BOSTON, May 22, 2025 (GLOBE NEWSWIRE) -- Rapid7, Inc. (NASDAQ: RPD), a leader in extended risk and threat detection, today announced that the company will be attending the following conferences: The William Blair 45th Annual Growth Stock Conference in Chicago, IL. The presentation is scheduled for Tuesday, June 3, 2025 at 1:20 p.m. Central Time.The Stifel 2025 Cross Sector 1x1 Conference in Boston, MA on June 4, 2025.The Mizuho 2025 Technology Conference in New York, NY on June 10, 2025. The presentation fr ...

Core Insights - Rapid7 reported revenue of $210.25 million for the quarter ended March 2025, reflecting a 2.5% increase year-over-year and a surprise of +1.14% over the Zacks Consensus Estimate of $207.89 million [1] - The company's EPS was $0.49, down from $0.55 in the same quarter last year, but exceeded the consensus estimate of $0.35 by +40.00% [1] Financial Performance Metrics - Annualized recurring revenue (ARR) was reported at $837.22 million, slightly below the average estimate of $840.83 million [4] - The number of customers reached 11,685, surpassing the average estimate of 11,631 [4] - ARR per customer was $71,600, which is lower than the average estimate of $72,342.91 [4] - Revenue from professional services was $6.32 million, below the average estimate of $6.80 million, representing a year-over-year decline of -22.8% [4] - Product revenue was $203.94 million, exceeding the average estimate of $202.25 million, with a year-over-year increase of +3.6% [4] - Non-GAAP gross profit from professional services was $1.74 million, above the average estimate of $1.55 million [4] - Non-GAAP gross profit from products was $155.72 million, compared to the average estimate of $152.07 million [4] Stock Performance - Rapid7 shares have returned +6.7% over the past month, outperforming the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Company Performance - Rapid7 reported quarterly earnings of $0.49 per share, exceeding the Zacks Consensus Estimate of $0.35 per share, but down from $0.55 per share a year ago, representing an earnings surprise of 40% [1] - The company posted revenues of $210.25 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.14% and up from $205.1 million year-over-year [2] - Over the last four quarters, Rapid7 has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance and Outlook - Rapid7 shares have declined approximately 37.5% since the beginning of the year, compared to a decline of 3.8% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $214.54 million, and for the current fiscal year, it is $1.78 on revenues of $865.36 million [7] - The estimate revisions trend for Rapid7 is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Internet - Software industry, to which Rapid7 belongs, is currently in the top 39% of over 250 Zacks industries, suggesting that companies in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - Rapid7 ended Q1 2025 with an ARR of $837 million, reflecting a 4% year-over-year growth, which was below expectations [6][22][23] - Revenue for Q1 2025 was $210 million, growing 3% year-over-year and exceeding guided ranges [24][27] - Product revenue increased by 4% year-over-year, while professional services revenue declined due to a strategic shift away from lower-margin engagements [24][25] - Operating income for the quarter was $32 million, above the guided range, with an adjusted EBITDA of $39 million [25][26] Business Line Data and Key Metrics Changes - The detection and response (DNR) business continued to be the core growth driver, representing over half of total ARR and maintaining mid-teens growth [8][10] - The risk and exposure management business faced challenges, with growth deceleration and missed expectations, particularly in traditional vulnerability management offerings [8][9][15] - ARR per customer grew by 2% year-over-year to approximately $72,000, with a total customer base of 11,685, also reflecting a 2% year-over-year increase [22][24] Market Data and Key Metrics Changes - International revenue accounted for 25% of total revenue and grew by 10% year-over-year, indicating strong performance outside the U.S. [24] - The North American mid-market enterprise segment experienced slower deal cycles and tighter budget controls, impacting overall performance [9][10] Company Strategy and Development Direction - The company aims to reaccelerate long-term growth and expand free cash flow, focusing on three strategic pillars: enhancing detection and response capabilities, upgrading the vulnerability management customer base to the exposure management platform, and improving cost structure [7][18][19] - Rapid7 is transitioning from a traditional standalone vulnerability management business to a more integrated risk and exposure management approach, which is expected to stabilize performance [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted a more challenging macro environment than anticipated, with customers becoming increasingly cautious about investments and extended deal cycles becoming common [9][10] - The company adjusted its ARR guidance for the full year 2025 to a range of $850 million to $880 million, reflecting slower growth expectations [27][28] - Despite the cautious environment, management remains confident in the DNR business and its ability to drive growth, while also focusing on stabilizing the risk and exposure management segment [18][19] Other Important Information - The company fully repaid the remaining balance of its 2025 convertible