Rubrik (RBRK) risk factors, FY2025 10-K

Risks Related to Our Business

1. 01Our recent rapid growth may not be indicative of our future growth. Our rapid growth also makes it difficult to evaluate our future prospects
2. 02Rubrik, Inc. 2025 Form 10-K
3. 03If the market for data security solutions does not grow, our ability to grow our business and our results of operations may be adversely affected
4. 04We have a limited operating history, particularly with respect to our offering of RSC, which makes it difficult to forecast our future results of operations
5. 05In addition, we operate in a new market for data security solutions, and as such we have encountered, and will continue to encounter, risks and uncertainties frequently experienced by growing companies in new and rapidly changing markets, such as the risks and uncertainties described throughout this section
6. 06If we are unable to attract new customers, our future results of operations could be harmed
7. 07We have a history of operating losses and may not achieve or sustain profitability in the future
8. 08If our customers do not renew their subscriptions for our platform and data security products or expand their subscriptions to increase the amount of data secured, secure new applications, or include new features or capabilities, our results of operations could be harmed
9. 09If our data security solutions fail or do not perform as intended or are perceived to have defects, errors, or vulnerabilities, our brand and reputation will be harmed, which would adversely affect our business and results of operations
10. 10Our use of generative artificial intelligence tools may pose risks to our proprietary software and systems and subject us to legal liability
11. 11We expect our revenue mix and certain business factors to impact the amount of revenue recognized period to period, which could make period-to-period revenue comparisons not meaningful and difficult to predict
12. 12We rely upon third-party cloud providers to host our data security solutions, and any disruption of, or interference with, our use of third-party cloud products would adversely affect our business, financial condition, and results of operations
13. 13We may not be able to successfully manage our growth, and if we are not able to grow efficiently, our business, financial condition, and results of operations could be harmed
14. 14The markets in which we participate are competitive, and if we do not compete effectively, our business, financial condition, and results of operations could be harmed
15. 15Our estimates of market opportunity, forecasts of market growth, and potential return on investment may prove to be inaccurate, and even if the market in which we compete achieves the forecasted growth, our business could fail to grow at similar rates, if at all
16. 16If customers have not utilized their Subscription Credits before they expire, this could result in customer dissatisfaction and our future results of operations could be harmed
17. 17We rely on the performance of highly skilled personnel, including senior management and engineering, services, sales, and technology professionals. If we are unable to retain or motivate key personnel or hire, retain, and motivate qualified personnel, our business will be harmed
18. 18We derive substantially all of our revenue from our platform, and we have directed, and intend to continue to direct, a significant portion of our financial and operating resources to developing more features and functionality for our platform
19. 19We expect fluctuations in our financial results, making it difficult to project future results, and if we fail to meet the expectations of securities analysts or investors with respect to our results of operations, our stock price and the value of your investment could decline
20. 20We depend and rely on SaaS technologies from third parties to operate our business, and interruptions or performance problems with these technologies may adversely affect our business and results of operations
21. 21If we do not effectively expand and train our sales force, we may be unable to add new customers or retain and increase sales to our existing customers, and our business will be adversely affected
22. 22Our sales cycles can be long and unpredictable, and our sales efforts require considerable time and expense
23. 23If we fail to adapt and respond effectively to rapidly changing technology, evolving industry standards, changing regulations, or to changing customer needs, requirements, or preferences, our data security solutions may become less competitive
24. 24Incorrect or improper implementation or use of our data security solutions could result in customer dissatisfaction and harm our business, financial condition, and results of operations
25. 25We use third-party open-source software in our data security solutions, which could negatively affect our ability to sell our data security solutions or subject us to litigation or other actions
26. 26We rely on software and data licensed from other parties. Defects in or the loss of software or access to data from third parties could increase our costs and harm the quality of our data security solutions
27. 27We are subject to governmental export and import controls and economic sanctions laws and regulations that could impair our ability to compete in international markets or subject us to liability and reputational harm if we violate the controls
28. 28If our partners, including our Channel Partners, fail to obtain appropriate import, export, or re-export licenses or permits, we may also be adversely affected through reputational harm, as well as other negative consequences, including government investigations and penalties
29. 29We are subject to anti-corruption, anti-bribery, and similar laws, and non-compliance with such laws can subject us to criminal or civil liability and harm our business, financial condition, and results of operations
30. 30Downturns or upturns in our sales may not be immediately reflected in our financial condition and results of operations
31. 31Seasonality may cause fluctuations in our revenue and related metrics
32. 32We will face risks associated with the growth of our business with certain heavily regulated industry verticals
33. 33Sales to government entities are subject to a number of challenges and risks
34. 34Acquisitions, strategic investments, joint ventures, or alliances could be difficult to identify, pose integration challenges, divert the attention of management, disrupt our business and culture, dilute stockholder value, and adversely affect our business, financial condition, and results of operations
35. 35Any inability to maintain a high-quality customer support organization could lead to a lack of customer satisfaction, which could hurt our customer relationships and have an adverse effect on our business, financial condition, and results of operations
36. 36Failure to effectively develop and expand our sales and marketing capabilities or improve the productivity of our sales and marketing organization could harm our ability to expand our potential customer and sales pipeline, increase our customer base, and achieve broader market acceptance of our data security solutions
37. 37If we fail to enhance our brand cost-effectively, our ability to expand our customer base will be impaired and our business, financial condition, and results of operations may be adversely affected
38. 38We have a limited history with pricing models for our data security solutions, and we may need to adjust the pricing terms of our data security solutions, which could have an adverse effect on our revenue and results of operations
39. 39We may require additional capital to support the growth of our business, and this capital might not be available on acceptable terms, if at all
40. 40We are exposed to fluctuations in currency exchange rates, which could negatively affect our results of operations
41. 41Unfavorable conditions in our industry or the global economy, including those caused by the ongoing conflicts around the world, or reductions in technology spending, could limit our ability to grow our business and negatively affect our results of operations
42. 42We typically provide service-level commitments under our customer agreements. If we fail to meet these commitments, we could face customer terminations, a reduction in renewals, and damage to our reputation, which would lower our revenue and harm our business, financial condition, and results of operations
43. 43Sales to enterprise customers involve risks that may not be present or that are present to a lesser extent with respect to sales to smaller organizations
44. 44Our intellectual property rights may not adequately protect our business
45. 45If we are not successful in expanding our operations and customer base internationally, our business and results of operations could be negatively affected
46. 46We may become subject to intellectual property disputes, which can be costly and may subject us to significant liability and increased costs of doing business
47. 47We and our employees have and may continue to be subject to claims alleging violations of our employees’ contractual obligations to their prior employers. These claims may be costly to defend, and if we do not successfully do so, our business could be harmed
48. 48Our company values have contributed to our success. If we cannot maintain these values as we grow, we could lose certain benefits we derive from them, and our employee turnover could increase, which could harm our business
49. 49We are subject to risks inherent in international operations that can harm our business, financial condition, and results of operations
50. 50Changes in tax laws or regulations could harm our financial condition and results of operations
51. 51We could be required to collect additional sales or other indirect taxes or be subject to other tax liabilities in various jurisdictions that may adversely affect our results of operations
52. 52Our ability to use our net operating losses to offset future taxable income may be subject to certain limitations
53. 53We may be subject to additional tax liabilities, which could adversely affect our results of operations
54. 54If our estimates or judgments relating to our critical accounting policies prove to be incorrect, our results of operations could be adversely affected
55. 55The terms of the financing documents governing our term loan and credit facilities restrict our current and future operations, particularly our ability to respond to changes or to take certain actions

