couple of years. The initial investment is done, and that will be in the 7% to 8% area. All of this leads to 20% plus operating margins and cash flow 25% plus. As I talked about, our billings duration will continue to compress a bit, and that will create some headwinds to cash flow, but we're confident we'll get past the 25% cash flow margin. Last but not the least, now that we are on the cusp of operating profitability on a non-GAAP basis, I think the next question will be how are we looking towards GAAP profitability. The key difference, obviously, is stock-based compensation. That's the big portion, which bridges GAAP to non-GAAP operating margin. And we are focused on bringing dilution down to the low single digits. Obviously, we're going to balance hiring and retaining a great talent given what we are building. But at the same time, we'll be good stewards of investor capital, and we will work on bringing our dilution down to the low single digits. And that will help us bring SBC as a percent of revenue down, ultimately leading to GAAP profitability. So I'll wrap up here. Just a reminder of the topics we covered. Hopefully, we have a proven track record of execution as the time we have known you, obviously, since a public company as well, and we appreciate your trust in us. We have a lot of levers for growth, as you've heard today. In 3 large growing markets, we have a true multiproduct flywheel along with our unique go-to-market approach. And then, we'll continue to be disciplined and allocate capital appropriately and thoughtfully across our different product pillars and go-to-market to drive durable growth and improving profitability over the years. Thank you.

Thank you. We'll start here in the front.

Saket Kalia at Barclays. Thanks to the team for hosting this session, super educational all around. Since we just reported earnings last week, maybe we could just start with a financial question here for you, Kiran. I think the identity business has been super successful, right? We talked about that a little bit earlier. Clearly, the fastest-growing S-curve. But on the other side of that, we got a couple of questions just about net new ARR, subscription net new ARR, not just the total subscription net new ARR. If you exclude identity, let's call that kind of core cyber resilience net new. And what it felt like in Q1 was that maybe that core net new ARR growth slowed a little bit compared to prior quarters. I was wondering if, Kiran, maybe if you can just touch on that and whether that's the way that we should be thinking about this going forward? Does it make sense?

Yes. Thanks, Saket, and good to see you here in person. Thanks for making the trip. So yes, if you do some rough calculations and estimates on what Identity was this quarter, we didn't break it out specifically. You will see that without that, the growth rate would be slower. But as a reminder, we don't run the business with a quarterly net new ARR number. We run it on an annual basis. That's what we plan towards. That's what we invest towards. And quarters can be lumpy because it's an ARR-based model, and you could have transactions which could influence it. We also had a very strong Q1 last year, and as well, the compares could be tougher. But the product mix growth will vary quarter-to-quarter. We have a lot of different products to sell, depending on the timing of transactions, how much the pipeline is developed, certain transactions could close in a quarter and certain product businesses could be bigger in terms of net ARR. We should really look at it on an annual basis.

All right. Eric Heath with KeyBanc. Maybe one for Kiran, one for Bipul and the broader team here. But Kiran, I saw that the TAM that you guys had up on one of the earlier slides in the day had a 20% CAGR on the TAM opportunity. So curious to hear how you as a team are thinking about the long-term growth opportunity for the business relative to that TAM? And then, Bipul and team, one thing I thought was really interesting and a significant value add for customers is the idea of the agentic cyber resilience opportunity. As these AI attacks become faster, you need to recover faster. And the agentic opportunity just seems like it's a home run in terms of the value proposition. So curious how you're thinking about the monetization of that agentic capabilities?

I'll start with we are investing towards the TAM. So I think capital is one of the most important parts of my job along the rest of the team. But it's great to be in a position where we have multiple investment opportunities, so every year when we start our annual planning process, we look at a 3 year view. Obviously, world is changing pretty significantly, but we are primarily investing really in the product portfolio and then the go to marked. So we invest across our core products, but more importantly in our emerging products. And then in terms of capacity in the field, both in the core as well as Rubrik X team. And one is making those investments, but -- and we have to execute towards it, but how can we deliver things faster. That's a big focus being over the past year and this year as well. Can we get products out in the market faster with the use of AI? Can we enable reps faster, make them more successful, reduce the ramp time? You heard that from Jesse as well faster because that is ultimately what's going to drive faster growth and more durable growth.

Regarding agentic cyber resilience opportunities, we definitely see both Rubrik as an agent to respond to AI attacks as well as you heard about agent cloud solutions around guardrails and rewind. Definitely, I mean, we feel that there's a tremendous opportunity in front of us. In terms of monetization and how this pricing packaging will work, we are still working through it. One of the things that Mike and Dave has done as the Rubrik Agent Cloud, we are actually packaging as something that is indexed under token consumption. That's what we are kind of working through. So our idea is that we want to always match how customers pay for our solution based on what they do on their core application or core AI and so that it makes it easier for them to understand. So if you're paying in one way for their actual agent, how do we actually agentic resilience is priced that is indexed on that. So there is a lot of discovery that is still in front of us. Obviously, we plan to continue to innovate, invest in innovation, and we need to monetize it.

