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]

Core Insights - Rapid7, Inc. reported a slower start to 2025 than anticipated but maintains a clear strategy and confidence in long-term opportunities [2] - The company is focusing on investments in Managed Detection and Response (MDR), accelerating Exposure Command adoption, and enhancing its go-to-market strategy to improve Annual Recurring Revenue (ARR) in the latter half of the year [2] Financial Performance - ARR reached $837.2 million, a 4% increase year-over-year [3][4] - Total revenue for Q1 2025 was $210.3 million, up 3% from $205.1 million in Q1 2024 [3][4] - Product subscriptions revenue was $203.9 million, reflecting a 4% increase year-over-year [3][4] - Professional services revenue decreased by 23% to $6.3 million [3] - GAAP net income was $2.1 million, with a net income per share of $0.03 [3][4] Operational Metrics - The number of customers increased to 11,685, a 2% rise from 11,462 in the previous year [3] - ARR per customer grew to $71.6 thousand, up from $70.4 thousand [3] - Free cash flow for the quarter was $24.7 million, down from $27.5 million in Q1 2024 [4][5] Guidance for Future Performance - For Q2 2025, ARR is expected to be between $850 million and $880 million, with year-over-year growth of 1% to 5% [7] - Total revenue guidance for the full year 2025 is projected between $853 million and $863 million, with a similar growth rate of 1% to 2% [7] - Non-GAAP income from operations is anticipated to be between $125 million and $135 million for the full year [7] Recent Business Developments - Rapid7 launched several new products and services, including unified threat-informed remediation and Managed Detection & Response for Enterprise [8] - The company appointed three new members to its Board of Directors to enhance operational efficiency and drive long-term shareholder returns [8] - Plans for expansion in India include opening a global capacity center to serve as a Security Operations Center and innovation hub [8]

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]

Core Insights - Rapid7, Inc. has announced significant enhancements to its Command Platform, focusing on unified threat-informed remediation and AI-assisted automated detection and response, aimed at improving security outcomes for organizations [1][2]. Group 1: Enhancements to Command Platform - The new version of the Command Platform provides security teams with platform-level remediation capabilities across exposure management and threat detection, enhancing visibility and collaboration [1]. - Integrated remediation of vulnerabilities is now available, whether from Rapid7's own scanner or third-party tools, along with AI-powered prioritization for threat investigation [3]. - Active Remediation with Velociraptor allows Rapid7 to act on behalf of customers to remove malicious artifacts, effectively responding to threats before they escalate into incidents [3]. Group 2: Addressing Security Challenges - Security teams are facing an expanding attack surface and a fragmented approach to security tools, necessitating automated remediation across the entire ecosystem [2]. - The enhancements aim to transform exposure and threat remediation processes by proactively identifying and prioritizing critical exposures [2]. Group 3: Key Features of the Command Platform - Unified Vulnerability Management allows organizations to consolidate risk signals across various security tools, enabling better prioritization and streamlined remediation [4]. - Fully Integrated Automation in the Remediation Process reduces administrative overhead and improves communication efficiency, speeding up remediation efforts [4]. - The AI-Powered Triage feature provides security analysts with visibility into AI decision-making, enhancing trust and integration of automation into workflows [4]. Group 4: Financial Protection and Support - The Breach Protection Warranty offers up to $1,000,000 in coverage for Managed Threat Complete (MTC) Ultimate customers, covering expenses related to cyberattacks [4]. - Rapid7's service includes unlimited incident response, simplifying breach response planning and reducing financial complexity for customers [4].

