Rapid7(US:RPD) Globenewswireยท2025-05-12 20:05Core 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]