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Sep 30, 2024

Rapid7 Q3 2024 Earnings Report

Rapid7's Q3 2024 financial results were announced, demonstrating growth in key business areas and exceeding guided ranges for revenue and operating income.

Key Takeaways

Rapid7 announced positive momentum in Q3 2024, with revenue and operating income exceeding guided ranges. The company saw growth in its threat detection and response business and strong demand for its consolidated offerings. ARR increased by 6% year-over-year to $823 million, and total revenue grew by 8% to $215 million.

Annualized recurring revenue (ARR) reached $823 million, a 6% increase year-over-year.

Total revenue was $215 million, up 8% year-over-year, with product subscriptions revenue of $206 million, also up 8%.

GAAP operating income was $14 million, while non-GAAP operating income was $44 million.

Net cash provided by operating activities was $44 million, and free cash flow was $39 million.

Total Revenue
$215M
Previous year: $199M
+8.0%
EPS
$0.66
Previous year: $0.5
+32.0%
Annualized Recurring Revenue
$823M
Previous year: $777M
+6.0%
Number of customers
11.62K
Previous year: 11.41K
+1.8%
ARR per customer
$70.8K
Previous year: $68.1K
+4.0%
Gross Profit
$152M
Previous year: $141M
+7.5%
Cash and Equivalents
$223M
Previous year: $183M
+21.8%
Free Cash Flow
$38.5M
Previous year: -$582K
-6715.5%
Total Assets
$1.57B
Previous year: $1.4B
+12.5%

Rapid7

Rapid7

Rapid7 Revenue by Segment

Rapid7 Revenue by Geographic Location

Forward Guidance

Rapid7 anticipates for the fourth quarter of 2024, annualized recurring revenue between $835 million and $845 million, revenue between $211 million and $213 million, non-GAAP income from operations between $33 million and $35 million, non-GAAP net income per share between $0.48 and $0.51, and free cash flow between $145 million and $155 million. For the full year 2024, Rapid7 anticipates revenue between $839 million and $841 million, non-GAAP income from operations between $157 million and $159 million and non-GAAP net income per share between $2.28 and $2.31.

Positive Outlook

  • Annualized recurring revenue between $835 million and $845 million.
  • Revenue between $211 million and $213 million.
  • Non-GAAP income from operations between $33 million and $35 million.
  • Non-GAAP net income per share between $0.48 and $0.51.
  • Free cash flow between $145 million and $155 million.