notes, simplifying its capital structure [26] - Free cash flow for the quarter was $25 million, indicating strong operational discipline [26] Q&A Session Summary Question: Why is the upgrade cycle on Exposure Command taking longer than expected? - Management indicated that complexity in customer environments and budget constraints are primary factors affecting the upgrade cycle [34][35] Question: What needs to happen to reaccelerate ARR growth? - Management highlighted strong demand for DNR and the need to successfully upgrade the installed base as key drivers for reacceleration [41][43] Question: What is the timeline for stabilization in the risk and exposure management business? - Management expects moderate stabilization over the course of the year, with reacceleration anticipated moving forward [48][49] Question: Are there resilient customer segments amidst macro pressures? - Management noted that highly regulated industries and larger customers tend to be more resilient, while sectors like healthcare and education are experiencing more pressure [55][59] Question: How is the company addressing competition in the vulnerability management space? - Management emphasized the importance of upgrading the install base to integrated solutions to maintain competitiveness and customer retention [75][76] Question: What is the outlook for the DNR business independent of the VM dynamics? - Management expressed confidence in the DNR business's growth potential, citing strong demand and opportunities for new customer acquisition [83][84]

Financial Data and Key Metrics Changes - Rapid7 ended Q1 2025 with an ARR of $837 million, reflecting a 4% year-over-year growth, which was below expectations [5][20][21] - Revenue for Q1 was $210 million, growing 3% year-over-year and exceeding guided ranges [22][24] - Operating income for the quarter was $32 million, above the guided range due to timing of certain expenses [23][24] - Free cash flow for the quarter was $25 million, indicating strong operational discipline [24] Business Line Data and Key Metrics Changes - Detection and Response (DNR) business continued to be the core growth driver, representing over half of total ARR and maintaining mid-teens growth [7][9][10] - Risk and Exposure Management business faced challenges, with growth deceleration and negative performance in traditional vulnerability management offerings [7][13][21] - ARR per customer grew 2% year-over-year to approximately $72,000, with a total customer base of 11,685, also reflecting a 2% year-over-year increase [21][22] Market Data and Key Metrics Changes - International revenue represented 25% of total revenue and grew 10% year-over-year, indicating strong performance outside the U.S. [22] - The North American mid-market enterprise segment experienced slower deal cycles and tighter budget controls, impacting overall performance [8][9] Company Strategy and Development Direction - The company is focused on three strategic pillars: enhancing detection and response capabilities, upgrading vulnerability management customers to the exposure management platform, and improving cost structure [6][16] - Investments in innovation and operational efficiency are expected to drive future growth, particularly through the new operations center in India [6][10][16] Management's Comments on Operating Environment and Future Outlook - Management noted a more challenging macro environment than anticipated, with customers becoming cautious about investments and extending deal cycles [8][9][16] - The company adjusted its ARR guidance for 2025 to a range of $850 million to $880 million, reflecting increased budgetary uncertainty [25][26] - Despite challenges, management remains confident in the long-term growth strategy and the resilience of the DNR business [16][26] Other Important Information - The company fully repaid the remaining balance of its 2025 convertible notes, simplifying its capital structure [24] - New board members were welcomed, bringing expertise to support growth and industry leadership [18] Q&A Session Summary Question: Why is the upgrade cycle on Exposure Command taking longer than expected? - Management indicated that complexity in customer environments and budget constraints are primary factors affecting the upgrade cycle [30][32][33] Question: What needs to happen to reaccelerate ARR growth? - Management highlighted strong demand for DNR and the need to successfully upgrade the installed base as key drivers for reacceleration [39][42][44] Question: What is the timeline for stabilization in the risk and exposure management business? - Management expects moderate stabilization over the course of the year, with reacceleration anticipated moving forward [48][50] Question: Are there resilient customer segments amidst macro pressures? - Management noted that highly regulated industries and larger customers tend to be more resilient, while sectors like healthcare and education are experiencing pressure [56][60] Question: How is the company addressing competition in the cloud security market? - Management emphasized a focus on upgrading the existing install base rather than aggressive spending to acquire new customers, aiming for efficient growth [108][110][112]

Company Overview May 12, 2025 1 Disclaimers This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Neither we nor any other person makes any representation as to the accuracy or completeness of such data or undertakes any obligation to update such data after the d ...

