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Mar 31, 2023
Rapid7 Q1 2023 Earnings Report
Rapid7's Q1 2023 results reflected strong momentum and efficiency improvements.
Key Takeaways
Rapid7 announced strong first quarter results with a 16% year-over-year increase in ARR to $728 million and total revenue of $183 million, up 16% year-over-year. The company's Threat Complete and Cloud Risk Complete offerings contributed significantly to new business. Rapid7 is focused on efficiency, which is evident in the company's strong first quarter profitability. The company is on track to achieve full-year growth objectives.
ARR reached $728 million, a 16% increase year-over-year.
Total revenue was $183 million, up 16% year-over-year, with products revenue at $174 million, up 17% year-over-year.
GAAP operating loss was $24 million; Non-GAAP operating income was $11 million.
Surpassed 11,000 customers globally while growing total ARR per customer by 9% year-over-year.
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 for the second quarter of 2023 annualized recurring revenue between $815 million and $825 million, and revenue between $187 million and $189 million. For the full year 2023, Rapid7 anticipates revenue between $773 million and $779 million and free cash flow approximately $80 million.
Positive Outlook
- Anticipated non-GAAP income from operations between $7 million and $9 million for Q2 2023.
- Anticipated non-GAAP net income per share between $0.09 and $0.12 for Q2 2023.
- Anticipated annualized recurring revenue between $815 million and $825 million for Q2 2023.
- Anticipated revenue between $187 million and $189 million for Q2 2023.
- Anticipated free cash flow approximately $80 million for the full year 2023.
Challenges Ahead
- Anticipated GAAP loss from operations between $(32) million and $(30) million for Q2 2023.
- Anticipated GAAP net loss between $(34) million and $(32) million for Q2 2023.
- Anticipated GAAP net loss per share, basic and diluted between $(0.56) and $(0.53) for Q2 2023.
- Anticipated GAAP loss from operations between $(92) million and $(88) million for the full year 2023.
- The reconciliation does not reflect any items that are unknown at this time, such as non-ordinary course litigation-related expenses, which we are not able to predict without unreasonable effort due to their inherent uncertainty.
Revenue & Expenses
Visualization of income flow from segment revenue to net income