Risks Related to Ownership of Our Common Stock

1. 56Future transfers by holders of shares of Class B common stock will generally result in those shares converting to shares of Class A common stock, which will have the effect, over time, of increasing the relative voting power of those holders of Class B common stock who retain their shares in the long term
2. 57Our stock price may be volatile, and the value of our Class A common stock may decline
3. 58Future sales of our Class A common stock in the public market could cause the market price of our Class A common stock to decline
4. 59Our issuance of additional capital stock in connection with financings, acquisitions, investments, our equity incentive plans, or otherwise will dilute all other stockholders
5. 60We do not intend to pay dividends for the foreseeable future and, as a result, your ability to achieve a return on your investment will depend on appreciation in the price of our Class A common stock
6. 61We are an “emerging growth company,” and we cannot be certain if the reduced reporting and disclosure requirements applicable to emerging growth companies will make our Class A common stock less attractive to investors
7. 62We incur significant costs as a result of operating as a public company, and our management is required to devote substantial time to compliance with our public company responsibilities and corporate governance practices
8. 63Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of our company more difficult, limit attempts by our stockholders to replace or remove our current management, and limit the market price of our Class A common stock
9. 64If securities or industry analysts do not publish research or publish unfavorable or inaccurate research about our business, the market price and trading volume of our Class A common stock could decline
10. 65Any future litigation against us could be costly and time-consuming to defend
11. 66Our business could be disrupted by catastrophic events