Rapid7 (RPD) Q4 Earnings Miss Estimates

Company Performance - Rapid7 reported quarterly earnings of $0.48 per share, missing the Zacks Consensus Estimate of $0.50 per share, and down from $0.72 per share a year ago, representing an earnings surprise of -4% [1] - The company posted revenues of $216.26 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.89%, compared to year-ago revenues of $205.27 million [2] - Over the last four quarters, Rapid7 has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Outlook - Rapid7 shares have lost about 5.7% since the beginning of the year, while the S&P 500 has gained 3.2% [3] - The company's earnings outlook is mixed, with a current Zacks Rank of 3 (Hold), indicating expected performance in line with the market in the near future [6] - The current consensus EPS estimate for the coming quarter is $0.56 on revenues of $213.74 million, and $2.34 on revenues of $879.82 million for the current fiscal year [7] Industry Context - The Internet - Software industry, to which Rapid7 belongs, is currently in the top 29% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]