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Mar 31, 2025
Rapid7 Q1 2025 Earnings Report
Rapid7 announced financial results for the first quarter ended March 31, 2025.
Key Takeaways
Rapid7 reported a slower start to 2025 with total revenue up 3% year-over-year and annualized recurring revenue increasing 4%. GAAP operating loss was reported, while non-GAAP operating income showed profitability. The company generated positive free cash flow.
ARR grew 4% year-over-year to $837 million.
Total revenue increased 3% year-over-year to $210 million.
GAAP operating loss was $0.1 million, compared to GAAP operating income of $9.7 million in the prior year.
Free cash flow was $25 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Rapid7 provided guidance for the second quarter and full year 2025, anticipating growth in ARR and revenue, along with positive non-GAAP income from operations, non-GAAP net income per share, and free cash flow.
Positive Outlook
- Anticipated ARR growth of 1% to 5% for the full year 2025.
- Expected revenue growth of 1% to 2% for both Q2 and the full year 2025.
- Forecasted non-GAAP income from operations between $30 million and $32 million for Q2 2025.
- Projected non-GAAP income from operations between $125 million and $135 million for the full year 2025.
- Anticipated free cash flow between $125 million and $135 million for the full year 2025.
Challenges Ahead
- Guidance reflects a slower start to 2025 than anticipated.
- Operating in a more uncertain macroeconomic environment.
- GAAP operating loss anticipated for the full year 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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