PART I. FINANCIAL INFORMATION [Condensed Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for Q1 2025, including balance sheets, statements of operations, cash flows, and notes on accounting policies, acquisitions, debt, and a prior period error correction Q1 2025 Key Financial Highlights (in thousands) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Total Revenue | $210,253 | $205,101 | | Gross Profit | $150,773 | $144,107 | | Income (Loss) from Operations | $(101) | $9,716 | | Net Income | $2,105 | $1,406 | | Net Income per Share, Diluted | $0.03 | $0.02 | Balance Sheet Summary (as of March 31, 2025, in thousands) | Category | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total Current Assets | $732,645 | $786,111 | | Total Assets | $1,644,810 | $1,652,034 | | Total Current Liabilities | $589,155 | $630,216 | | Total Liabilities | $1,592,088 | $1,634,323 | | Total Stockholders' Equity | $52,722 | $17,711 | - An immaterial error was identified in Q4 2024 related to understated stock-based compensation expense in fiscal years 2023 and 2024, leading to a revision of comparative financial information presented[20](index=20&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of March 31, 2025, shows total assets of **$1.64 billion** and total liabilities of **$1.59 billion**, with cash and cash equivalents at **$291.5 million** and stockholders' equity increasing to **$52.7 million** Condensed Consolidated Balance Sheets (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $291,462 | $334,686 | | Total current assets | $732,645 | $786,111 | | Goodwill | $575,268 | $575,268 | | **Total assets** | **$1,644,810** | **$1,652,034** | | **Liabilities and Stockholders' Equity** | | | | Deferred revenue, current portion | $447,798 | $461,118 | | Total current liabilities | $589,155 | $630,216 | | Convertible senior notes non-current portion, net | $889,303 | $888,356 | | **Total liabilities** | **$1,592,088** | **$1,634,323** | | **Total stockholders' equity** | **$52,722** | **$17,711** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2025, total revenue was **$210.3 million**, a **2.5%** increase, resulting in a loss from operations of **$0.1 million** and net income of **$2.1 million** Condensed Consolidated Statements of Operations (in thousands) | Account | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Total revenue | $210,253 | $205,101 | | Total gross profit | $150,773 | $144,107 | | Total operating expenses | $150,874 | $134,391 | | Income (loss) from operations | $(101) | $9,716 | | Net income | $2,105 | $1,406 | | Net income per share, diluted | $0.03 | $0.02 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities was **$29.8 million**, while investing activities used **$79.2 million**, ending the quarter with **$298.7 million** in cash and equivalents Condensed Consolidated Statements of Cash Flows (in thousands) | Activity | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $29,757 | $31,070 | | Net cash used in investing activities | $(79,213) | $(41,694) | | Net cash provided by financing activities | $4,732 | $4,362 | | Net decrease in cash, cash equivalents and restricted cash | $(43,390) | $(7,755) | | Cash, cash equivalents and restricted cash, end of period | $298,711 | $206,375 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes detail revenue recognition, the **$51.2 million** Noetic Cyber acquisition, convertible senior notes including the **$46.5 million** 2025 redemption, an **$88 million** Israeli tax assessment, and a new **$660 million** cloud services commitment - The company acquired Noetic Cyber, Inc. on July 3, 2024, for a purchase price with an aggregate fair value of **$51.2 million**, consisting of cash, contingent consideration, and deferred payments[35](index=35&type=chunk)[39](index=39&type=chunk) - As of March 31, 2025, the company had outstanding 2.25% Notes due 2025, 0.25% Notes due 2027, and 1.25% Notes due 2029, with **$46.5 million** paid to redeem the outstanding 2025 Notes subsequent to the balance sheet date on May 1, 2025[55](index=55&type=chunk)[59](index=59&type=chunk) - In January 2025, the company