Rapid7 Q4 2021 Earnings Report
Key Takeaways
Rapid7 reported strong Q4 2021 results, with a 38% increase in ARR and eclipsing 10,000 customers globally. The company remains focused on enabling better security outcomes for its customers while driving durable growth and scaling profitability.
Annualized recurring revenue (ARR) reached $599.0 million, a 38% increase year-over-year.
Total revenue was $151.6 million, up 34% year-over-year.
The company grew to over 10,000 customers globally, marking an 18% increase year-over-year.
ARR per customer grew by 17% year-over-year, reaching $58.3 thousand.
Rapid7
Rapid7
Rapid7 Revenue by Segment
Rapid7 Revenue by Geographic Location
Forward Guidance
Rapid7 anticipates annualized recurring revenue between $740 million and $750 million, and revenue between $153 million and $155 million for Q1 2022. For the full year 2022, the company expects revenue between $682 million and $690 million and free cash flow between $40 million and $45 million.
Positive Outlook
- Annualized recurring revenue is projected to grow 24% to 25% year-over-year in Q1 2022.
- Revenue is expected to grow 30% to 32% year-over-year in Q1 2022.
- Full-year 2022 revenue is projected to grow 27% to 29% year-over-year.
- Non-GAAP income from operations is expected to be between $(7) million and $(5) million for Q1 2022.
- Full-year 2022 non-GAAP income from operations is expected to be between $17 million and $24 million.
Challenges Ahead
- Non-GAAP loss per share is expected to be between $(0.18) and $(0.15) for Q1 2022.
- Guidance does not include any potential impact of foreign exchange gains or losses.
- The weighted average shares outstanding for Q1 2022 represent basic shares outstanding given the projected non-GAAP net loss.
- Guidance is based on assumptions, estimates, and expectations as of February 9, 2022.
- The reconciliation does not reflect any items that are unknown at this time, such as acquisition-related and litigation-related expenses, which we are not able to predict without unreasonable effort due to their inherent uncertainty.
Revenue & Expenses
Visualization of income flow from segment revenue to net income