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Dec 31, 2020

Rapid7 Q4 2020 Earnings Report

Rapid7's Q4 2020 financial results were announced, demonstrating strong growth in ARR and revenue.

Key Takeaways

Rapid7 announced strong Q4 2020 results with annualized recurring revenue (ARR) of $432.9 million, a 28% increase year-over-year. Total revenue for the quarter was $113.2 million, up 23% year-over-year.

Annualized recurring revenue (ARR) reached $432.9 million, up 28% year-over-year.

The number of customers increased to 9,736, representing an 8% year-over-year growth.

ARR per customer grew by 18% year-over-year, reaching $44.5 thousand.

Total revenue was $113.2 million, a 23% increase compared to the previous year.

Total Revenue
$113M
Previous year: $91.6M
+23.5%
EPS
-$0.07
Previous year: $0.03
-333.3%
Annualized Recurring Revenue
$433M
Previous year: $339M
+27.8%
Number of customers
9.74K
Previous year: 9.02K
+7.9%
ARR per customer
$44.5K
Previous year: $37.5
+118566.7%
Gross Profit
$79.5M
Previous year: $66.3M
+19.9%
Cash and Equivalents
$174M
Previous year: $123M
+40.7%
Free Cash Flow
-$6.1M
Previous year: $5.45M
-211.9%
Total Assets
$913M
Previous year: $665M
+37.3%

Rapid7

Rapid7

Rapid7 Revenue by Segment

Rapid7 Revenue by Geographic Location

Forward Guidance

Rapid7 anticipates annualized recurring revenue, revenue, non-GAAP (loss) income from operations, and non-GAAP net (loss) income per share to be in the following ranges for the first quarter and full year 2021.

Positive Outlook

  • Revenue for Q1 2021 is expected to be between $113.2 million and $114.8 million.
  • Full-year 2021 revenue is projected to be between $488.0 million and $496.0 million.
  • Year-over-year revenue growth for Q1 2021 is expected to be between 20% and 22%.
  • Full-year 2021 year-over-year revenue growth is projected to be between 19% and 21%.
  • Non-GAAP (loss) income from operations for the full year 2021 is projected to be between $12.0 million and $16.0 million.

Challenges Ahead

  • Non-GAAP (loss) income from operations for Q1 2021 is expected to be between $(0.7) million and $0.3 million.
  • Non-GAAP net (loss) income per share for Q1 2021 is expected to be between $(0.08) and $(0.06).
  • Non-GAAP net (loss) income per share for the full year 2021 is projected to be between $(0.03) and $0.04.
  • The weighted average shares outstanding for Q1 2021 are expected to be 52.5 million.
  • The weighted average shares outstanding for the full year 2021 are expected to be between 53.5 million and 56.4 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income