Joe Gallo from Jefferies. This has been a great day. I want to talk through the Agentx sales motion. The product pitch and why data should win is very logical, but you're also selling to a team at the customer who has historically leaned on other cybersecurity vendors historically. So how do you break through that? Does that add complexity to the sales process? And then, what does that competitive landscape even look like? I imagine it's the Wild West today.

I'll start, and then I'll let Dev embellish. It's definitely an exciting time. It does feel like the Wild West. Over the last decade or so, Rubrik has developed a brand that is highly trusted, first within the IT organization as we escalate up to relevancy with the CIO and lately on the back of cyber resilience and identity with the CISO. The bulk of the conversations now, specifically around coding agents, the prolific agent of the day, we find ourselves interacting with VPs of engineering and CTO. That's a very different persona as you've observed. But I think the fact that we have a reputation that is strong with IT and security, and we're bringing a message to market that is both around acceleration and risk mitigation, we're having a very warm reception. Dev, anything that you would add?

The only thing that I would add is on the competitive landscape, we did try and understand what the other solutions look like in the market because we were rolling out agents ourselves last year in a heavier way. And there were -- I think while things in the monitoring and observability space do have more presence, I think the 2 places that we stand apart are number one, in the way that we do run-time security and governance, where we think about that being differentiated is just taking an AI-driven approach for which you need SLM infrastructure through the Predibase acquisition. And then we also think that a company that builds the best model-driven approach will have the best context. We think we have the richest data and identity context for that. And that's like one core capability that I think we see ourselves kind of stand more unique on. And the second is the ability to do agent rewind and provide resilience message after an agent destructive action as well.

This is Shrenik Kothari from Baird. So Bipul, you have framed the platform as really complementary kind of network effects driven, which each additional product is adding to the value of the platform. And I mean, the team talked about S-curves ramping and now you can stack them on top of each other. So just in light of all the initiatives around, of course, you have the Agentic Cloud, the Flex program, some of the product, like how should we think about the upside durability of the NRR, right, which, of course, you are best-in-class, but you have this sort of S-curve stacking and compounding. And then just broadly, new versus expansion mix, how to think about that going forward? Because it looks like there's much broader penetration that's available for both new and penetration?

I'll let Kiran answer some of the more quantitative way. But I'll say qualitatively, at our scale and as we are growing, NRR may not be the right representation because we are landing bigger and bigger deals because in the 4, 5 years ago, as you saw the customer adoption, customer will give us a very small part of their footprint because we were still newer in their environment and will grow quickly into the other workloads. Now, we are landing larger and larger deals, which impacts the expansion opportunities in those accounts. So what we are focused on is how do we transform our customers with multiple products to start with. And that's what is driving higher average deal size. If you look at 70% of our customers landing more than 2 products, these are all indicators of how Rubrik is maturing and as any large scale mature companies, dynamics would evolve over time. Anything to add?

Yes, I'll just add that if you look at the components of the NRR, we continue to have a very strong gross retention rate, and that's very stable, has been for many years. And that's really the foundation for NRR. And on top of that, if you look at all the 3 vectors you've talked about in the past, whether it's data growth, workload growth, organic data growth, workload growth or the additional applications we sell on that, security identity and now AI as well. They are all healthy levers for growth, but we are also not a consumption based pricing model per se. We have a little bit of it. It's more subscription oriented. And if you look at that in that context, close to 120 is pretty high there, unlike consumption models where it can spike up and down. We have much more stability there. At the same time, we have a lot of room to grow and new. You heard about it today, we have more that 50% of the Fortune 500 left, 75% of the Global 2000 plus a lot of more product to sell at land time as well. So the lands are becoming bigger and that will have a tension on the NRR. So we obviously want to do both, and they will pay attention to each other, but ultimately the goal is to keep growing.

Matt Martino from Goldman Sachs. Bipul, I wanted to zoom out for a moment. If you look at Mythos, the model basically proved that the window between finding a vulnerability and exploiting it has collapsed dramatically, and it doesn't seem like any patching cycle can really keep up with that. So what I'm trying to understand is what does that do to Rubrik's role? Does resilience start moving up the security budget, less the insurance policy you buy last, more of the first platform decisions a CISO makes? And does that increasingly put you in the conversation alongside some of these traditional infrastructure security platforms as opposed to more downstream of them?

If you look at Gartner's most recent advisory to the customers, they say that cyber resiliency is a must and customers would explore preemptive technology for patching and recovery. So if you think about it, obviously, if you have a house, you have to close the windows and doors and set an alarm, but that's basic. But that's not your strategy. That's basic. My contention is that in the age of Mythos and AI frontier models, cyber resilience is the only cybersecurity strategy. Everything else is basic. And what does cyber resiliency mean in a broader context? Ability to patch without human in the loop, if it is a known issue and ability to recover at AI speed. And you cannot recover at AI speed if you don't have preemptive processes. And that's what Rubrik's preemptive recovery engine comes in because we are doing the work in peace time to be able to recover at AI speed in war time. And this is where the world is going. At the end of the day, the security used to be incidental things outside of operations, and recovery used to be the same thing. But if attacks are going to be continuous because there is no detection and there is no prevention, then the recovery has to be continuous. So at any time in your process, you should be able to recover at machine speed, AI speed and keep going. So our belief is that cyber resilience is going to be not incidental, but fundamental to your operations. And this is the only cybersecurity strategy that has any meaning in the world in the age of Mythos.

