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Mar 31, 2020
Rapid7 Q1 2020 Earnings Report
Rapid7 had a solid start to 2020, exceeding revenue guidance and strengthening the balance sheet.
Key Takeaways
Rapid7 announced its Q1 2020 financial results, reporting revenue of $94.3 million, a 29% year-over-year increase. The company's ARR grew by 31% year-over-year to $350.9 million. They exceeded the high end of their guidance range for the first quarter with revenue of $94.3 million and non-GAAP loss from operations of $(3.9) million.
ARR of $350.9 million, a 31% increase year-over-year.
Revenue of $94.3 million, a 29% increase year-over-year, with a 90% recurring revenue mix.
Total customer growth of 14% year-over-year.
Products revenue of $87.5 million, a 33% year-over-year increase.
Rapid7
Rapid7
Rapid7 Revenue by Segment
Rapid7 Revenue by Geographic Location
Revenue by Segment
Product Subscriptions Revenue
CapyFin.comProfessional Services Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comRest of World Revenue
CapyFin.com Forward Guidance
Rapid7 anticipates annualized recurring revenue, revenue, non-GAAP income (loss) from operations, and non-GAAP net (loss) income per share to be in the following ranges for Q2 2020: ARR of $387.0 to $407.0 million, Revenue of $94.6 to $96.2 million, Non-GAAP income (loss) from operations of $1.0 to $2.0 million, and Non-GAAP net (loss) income per share of $(0.02) to $0.00.
Positive Outlook
- Second Quarter 2020 Annualized recurring revenue between $387.0 to $407.0 million.
- Second Quarter 2020 revenue between $94.6 to $96.2 million.
- Second Quarter 2020 Non-GAAP income (loss) from operations between $1.0 to $2.0 million.
- Second Quarter 2020 Non-GAAP net (loss) income per share between $(0.02) to $0.00.
- Full-Year 2020 guidance includes the anticipated contribution from the acquisition of DivvyCloud as of May 1, 2020.
Challenges Ahead
- Guidance for the second quarter and full-year 2020 does not include any potential impact of foreign exchange gains or losses.
- Fluctuations in Rapid7’s quarterly operating results may be particularly pronounced in the current economic environment due to the uncertainty caused by the current COVID-19 pandemic.
- The drivers of Rapid7’s actual financial performance will be a function of how long the economy remains closed and at what pace it recovers when it reopens.
- The guidance is based on a number of assumptions, estimates and expectations as of the date of this press release and is inherently subject to significant business, economic and competitive uncertainties and contingencies.
- Rapid7 undertakes no obligation to update guidance after this date.
Revenue & Expenses
Visualization of income flow from segment revenue to net income