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Mar 31, 2024

Rapid7 Q1 2024 Earnings Report

Rapid7's Q1 2024 results reflect solid profitability and progress in threat detection and response solutions, despite ARR being below expectations due to a slower shift to the integrated risk offering.

Key Takeaways

Rapid7 announced its Q1 2024 financial results, featuring a 12% increase in total revenue to $205 million and an 11% rise in ARR to $807 million. The company's GAAP operating income was $11 million, with a non-GAAP operating income of $40 million. Free cash flow was reported at $28 million. The company reiterates its Free Cash Flow outlook of at least $160 million for the full year.

ARR increased by 11% year-over-year, reaching $807 million.

Total revenue grew by 12% year-over-year to $205 million.

Product subscriptions revenue increased by 13% year-over-year to $197 million.

GAAP operating income was $11 million; non-GAAP operating income was $40 million.

Total Revenue
$205M
Previous year: $183M
+12.0%
EPS
$0.55
Previous year: $0.16
+243.8%
Annualized Recurring Revenue
$807M
Previous year: $728M
+10.9%
Number of customers
11.46K
Previous year: 11.03K
+3.9%
ARR per customer
$70.4
Previous year: $66
+6.7%
Gross Profit
$144M
Previous year: $127M
+13.4%
Cash and Equivalents
$199M
Previous year: $206M
-3.4%
Free Cash Flow
$27.5M
Previous year: -$1.22M
-2358.7%
Total Assets
$1.49B
Previous year: $1.33B
+12.0%

Rapid7

Rapid7

Rapid7 Revenue by Segment

Rapid7 Revenue by Geographic Location

Forward Guidance

Rapid7 anticipates ARR between $850 million and $860 million, and revenue between $203 million and $205 million for Q2 2024. The company projects ARR between $850 million and $860 million, and revenue between $830 million and $836 million for the full year 2024.

Positive Outlook

  • Anticipated non-GAAP income from operations between $35 million and $37 million for Q2 2024.
  • Anticipated non-GAAP net income per share between $0.50 and $0.53 for Q2 2024.
  • Weighted average shares outstanding of 74.6 million for Q2 2024.
  • Anticipated non-GAAP income from operations between $150 million and $158 million for the full year 2024.
  • Anticipated non-GAAP net income per share between $2.10 and $2.21 for the full year 2024.

Revenue & Expenses

Visualization of income flow from segment revenue to net income