Rapid7 Q4 2022 Earnings Report
Key Takeaways
Rapid7 announced its Q4 and Full-Year 2022 financial results, with revenue, operating profit, and free cash flow exceeding targeted ranges. The company's ARR grew by 19% year-over-year, and total revenue increased by 22% for the quarter. Rapid7 is focused on driving profitable growth, with a positive outlook for free cash flow in 2023.
Annualized recurring revenue (ARR) reached $714 million, a 19% increase year-over-year.
Total revenue for the quarter was $184.5 million, up 22% year-over-year.
ARR per customer grew by 12% year-over-year, indicating increased customer investment in the Insight platform.
Rapid7 anticipates strong ARR and revenue growth in 2023, with a focus on profitable growth and free cash flow generation.
Rapid7
Rapid7
Rapid7 Revenue by Segment
Rapid7 Revenue by Geographic Location
Forward Guidance
Rapid7 anticipates annualized recurring revenue between $815 million and $825 million, revenue between $180 million and $182 million, and non-GAAP net income per share between $0.07 and $0.10 for Q1 2023. For the full year 2023, the company expects revenue between $771 million and $778 million, and non-GAAP net income per share between $0.81 and $0.88.
Positive Outlook
- Anticipated annualized recurring revenue growth of 14% to 16% year-over-year for Q1 2023.
- Projected revenue growth of 14% to 16% year-over-year for Q1 2023.
- Expected non-GAAP income from operations between $5 million and $7 million for Q1 2023.
- Anticipated free cash flow of approximately $80 million for the full year 2023.
- Projected non-GAAP net income per share between $0.81 and $0.88 for the full year 2023.
Challenges Ahead
- Guidance does not include any potential impact of foreign exchange gains or losses.
- Guidance is based on a number of assumptions, estimates, and expectations as of February 8, 2023.
- Guidance is inherently subject to significant business, economic, and competitive uncertainties and contingencies.
- The reconciliation does not reflect any items that are unknown at this time, such as litigation-related expenses.
- Estimates for Anticipated GAAP loss from operations, Anticipated GAAP net loss, and Anticipated GAAP net loss per share are expected to change.
Revenue & Expenses
Visualization of income flow from segment revenue to net income