Question for Mike and Kiran. So first of all, great first Analyst Day. Congratulations. I really learned a lot. So thank you for that. So the question for you guys is, you talked about, obviously, AI transforming the pace at which you develop products. You've got a product suite you're selling between AI, data and identity. You also have new ways to go to market, accelerate your go-to-market. When you put those 3 things together, and there is effectively infinite white space ahead of you, make the case for why your growth should be in the 20s. Because it seems to me if you do some basic math on this, there's no reason for your overall business revenue scale to accelerate. So that's the first question I have. Like why do we think there's deceleration in the model? So that's the first question. Second question is, Kiran, I saw your last slide on long-term margins. I'm going to challenge you on this because that seems to be the last generation software company, right? 80% margins, pop up, 25% free cash flow margins. If you, as Bipul just said a few minutes ago, you drink your own champagne in the company, you're agent defying your entire business model, paint the case for why Rubrik's not the case study for what the long-term unit economics of an agentic software company looks like, which probably results in north of 35% free cash flow margins? Those are the 2 questions for you guys.

Yes. Let me start with the second one, and then Mike and I can do the first one. So the way we look at long-term margins is it's not forever, right? I think about it as maybe 3 to 5 years out. We are definitely very much in investment mode towards driving that durable growth. We have multiple levers for investments, multiple areas we want to invest in, right? It's still very early in the AI age around gross margins. A lot of companies are figuring it out, right, model cost, token costs. I think right now, it's a badge of honor to use tokens, but quickly, it is like what are you producing with the tokens, right? And our pricing models also evolve. So we are trying to be prudent there, give ourselves more room there for the range you see in the gross margin. And definitely, over the next few years, we want to invest pretty significantly in R&D. The product we sell is complex, as you see, right? The depth of the product, the value has to be sold today very much in humans. It's not a consumer application, you put it out there and you'll just start scaling, right? You don't have that kind of transaction sizes, the reach in the Fortune 500. Our customers selling $10 million plus unless you build the product depth, and that requires human based selling. So that is why will require the sales and marketing expense, which we have outlined as well. And we have 2 teams, so the taller team is the Rubrik RX team. It still requires kind of some overlay there. so we are trying to be prudent there, giving ourselves some room, but yes, I think there could be upside obviously in the years beyond that. What was first question on this? It was about growth re-acceleration.

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I mean, our goal is, if you hear Bipul and Mike talk about it, right? But it also requires the art of stacking curves, which we have done in the past, and we'll have to do it at scale. So that's obviously the challenge and opportunity for us. Again, I'll remind you that we are not a traditional consumption based model that some quarter, things just spike up. We're much more of a subscription SaaS business so that will require it is more steady, but it requires -- it will -- you won't see growth accelerating and the accelerating. You will see it more stable. But yes, that's the opportunity and challenge for us is could we accelerate growth given the product footprint we have.

Okay. We're going to take one last question.

Fatima Boolani from Citi. Kiran, the question is for you. It's a little bit of a riff on the prior question. The Flex model, very interesting. I think many of us in the room have a lot of experience with companies going down this path. Just so you can make yourselves that much easier to do business with. So that's great. But how should we think about what you've contemplated in Flex adoption in your guidance? So how does that change the complexion of revenue, the complexion of billings? ARR probably is accepted, but does RPO become a more important metric? And is there an element of ramped accounting mechanics that we should consider again, just so we are sort of well positioned to think about how this might create some volatility in numbers, but then also the way you're thinking about forecasting and guidance? And just as an adjunct to that question, is this motion going to exclusively be for new customers? Or is this something you're going to start to talk to with some of your most enthusiastic existing customers who would naturally be predisposed to spending more with anyway?

Yes. No, great question. It's -- we're very excited about it. I think this is the model which other cybersecurity companies and software companies have successfully launched. But it is still early days. I did want to caveat that. We've done a couple of transactions, including the one which Jesse mentioned earlier, which is a large international transaction we had in Q1. But we have some assumptions for it in the guidance that's already assumed. But we believe it will be a ramp. It will start out being pretty measured. It's almost the second half now through the year, and we can provide you a little bit more update as we head into next year. We do think it can become more significant over time. But at least for this year, we think it will be more selective in terms of the types of transactions, types of customers who may be -- we have a minimum size as well for customers to avail that. So we'll grow into that. I think the way you should think about the -- from an ARR perspective, it will be seen as TCV by the term length, and that's how both ARR and revenue will work.

Okay. Well, with that, I'd like to wrap up everything up, and thank you so much for spending the day with us, and we'll be around for a little bit for additional questions. Thank you.

Thank you, everybody.