amended a contract with a cloud services provider, increasing its total purchase obligation to **$660 million** over a five-year period[81](index=81&type=chunk) - The company received an initial assessment from the Israel Tax Authority (ITA) for approximately **$88 million** related to fiscal year 2021, which the company is contesting and has not recorded any impact from[86](index=86&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 performance, including **2.5%** revenue growth to **$210.3 million** and **$837.2 million** ARR, analyzing revenue, expenses, liquidity, and capital resources, noting sufficient funds for the next 12 months despite increased commitments Key Metrics as of March 31 | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenue (Q1, in thousands) | $210,253 | $205,101 | | Annualized Recurring Revenue (ARR, in thousands) | $837,220 | $807,196 | | Number of Customers | 11,685 | 11,462 | | ARR per Customer (in thousands) | $71.6 | $70.4 | - Total revenue increased by **$5.2 million** (**2.5%**) in Q1 2025 compared to Q1 2024, primarily driven by an **$8.1 million** increase in revenue from existing customers through renewals, upsells, and cross-sells[144](index=144&type=chunk) - Operating expenses increased by **$16.5 million** year-over-year, driven by higher personnel costs in R&D, increased commissions and marketing expenses in Sales & Marketing, and higher professional fees in General & Administrative[148](index=148&type=chunk)[149](index=149&type=chunk)[151](index=151&type=chunk) - As of March 31, 2025, the company had **$291.5 million** in cash and cash equivalents and **$301.1 million** in investments, which management believes are sufficient to meet operating and capital requirements for at least the next 12 months[156](index=156&type=chunk) [Overview](index=28&type=section&id=MD%26A%20Overview) Rapid7, a global cybersecurity provider, focuses on simplifying SecOps through its Command Platform, serving over **11,000** customers in **151** countries, with recurring revenue comprising **96%** of total revenue - The company's strategic focus is on being a leading provider of integrated security operations solutions, combining exposure management with threat detection and response[101](index=101&type=chunk)[102](index=102&type=chunk) - As of March 31, 2025, the company had over **11,000** customers in **151** countries, including **39%** of the Fortune 100[103](index=103&type=chunk) - Recurring revenue, which includes term software licenses, subscriptions, and managed services, constituted **96%** of total revenue for the three months ended March 31, 2025[107](index=107&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Q1 2025 total revenue increased **2.5%** to **$210.3 million**, with product subscriptions up and professional services down, while gross margin improved, operating expenses rose across all categories, leading to an operating loss Revenue Comparison (in thousands) | Revenue Type | Q1 2025 | Q1 2024 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Product subscriptions | $203,935 | $196,918 | $7,017 | 3.6% | | Professional services | $6,318 | $8,183 | $(1,865) | (22.8)% | | **Total revenue** | **$210,253** | **$205,101** | **$5,152** | **2.5%** | Operating Expense Comparison (in thousands) | Expense Category | Q1 2025 | Q1 2024 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Research and development | $47,888 | $41,368 | $6,520 | 15.8% | | Sales and marketing | $79,400 | $73,095 | $6,305 | 8.6% | | General and administrative | $23,586 | $19,928 | $3,658 | 18.4% | [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, liquidity included **$291.5 million** cash and **$301.1 million** investments, with **$29.8 million** cash from operations, significant cash used in investing, and future commitments including a **$46.5 million** note redemption and a **$660 million** cloud services obligation - Net cash provided by operating activities was **$29.8 million** for Q1 2025, compared to **$31.1 million** in Q1 2024[160](index=160&type=chunk)[162](index=162&type=chunk) - Net cash used in investing activities was **$79.2 