NASDAQ$RPD

Rapid7 Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Rapid7 had a solid start to 2020, exceeding revenue guidance and strengthening the balance sheet.

Rapid7 announced its Q1 2020 financial results, reporting revenue of $94.3 million, a 29% year-over-year increase. The company's ARR grew by 31% year-over-year to $350.9 million. They exceeded the high end of their guidance range for the first quarter with revenue of $94.3 million and non-GAAP loss from operations of $(3.9) million.

  • ARR of $350.9 million, a 31% increase year-over-year.
  • Revenue of $94.3 million, a 29% increase year-over-year, with a 90% recurring revenue mix.
  • Total customer growth of 14% year-over-year.
  • Products revenue of $87.5 million, a 33% year-over-year increase.

Headline financials

Total Revenue

$94.3M

Previous: $73.2M+28.9%
EPS (adj)

-$0.09

Previous: $0.02-550.0%
Annualized Recurring Revenue

$351M

Previous: $268M+30.8%
Capital Expenditures

-$2.76M

Previous: -$8.46M+67.4%
Free Cash Flow

-$25.7M

Previous: -$20.1M-27.5%
Net Income

-$22.9M

Previous: -$11.7M-96.4%
Operating Income

-$19.8M

Previous: -$9.74M-103.4%
Gross Profit

$66.6M

Previous: $53.2M+25.2%
Cash & Equivalents

$204M

Previous: $89.9M+127.5%
Total Assets

$634M

Previous: $564M+12.4%

Revenue & EPS history

Rapid7 · Revenue · Quarterly

$94.3M

Q1 2020+28.9%vs Q1 2019
Beat estimate in 3 of 16 quarters(19%)
ActualEstimate

Revenue by segment

Rapid7 · $94.3M total across 2 segments · Q1 2020

  • Product subscriptions
    $87.5M+33.0%
  • Professional services
    $6.79M-7.5%

Forward guidance

Rapid7 anticipates annualized recurring revenue, revenue, non-GAAP income (loss) from operations, and non-GAAP net (loss) income per share to be in the following ranges for Q2 2020: ARR of $387.0 to $407.0 million, Revenue of $94.6 to $96.2 million, Non-GAAP income (loss) from operations of $1.0 to $2.0 million, and Non-GAAP net (loss) income per share of $(0.02) to $0.00.

Tailwinds

  • Second Quarter 2020 Annualized recurring revenue between $387.0 to $407.0 million.
  • Second Quarter 2020 revenue between $94.6 to $96.2 million.
  • Second Quarter 2020 Non-GAAP income (loss) from operations between $1.0 to $2.0 million.
  • Second Quarter 2020 Non-GAAP net (loss) income per share between $(0.02) to $0.00.
  • Full-Year 2020 guidance includes the anticipated contribution from the acquisition of DivvyCloud as of May 1, 2020.

Headwinds

  • Guidance for the second quarter and full-year 2020 does not include any potential impact of foreign exchange gains or losses.
  • Fluctuations in Rapid7’s quarterly operating results may be particularly pronounced in the current economic environment due to the uncertainty caused by the current COVID-19 pandemic.
  • The drivers of Rapid7’s actual financial performance will be a function of how long the economy remains closed and at what pace it recovers when it reopens.
  • The guidance is based on a number of assumptions, estimates and expectations as of the date of this press release and is inherently subject to significant business, economic and competitive uncertainties and contingencies.
  • Rapid7 undertakes no obligation to update guidance after this date.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.9%

Avg return

Earnings day

-1.9%

Avg return

5 days after

-1.0%

Avg return

30 days after

50%

22 / 44 earnings

Positive

+13.7%

Q4 2015

Best reaction

-29.0%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.1%-4.8%+12.4%
Q4 2025-29.0%-30.9%-34.4%
Q3 2025-20.1%-21.1%-10.3%
Q1 2025-8.2%-11.3%-11.3%
Q4 2024-5.4%-7.1%-23.9%
Q3 2024+2.9%+3.2%+8.4%
Q2 2024+8.6%+8.1%+8.2%
Q1 2024-17.8%-18.1%-22.1%
Q4 2023+2.7%+6.6%-5.7%
Q3 2023+1.4%+5.6%+20.6%
Q2 2023+9.1%+20.7%+16.6%
Q1 2023-2.9%-5.4%-3.2%
Q4 2022-0.5%-1.9%-17.9%
Q3 2022-27.8%-35.9%-24.9%
Q2 2022-0.8%-1.6%-21.2%
Q1 2022-17.2%-29.6%-23.8%
Q4 2021+1.7%-1.6%+4.4%
Q3 2021+10.8%+13.9%-7.1%
Q2 2021-1.4%-1.8%+8.3%
Q1 2021-1.4%+3.3%+8.8%
Q4 2020+0.8%-1.4%-10.1%
Q3 2020+7.4%+8.1%+15.9%
Q2 2020-2.7%-6.4%+0.6%
Q1 2020+2.2%-0.9%+4.5%
Q4 2019-6.2%-8.5%-32.0%
Q3 2019-0.3%+1.5%+6.8%
Q2 2019-4.5%-8.6%-11.5%
Q1 2019+0.0%+0.7%-0.4%
Q4 2018+10.1%+14.0%+11.5%
Q3 2018+8.6%+1.6%-4.6%
Q2 2018+13.0%+10.4%+28.9%
Q1 2018+2.0%-0.3%+2.9%
Q4 2017-1.6%+1.9%+13.0%
Q3 2017+7.4%+5.3%+4.7%
Q2 2017+0.1%+3.3%+12.9%
Q1 2017+4.8%+1.7%-0.2%
Q4 2016+10.8%+20.3%+17.1%
Q3 2016-16.6%-15.5%-7.4%
Q2 2016+8.8%+8.8%+27.4%
Q1 2016-4.5%
Q4 2015+13.7%
Q3 2014-3.3%
Q3 2015-5.3%
Q2 2015+7.9%
Q4 2014
Q2 2014
Q1 2014

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