•
Mar 31, 2021

Rapid7 Q1 2021 Earnings Report

Rapid7 reported strong financial results for Q1 2021, demonstrating accelerated ARR growth and strong free cash flow dynamics.

Key Takeaways

Rapid7 announced a strong start to 2021 with a 30% year-over-year increase in ARR and solid free cash flow. The company's Q1 revenue reached $117.5 million, a 24% increase year-over-year, driven by a 25% increase in product revenue. Rapid7 is focused on delivering best-in-class security solutions to meet customers' evolving needs.

ARR increased by 30% year-over-year, reaching $455.8 million.

Revenue increased by 24% year-over-year to $117.5 million.

Product revenue increased by 25% year-over-year to $109.3 million.

Customer growth increased by 11% year-over-year.

Total Revenue
$117M
Previous year: $94.3M
+24.5%
EPS
-$0.03
Previous year: -$0.09
-66.7%
Annualized Recurring Revenue
$456M
Previous year: $351M
+29.9%
Number of customers
8.95K
Previous year: 9.02K
-0.9%
ARR per customer
$51
Previous year: $38.9K
-99.9%
Gross Profit
$81.2M
Previous year: $66.6M
+21.8%
Cash and Equivalents
$504M
Previous year: $204M
+146.4%
Free Cash Flow
$17.9M
Total Assets
$1.22B
Previous year: $634M
+93.0%

Rapid7

Rapid7

Rapid7 Revenue by Segment

Rapid7 Revenue by Geographic Location

Forward Guidance

Rapid7 anticipates ARR of approximately $530 million and revenue between $121.7 million and $123.3 million for the second quarter of 2021. For the full year 2021, Rapid7 anticipates revenue between $500.0 million and $506.0 million.

Positive Outlook

  • Anticipated non-GAAP income from operations of $4.3 million to $5.3 million for Q2 2021.
  • Anticipated non-GAAP net income per share of $0.02 to $0.03 for Q2 2021.
  • Anticipated free cash flow of approximately $15.0 million for Q2 2021.
  • Anticipated non-GAAP income from operations of $12.0 million to $16.0 million for the full year 2021.
  • Anticipated non-GAAP net income (loss) per share of $(0.03) to $0.04 for the full year 2021.

Challenges Ahead

  • Second quarter revenue year-over-year growth anticipated to be 23% to 25%.
  • Full year revenue year-over-year growth anticipated to be 22% to 23%.
  • Anticipated GAAP loss from operations between $(21.8) million and $(20.8) million for Q2 2021.
  • Anticipated GAAP net loss between $(26.3) million and $(25.3) million for Q2 2021.
  • Anticipated GAAP net loss per share, basic and diluted $(0.47) to $(0.46) for Q2 2021.