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Mar 31, 2022

Rapid7 Q1 2022 Earnings Report

Rapid7's financial performance was driven by momentum across security transformation and vulnerability management solutions, with sustained ARR growth.

Key Takeaways

Rapid7 announced strong first quarter results, driven by demand for its security operations platform. The company sustained year-over-year ARR growth of 38% and generated positive free cash flow.

Annualized recurring revenue (ARR) reached $627 million, a 38% increase year-over-year.

Total revenue was $157 million, up 34% year-over-year.

Products revenue was $149 million, up 36% year-over-year.

Total customer growth was 16% year-over-year.

Total Revenue
$157M
Previous year: $117M
+34.0%
EPS
-$0.16
Previous year: -$0.03
+433.3%
Annualized Recurring Revenue
$627M
Previous year: $456M
+37.6%
Number of customers
10.41K
Previous year: 8.95K
+16.3%
ARR per customer
$60.3K
Previous year: $51
+118135.3%
Gross Profit
$106M
Previous year: $81.2M
+30.7%
Cash and Equivalents
$141M
Previous year: $504M
-71.9%
Free Cash Flow
$3.83M
Previous year: $17.9M
-78.6%
Total Assets
$1.27B
Previous year: $1.22B
+4.2%

Rapid7

Rapid7

Rapid7 Revenue by Segment

Rapid7 Revenue by Geographic Location

Forward Guidance

Rapid7 anticipates annualized recurring revenue, revenue, non-GAAP income from operations, non-GAAP net (loss) income per share and free cash flow to be in the following ranges:

Positive Outlook

  • Second Quarter 2022 Annualized recurring revenue $740 to $750 million
  • Second Quarter 2022 Revenue $163 to $165 million
  • Second Quarter 2022 Non-GAAP income from operations $0 to $2 million
  • Second Quarter 2022 Free cash flow $40 to $45 million
  • Full-Year 2022 Revenue $686 to $692 million

Challenges Ahead

  • Second Quarter 2022 Year-over-year ARR growth 24% to 25%
  • Second Quarter 2022 Year-over-year Revenue growth 29% to 31%
  • Second Quarter 2022 Non-GAAP net (loss) income per share $(0.07) to $(0.03)
  • Full-Year 2022 Year-over-year Revenue growth 28% to 29%
  • Full-Year 2022 Non-GAAP income from operations $17 to $24 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income