Rapid7 Q1 2020 Earnings Report
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
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