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Dec 31, 2024
Rapid7 Q4 2024 Earnings Report
Rapid7 reported a 5% increase in total revenue for the fourth quarter of 2024, reaching $216.26 million, with product subscriptions revenue growing by 6% to $206.33 million.
Key Takeaways
Rapid7 concluded 2024 with strong financial performance, achieving $840 million in ARR and over $150 million in free cash flow. The company's strategic focus on innovation, scaling, and customer consolidation contributed to its success, with notable momentum in Managed Detection and Response and the launch of the Exposure Command platform.
Annualized recurring revenue (ARR) increased by 4% year-over-year to $840 million.
Total revenue for Q4 2024 was $216.26 million, a 5% increase year-over-year.
Product subscriptions revenue grew by 6% year-over-year to $206.33 million.
Full-year GAAP operating income was $35 million, and full-year non-GAAP operating income was $164 million.
Rapid7
Rapid7
Rapid7 Revenue by Segment
Rapid7 Revenue by Geographic Location
Revenue by Segment
Product Subscriptions Revenue
CapyFin.comProfessional Services Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comRest of World Revenue
CapyFin.com Forward Guidance
Rapid7 anticipates continued growth in ARR, revenue, non-GAAP income from operations, and non-GAAP net income per share for both the first quarter and full-year 2025, with free cash flow expected to be approximately $135 million for the full year.
Positive Outlook
- Anticipated ARR for full-year 2025 is between $870 million and $890 million, indicating continued growth.
- Full-year 2025 revenue is projected to be between $860 million and $870 million, representing a 2% to 3% year-over-year growth.
- Non-GAAP income from operations for full-year 2025 is expected to be between $125 million and $135 million.
- Non-GAAP net income per share for full-year 2025 is anticipated to be between $1.72 and $1.85.
- Free cash flow for full-year 2025 is estimated at approximately $135 million, demonstrating strong cash generation.
Challenges Ahead
- First quarter 2025 revenue growth is projected to be modest, between 1% and 2% year-over-year.
- Anticipated GAAP loss from operations for Q1 2025 is between -$10 million and -$8 million.
- Anticipated GAAP net loss for Q1 2025 is between -$11 million and -$9 million.
- Anticipated GAAP net loss per share for Q1 2025 is between -$0.15 and -$0.12.
- The guidance does not include any potential impact of foreign exchange gains or losses, which could affect actual results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income