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Jun 30, 2021

Rapid7 Q2 2021 Earnings Report

Rapid7's Insight Platform drove strong demand, resulting in significant ARR growth and strategic acquisition.

Key Takeaways

Rapid7 announced strong second-quarter results, with revenue up 28% year-over-year and ARR growing by 29%. The acquisition of IntSights was completed in July, enhancing the Insight Platform's threat intelligence capabilities. The company also provided guidance for the third quarter and full year, including contributions from the IntSights acquisition.

ARR reached $488.9 million, a 29% increase year-over-year.

Revenue totaled $126.4 million, up 28% year-over-year.

Product revenue grew by 29% year-over-year, reaching $119.1 million.

Total customers increased by 13% year-over-year.

Total Revenue
$126M
Previous year: $98.9M
+27.8%
EPS
$0.07
Previous year: $0.05
+40.0%
Annualized Recurring Revenue
$489M
Previous year: $380M
+28.7%
Number of customers
9.32K
Previous year: 9.14K
+1.9%
ARR per customer
$52.5
Previous year: $41.6K
-99.9%
Gross Profit
$87.1M
Previous year: $69.8M
+24.7%
Cash and Equivalents
$494M
Previous year: $279M
+76.7%
Free Cash Flow
$5.04M
Previous year: -$757K
-765.8%
Total Assets
$1.24B
Previous year: $860M
+44.2%

Rapid7

Rapid7

Rapid7 Revenue by Segment

Rapid7 Revenue by Geographic Location

Forward Guidance

Rapid7 anticipates annualized recurring revenue to be approximately $576.0 million. Revenue is expected to be between $133.4 to $135.0 million. Free cash flow is expected to be approximately $20.0 million.

Positive Outlook

  • Annualized recurring revenue approximately $576.0 million
  • Revenue $133.4 to $135.0 million
  • Year-over-year growth 27 %to28 %
  • Free cash flow Approximately $20.0 million

Challenges Ahead

  • Non-GAAP (loss) income from operations $(0.5) million
  • Non-GAAP net loss per share $(0.07)
  • Weighted average shares outstanding, basic and diluted 56.1

Revenue & Expenses

Visualization of income flow from segment revenue to net income