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Sep 30, 2023
Rapid7 Q3 2023 Earnings Report
Rapid7's Q3 2023 results showcased strong ARR growth and momentum in consolidated offerings.
Key Takeaways
Rapid7 reported a 13% year-over-year increase in total revenue, reaching $199 million, and an ARR of $777 million, a 14% increase year-over-year. The company's consolidated offerings for risk and threat management contributed over 40% of new business during the quarter. Rapid7 is reiterating its 2023 free cash flow target and anticipates doubling free cash flow in 2024.
Annualized recurring revenue (ARR) reached $777 million, a 14% increase year-over-year.
Total revenue grew to $199 million, up 13% year-over-year, with product revenue at $190 million, up 14% year-over-year.
GAAP operating loss was $16 million, while non-GAAP operating income was $37 million.
In October, Rapid7 announced that its Managed Detection and Response (“MDR”) service has expanded to include multi-layered endpoint protection, adding next-generation antivirus (“NGAV”) to Velociraptor’s digital forensics and incident response (DFIR) capabilities to proactively prevent breaches.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Rapid7 anticipates for the fourth quarter of 2023 ARR between $800 million and $805 million, revenue between $200 million and $202 million, non-GAAP income from operations between $33 million and $35 million, non-GAAP net income per share between $0.47 and $0.49, and free cash flow of approximately $80 million.
Positive Outlook
- Annualized recurring revenue between $800 million and $805 million.
- Year-over-year ARR growth of 12% to 13%.
- Revenue between $200 million and $202 million.
- Non-GAAP income from operations between $33 million and $35 million.
- Free cash flow approximately $80 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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