Core Insights - Rapid7 has launched a new Managed Detection & Response (MDR) service specifically designed for large enterprises, addressing the unique demands of complex and distributed environments [1][2] - The new MDR for Enterprise service offers customizable detection and response capabilities, filling visibility gaps that standard MDR services may leave in sprawling digital environments [2][3] - This service emphasizes continuous collaboration between Rapid7's Security Operations Center (SOC) and the internal teams of organizations, enhancing security operations processes [3][4] Service Features - The MDR for Enterprise integrates proprietary, vertical-specific, and legacy systems into the workflow, providing comprehensive situational awareness and reducing dwell time [7] - Customized detection logic is tailored to each organization's specific tools, telemetry, and risk profile, ensuring complete visibility across unique environments [7] - Continuous monitoring extends to in-house and non-standard systems, enabling earlier detection of attacker behaviors through correlation across various layers [7] Market Demand - Large security teams are seeking more than standard detection and response approaches; they require confidence to move faster and respond smarter to evolving threats [4] - Organizations are increasingly shifting towards partnership models like Rapid7's MDR for Enterprise to keep pace with the complexities of distributed infrastructure [4] Company Overview - Rapid7 aims to create a safer digital world by simplifying and making cybersecurity more accessible, serving over 11,000 global customers [6] - The company combines cloud risk management with threat detection and response to reduce attack surfaces and eliminate threats effectively [6]

Core Insights - Rapid7, Inc. has launched Managed Detection & Response (MDR) for Enterprise, a fully managed and customizable service aimed at complex enterprise environments [1][2] - The new service addresses visibility gaps in sprawling digital environments, combining customization, flexibility, and 24/7 protection from Rapid7's global Security Operations Center (SOC) [2][3] - MDR for Enterprise enhances Rapid7's existing offerings by integrating deeply tailored detection engineering with continuous collaboration between Rapid7's SOC and the internal teams of organizations [3][4] Service Features - The service provides comprehensive situational awareness by integrating proprietary, vertical-specific, and legacy systems into the MDR workflow, which reduces dwell time and enhances return on security investments [7] - Customized detection logic is tailored to each organization's specific tools, telemetry, and risk profile, ensuring complete visibility and reducing risks from unmonitored systems [7] - Continuous threat monitoring extends to in-house and non-standard systems, enabling earlier detection of attacker behaviors through correlation across various layers [7] Market Demand - Large security teams are seeking more than standard detection and response approaches; they require confidence to act quickly and effectively against evolving threats [4] - Organizations are increasingly adopting partnership models like Rapid7's MDR for Enterprise to keep pace with distributed infrastructure and evolving security challenges [4] Company Overview - Rapid7 aims to create a safer digital world by simplifying and making cybersecurity more accessible, serving over 11,000 global customers [6] - The company focuses on uniting cloud risk management with threat detection and response to minimize attack surfaces and eliminate threats efficiently [6]

Core Insights - Rapid7 has launched Intelligence Hub, an integrated threat intelligence solution aimed at enhancing security teams' ability to detect and respond to threats more effectively [1][2] - The solution addresses significant challenges faced by security teams, including data overload, lack of context, and prioritization of threats [2][3] Industry Challenges - Two-thirds of SOC analysts reported a significant increase in security alerts over the past three years, while 70% noted a rise in the number of security tools they utilize [2] - The top three challenges identified in IDC's survey regarding threat intelligence solutions were cost (42.2%), false positives and alert fatigue (40.0%), and data quality and reliability (39.7%) [5] Features of Intelligence Hub - Intelligence Hub provides curated intelligence that minimizes false positives and enables automated responses, integrating seamlessly with existing Command Platform tools [2][7] - The solution delivers high-fidelity intelligence from various sources, including Rapid7's honeypots and proprietary research, ensuring that security teams focus on the most relevant threats [7] - Contextualized information allows security teams to prioritize threats based on industry, geography, and specific vulnerabilities, facilitating targeted remediation [3][7] Company Overview - Rapid7 aims to create a safer digital world by simplifying cybersecurity and empowering security professionals to manage modern attack surfaces [6] - The company serves over 11,000 global customers, providing comprehensive security solutions that unite cloud risk management with threat detection and response [6]

