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Sep 30, 2021

Rapid7 Q3 2021 Earnings Report

Rapid7 experienced growth in ARR, revenue, and customer base, driven by demand for security transformation solutions and the acquisition of IntSights.

Key Takeaways

Rapid7 announced its Q3 2021 financial results, reporting a significant increase in annualized recurring revenue (ARR) of $550 million, a 38% increase year-over-year. Total revenue was $139.9 million, up 33% year-over-year, and the company saw a 17% increase in total customers and an 18% increase in ARR per customer.

ARR reached $550 million, a 38% increase year-over-year.

Revenue increased to $139.9 million, up 33% year-over-year.

Total customer growth was 17% year-over-year.

ARR per customer grew by 18% year-over-year.

Total Revenue
$140M
Previous year: $105M
+33.1%
EPS
$0.06
Previous year: -$0.498
-112.0%
Annualized Recurring Revenue
$550M
Previous year: $399M
+38.0%
Number of customers
9.91K
Previous year: 9.35K
+6.0%
ARR per customer
$55.5
Previous year: $42.7K
-99.9%
Gross Profit
$96.4M
Previous year: $74M
+30.2%
Cash and Equivalents
$227M
Previous year: $239M
-5.1%
Free Cash Flow
$14.3M
Previous year: $7.91M
+81.2%
Total Assets
$1.26B
Previous year: $867M
+45.5%

Rapid7

Rapid7

Rapid7 Revenue by Segment

Rapid7 Revenue by Geographic Location

Forward Guidance

Rapid7 anticipates annualized recurring revenue to be approximately $586 million and revenue between $144.9 million and $146.5 million for the fourth quarter of 2021. They also estimate a non-GAAP loss from operations of $(6.7) million and a non-GAAP net loss per share of $(0.18). Free cash flow is expected to be approximately $25.0 million.

Positive Outlook

  • Annualized recurring revenue approximately $586 million
  • Revenue between $144.9 million and $146.5 million
  • Free cash flow approximately $25.0 million

Challenges Ahead

  • Non-GAAP loss from operations $(6.7) million
  • Non-GAAP net loss per share $(0.18)

Revenue & Expenses

Visualization of income flow from segment revenue to net income