million**, primarily for net purchases of investments (**$75.5 million**) and capitalization of internal-use software (**$3.7 million**)[164](index=164&type=chunk) - On May 1, 2025, the company paid **$46.5 million** to redeem the outstanding portion of its 2025 Convertible Senior Notes[158](index=158&type=chunk) - The company has a total purchase obligation of **$660 million** with a cloud services provider over five years, starting in 2025[157](index=157&type=chunk)[81](index=81&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies foreign currency, interest rate, and inflation as primary market risks, managing foreign exchange with forward contracts, and believes none had a material effect on its financial condition as of March 31, 2025 - Foreign currency exchange risk is managed through forward contracts designated as cash flow hedges, with a hypothetical **10%** adverse change in exchange rates not expected to be material[171](index=171&type=chunk)[172](index=172&type=chunk) - Interest rate risk affects cash equivalents and investments, and while the fair value of convertible senior notes fluctuates, a hypothetical **10%** change in interest rates is not expected to be material to the financial statements[173](index=173&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk) - As of March 31, 2025, the company does not believe that inflation had a material effect on its business, financial condition, or results of operations[177](index=177&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[180](index=180&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[182](index=182&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course litigation and claims, with management believing the outcomes will not materially adversely affect its business or financial condition - The company states that the outcome of ordinary course legal matters is not expected to have a material adverse effect on its business[184](index=184&type=chunk) [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - There have been no material changes to the risk factors disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024[185](index=185&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the reporting period, the company had no unregistered sales of equity securities and made no purchases of its own equity securities - The company reported no unregistered sales of equity securities or issuer purchases of its equity securities during the quarter[186](index=186&type=chunk)[188](index=188&type=chunk) [Other Information](index=45&type=section&id=Item%205.%20Other%20Information) No executive officers or directors adopted, terminated, or modified a Rule 10b5-1 trading plan or any non-Rule 10b5-1 equity trading arrangement during the quarter - No executive officers or directors terminated or modified a 10b5-1 equity trading plan during the quarter[191](index=191&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and a Cooperation Agreement with JANA Partners Management, LP - A list of exhibits filed with the report is provided, including required CEO/CFO certifications and a Cooperation Agreement with JANA Partners Management, LP[193](index=193&type=chunk)

Revenue Performance - Total revenue for Q1 2025 was $210.3 million, up 3% year-over-year, with product subscriptions revenue at $204 million, also up 4%[3] - Total revenue for Q1 2025 was $210,253,000, a 2.5% increase from $205,101,000 in Q1 2024[38] - Product subscriptions revenue reached $203,935,000, up from $196,918,000 in the same period last year, reflecting a growth of 3.1%[38] - Revenue guidance for full-year 2025 is projected to be between $853 million and $863 million, with a year-over-year growth of 1% to 2%[6] - Rapid7 expects ARR for Q2 2025 to be between $850 million and $880 million, reflecting a year-over-year growth of 1% to 5%[6] Customer Metrics - The number of customers decreased by 2% to 11,462 from 11,685 in the previous year[3] Income and Profitability - Non-GAAP income from operations for Q1 2025 was $32.4 million, down from $40.3 million in Q1 2024[4] - GAAP net income for Q1 2025 was $2.1 million, compared to $1.4 