Core Viewpoint - Rapid7, Inc. will release its first quarter 2025 financial results on May 12, 2025, after market close, and will host a conference call to discuss the results and business outlook [1] Group 1: Financial Results Announcement - The financial results for Q1 2025 will be announced on May 12, 2025 [1] - A conference call will take place on the same day at 4:30 p.m. Eastern Time to discuss the results [1] - The conference call can be accessed via telephone or through a live webcast on the company's website [2] Group 2: Company Overview - Rapid7 aims to create a safer digital world by simplifying and making cybersecurity more accessible [3] - The company provides comprehensive security solutions to over 11,000 global customers, focusing on cloud risk management and threat detection [3]

Core Insights - Rapid7, a leader in extended risk and threat detection, announced the winners of its 2025 Partner of the Year Awards, recognizing exceptional collaboration and positive customer impact among partners [1][3] - The awards program is in its 5th year and acknowledges 24 partners across 13 categories in four major geographic regions [3] Partner Program Updates - Rapid7 introduced significant updates to its global PACT partner program, which includes tailored engagement programs, a new Partner Training Academy, and an expanded partner portal [2] - The program was rolled out to the entire channel community, including resellers, distributors, systems integrators, and service providers, through various global events [2] Regional Winners - North America Partner of the Year: SHI; Canada Partner of the Year: Softchoice; Public Sector Partner of the Year: CDW•G; Best Customer Retention Partner: GuidePoint Security; Cloud Security Partner: SHI; Detection & Response Partner: CDW; Exposure Management Partner: SHI; MSSP Partner: Novawatch; Distributor of the Year: Carahsoft; Emerging Partner: The Redesign Group [8] - EMEA Partner of the Year: Softcat; Best Customer Retention Partner: TRINEXIA South Africa; Cloud Security Partner: Saepio; Detection & Response Partner: Integrity360; Exposure Management Partner: Longwall Security; MSSP Partner: MEO; Distributor of the Year: Infinigate Deutschland GmbH; Emerging Partner: Telonic GmbH [8] - APJ Partner of the Year: DGplex; Best Customer Retention Partner: CyberRisk; Detection & Response Partner: Telstra; Exposure Management Partner: Wysetek Systems Technologists; MSSP Partner: Cythera; Distributor of the Year: APTSecure Technologies; Emerging Partner: ctrl:cyber [8] Partner Quotes - SHI expressed honor in being recognized as North America Partner of the Year, highlighting the team's dedication to delivering innovative solutions [12] - Softcat emphasized the strength of its partnership with Rapid7, reflecting over a decade of collaboration [12] - DGplex noted the recognition as APJ Partner of the Year as a testament to its team's commitment to innovative cybersecurity solutions [12]

Company Overview - Rapid7, Inc. is a leader in extended risk and threat detection, focusing on cybersecurity solutions that simplify and enhance security for organizations [8] - The company serves over 11,000 global customers, providing comprehensive security solutions that unite cloud risk management and threat detection [8] Board of Directors Changes - Rapid7 announced the appointment of three new members to its Board of Directors: Wael Mohamed, Mike Burns, and Kevin Galligan, expanding the Board to 11 directors [1][2] - These appointments are expected to enhance the company's leadership and execution capabilities, aligning with its growth strategy [2][3] Strategic Goals - The company aims to accelerate its growth and enhance operational efficiency through the expertise of the new board members [2] - Rapid7 is focused on delivering cutting-edge solutions in AI-driven threat detection, cloud security, and exposure management, positioning itself for sustainable and profitable growth [2] Cooperation Agreement - Rapid7 has entered into a cooperation agreement with JANA Partners Management, LP, which includes support for all of Rapid7's director nominees at the upcoming annual shareholder meeting [1][2] Expertise of New Board Members - Wael Mohamed brings over 30 years of experience in cybersecurity and digital transformation, having held leadership roles in various technology companies [4] - Mike Burns has more than 25 years of senior leadership experience in finance and operations within high-growth public technology companies [5] - Kevin Galligan has 18 years of experience in investing and driving shareholder value, currently serving as a Partner and Director of Research at JANA Partners [6]