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Sep 30, 2020
Rapid7 Q3 2020 Earnings Report
Rapid7 reported strong Q3 performance, exceeding growth and profit expectations.
Key Takeaways
Rapid7 announced strong Q3 2020 financial results with revenue of $105.1 million, a 26% year-over-year growth, and an ARR of $398.7 million, up 29% year-over-year. The company is raising full-year 2020 guidance for ARR and revenue.
ARR reached $398.7 million, a 29% increase year-over-year.
Revenue totaled $105.1 million, reflecting a 26% year-over-year growth.
GAAP operating loss was $(17.9) million, while non-GAAP operating income was $2.4 million.
The company released its Cloud Identity and Access Management (IAM) Governance module for DivvyCloud.
Rapid7
Rapid7
Rapid7 Revenue by Segment
Rapid7 Revenue by Geographic Location
Revenue by Segment
Professional Services Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comRest of World Revenue
CapyFin.com Forward Guidance
Rapid7 anticipates annualized recurring revenue, revenue, non-GAAP income (loss) from operations, and non-GAAP net loss per share to be in the following ranges: Fourth Quarter 2020Full-Year 2020(dollars in millions)Annualized recurring revenue$418.0 to$422.0 Year-over-year growth23 %to25 %Revenue$107.9 to$109.5 $406.2 to$407.8 Year-over-year growth18 %to20 %24 %to25 %Non-GAAP (loss) income from operations$(1.8)to$(0.8)$1.0 to$2.0 Non-GAAP net loss per share$(0.09)to$(0.07)$(0.12)to$(0.10)Weighted average shares outstanding52.1 51.0
Positive Outlook
- Annualized recurring revenue is projected to be between $418.0 million and $422.0 million for Q4 2020.
- The year-over-year growth for ARR is expected to be between 23% and 25%.
- Revenue is anticipated to be between $107.9 million and $109.5 million for Q4 2020.
- Full-year 2020 revenue is projected to be between $406.2 million and $407.8 million.
- Year-over-year revenue growth is expected to be between 18% and 20% for Q4 2020 and between 24% and 25% for the full year.
Challenges Ahead
- Non-GAAP loss from operations is projected to be between $(1.8) million and $(0.8) million for Q4 2020.
- Non-GAAP net loss per share is expected to be between $(0.09) and $(0.07) for Q4 2020.
- Full-year 2020 non-GAAP income from operations is projected to be between $1.0 million and $2.0 million.
- Full-year 2020 non-GAAP net loss per share is expected to be between $(0.12) and $(0.10).
- The guidance does not reflect any items that are unknown at this time, such as acquisition-related expenses and litigation-related expenses for the fourth quarter of 2020, which we are not able to predict without unreasonable effort due to their inherent uncertainty.