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Mar 31
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.
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 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.
- GAAP net loss anticipated for the second quarter and full year 2025.
- Guidance for Q2 2025 does not include potential impact of foreign exchange gains or losses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income