NASDAQ$RPD

Rapid7 Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Rapid7's financial performance was driven by momentum across security transformation and vulnerability management solutions, with sustained ARR growth.

Rapid7 announced strong first quarter results, driven by demand for its security operations platform. The company sustained year-over-year ARR growth of 38% and generated positive free cash flow.

  • Annualized recurring revenue (ARR) reached $627 million, a 38% increase year-over-year.
  • Total revenue was $157 million, up 34% year-over-year.
  • Products revenue was $149 million, up 36% year-over-year.
  • Total customer growth was 16% year-over-year.

Headline financials

Total Revenue

$157M

Previous: $117M+34.0%
EPS (adj)

-$0.16

Previous: -$0.03-433.3%
Annualized Recurring Revenue

$627M

Previous: $456M+37.6%
Capital Expenditures

-$3.05M

Previous: -$972K-214.1%
Free Cash Flow

-$48.1M

Previous: -$30.8M-55.9%
Net Income

-$45M

Previous: -$29.8M-50.8%
Operating Income

-$40.4M

Previous: -$23.1M-74.7%
Gross Profit

$106M

Previous: $81.2M+30.7%
Cash & Equivalents

$141M

Previous: $504M-71.9%
Total Assets

$1.27B

Previous: $1.22B+4.2%
Stock-Based Comp

$28.9M

Previous: $20.9M+38.6%

Revenue & EPS history

Rapid7 · Revenue · Quarterly

$157M

Q1 2022+34%vs Q1 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Rapid7 · $157M total across 2 segments · Q1 2022

  • Product subscriptions
    $149M
  • Professional services
    $8.36M+2.4%

Forward guidance

Rapid7 anticipates annualized recurring revenue, revenue, non-GAAP income from operations, non-GAAP net (loss) income per share and free cash flow to be in the following ranges:

Tailwinds

  • Second Quarter 2022 Annualized recurring revenue $740 to $750 million
  • Second Quarter 2022 Revenue $163 to $165 million
  • Second Quarter 2022 Non-GAAP income from operations $0 to $2 million
  • Second Quarter 2022 Free cash flow $40 to $45 million
  • Full-Year 2022 Revenue $686 to $692 million

Headwinds

  • Second Quarter 2022 Year-over-year ARR growth 24% to 25%
  • Second Quarter 2022 Year-over-year Revenue growth 29% to 31%
  • Second Quarter 2022 Non-GAAP net (loss) income per share $(0.07) to $(0.03)
  • Full-Year 2022 Year-over-year Revenue growth 28% to 29%
  • Full-Year 2022 Non-GAAP income from operations $17 to $24 million

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 2022

Historical avgQ1 2022

-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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