million in Q1 2024, with GAAP net income per share increasing to $0.03 from $0.02[4] - Net income for Q1 2025 was $2,105,000, compared to $1,406,000 in Q1 2024, representing a 49.7% increase[38] - Non-GAAP gross profit for Q1 2025 was $157,460, up from $151,095 in Q1 2024, reflecting a growth of 4.5%[46] - Non-GAAP gross margin improved to 74.9% in Q1 2025 from 73.7% in Q1 2024[46] - Anticipated non-GAAP net income for Q2 2025 is projected to be between $31 million and $33 million[50] - Anticipated non-GAAP net income per share, diluted, for Q2 2025 is expected to be between $0.43 and $0.46[50] Cash Flow and Expenses - Free cash flow for Q1 2025 was $24.7 million, compared to $27.5 million in Q1 2024[4] - Operating expenses for Q1 2025 totaled $150,874,000, an increase from $134,391,000 in Q1 2024, marking a 12.3% rise[38] - The company incurred stock-based compensation expense of $27,151,000 in Q1 2025, compared to $25,745,000 in Q1 2024[41] - Free cash flow for Q1 2025 was $24,677, down from $27,534 in Q1 2024, a decrease of 10.1%[48] - Anticipated free cash flow for full-year 2025 is projected to be between $125 million and $135 million[51] Assets and Liabilities - Cash and cash equivalents at the end of Q1 2025 were $291,462,000, down from $334,686,000 at the end of Q4 2024[36] - Total assets decreased to $1,644,810,000 as of March 31, 2025, from $1,652,034,000 at the end of December 2024[36] - Total liabilities were $1,592,088,000 as of March 31, 2025, compared to $1,634,323,000 at the end of December 2024[36] Product Development and Expansion - In April 2025, Rapid7 launched new products including unified threat-informed remediation and Managed Detection & Response for Enterprise[5] - The company announced plans for expansion in India, including the establishment of a global capacity center[10] Future Outlook - The company anticipates continued growth in cloud-based solutions and is focused on integrating acquired companies to enhance market position[32]

Annualized recurring revenue (“ARR”) of $837 million, an increase of 4% year-over-yearTotal revenue of $210 million, up 3% year-over-year; Product subscriptions revenue of $204 million, up 4% year-over-yearGAAP operating loss of $0.1 million; Non-GAAP operating income of $32 millionNet cash provided by operating activities of $30 million; Free cash flow of $25 million BOSTON, May 12, 2025 (GLOBE NEWSWIRE) -- Rapid7, Inc. (Nasdaq: RPD), a leader in extended risk and threat detection, today announced its fina ...

Core Insights - Wall Street analysts forecast that Rapid7 (RPD) will report quarterly earnings of $0.35 per share, reflecting a year-over-year decline of 36.4% and anticipated revenues of $208.45 million, which is an increase of 1.6% compared to the previous year [1] Earnings Estimates - Over the last 30 days, there has been an upward revision of 1.9% in the consensus EPS estimate for the quarter, indicating a collective reconsideration by covering analysts [2] - Changes in earnings estimates are crucial for predicting potential investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [3] Revenue Projections - Analysts estimate 'Revenue- Professional services' at $6.80 million, a decrease of 16.9% from the prior-year quarter [5] - The average prediction for 'Revenue- Products' is $202.25 million, reflecting an increase of 2.7% from the previous year [5] Key Metrics - The combined assessment suggests 'Annualized recurring revenue' will likely reach $840.83 billion, up from $807.20 billion year-over-year [6] - Analysts project the 'Number of customers' to reach 11,631, compared to 11,462 in the previous year [6] - 'ARR per customer' is expected to be $72,342.91, an increase from $70,400 in the same quarter last year [7] - 'Non-GAAP Gross Profit- Products' is forecasted to be $152.07 million, compared to $148.80 million year-over-year [7] Stock Performance - Over the past month, Rapid7 shares have recorded returns of -0.9%, while the Zacks S&P 500 composite has changed by +11.3% [7] - Based on its Zacks Rank 3 (Hold), RPD is expected to perform in line with the overall market in the upcoming period [7]