•
Jun 30, 2022

Rapid7 Q2 2022 Earnings Report

Reported robust customer demand for security transformation solutions, driving ARR growth and total revenue increase.

Key Takeaways

Rapid7 announced strong second-quarter results, with annualized recurring revenue (ARR) reaching $658 million, a 35% increase year-over-year. Total revenue grew by 32% to $167 million, driven by robust customer demand for their security transformation solutions.

Annualized recurring revenue (ARR) reached $658 million, a 35% increase year-over-year.

Total revenue was $167 million, up 32% year-over-year, with products revenue at $159 million, up 34% year-over-year.

Total ARR per customer increased by 18% year-over-year.

Total customer growth was 14% year-over-year.

Total Revenue
$167M
Previous year: $126M
+32.5%
EPS
-$0.01
Previous year: $0.07
-114.3%
Annualized Recurring Revenue
$658M
Previous year: $489M
+34.6%
Number of customers
10.62K
Previous year: 9.32K
+14.1%
ARR per customer
$62
Previous year: $52.5
+18.1%
Gross Profit
$113M
Previous year: $87.1M
+29.9%
Cash and Equivalents
$163M
Previous year: $494M
-66.9%
Free Cash Flow
-$1.26M
Previous year: $5.04M
-125.0%
Total Assets
$1.29B
Previous year: $1.24B
+3.6%

Rapid7

Rapid7

Rapid7 Revenue by Segment

Rapid7 Revenue by Geographic Location

Forward Guidance

Rapid7 anticipates annualized recurring revenue, revenue, non-GAAP income from operations, non-GAAP net income per share and free cash flow to be in the following ranges:

Positive Outlook

  • Third Quarter 2022 Annualized recurring revenue to be between $740 million and $750 million
  • Third Quarter 2022 Revenue to be between $175 million and $177 million
  • Third Quarter 2022 Non-GAAP income from operations to be between $6 million and $8 million
  • Third Quarter 2022 Non-GAAP net income per share to be between $0.03 and $0.06
  • Third Quarter 2022 Free cash flow to be between $40 million and $45 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income