NASDAQ$RPD
Rapid7 Inc · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Rapid7's Q1 2023 results reflected strong momentum and efficiency improvements.
Rapid7 announced strong first quarter results with a 16% year-over-year increase in ARR to $728 million and total revenue of $183 million, up 16% year-over-year. The company's Threat Complete and Cloud Risk Complete offerings contributed significantly to new business. Rapid7 is focused on efficiency, which is evident in the company's strong first quarter profitability. The company is on track to achieve full-year growth objectives.
- ARR reached $728 million, a 16% increase year-over-year.
- Total revenue was $183 million, up 16% year-over-year, with products revenue at $174 million, up 17% year-over-year.
- GAAP operating loss was $24 million; Non-GAAP operating income was $11 million.
- Surpassed 11,000 customers globally while growing total ARR per customer by 9% year-over-year.
Headline financials
Revenue & EPS history
Rapid7 · Revenue · Quarterly
$183M
Revenue by segment
Rapid7 · $183M total across 2 segments · Q1 2023
- Product subscriptions$174M+16.6%94.9%
- Professional services$9.4M+12.5%5.1%
Forward guidance
Rapid7 anticipates for the second quarter of 2023 annualized recurring revenue between $815 million and $825 million, and revenue between $187 million and $189 million. For the full year 2023, Rapid7 anticipates revenue between $773 million and $779 million and free cash flow approximately $80 million.
Tailwinds
- Anticipated non-GAAP income from operations between $7 million and $9 million for Q2 2023.
- Anticipated non-GAAP net income per share between $0.09 and $0.12 for Q2 2023.
- Anticipated annualized recurring revenue between $815 million and $825 million for Q2 2023.
- Anticipated revenue between $187 million and $189 million for Q2 2023.
- Anticipated free cash flow approximately $80 million for the full year 2023.
Headwinds
- Anticipated GAAP loss from operations between $(32) million and $(30) million for Q2 2023.
- Anticipated GAAP net loss between $(34) million and $(32) million for Q2 2023.
- Anticipated GAAP net loss per share, basic and diluted between $(0.56) and $(0.53) for Q2 2023.
- Anticipated GAAP loss from operations between $(92) million and $(88) million for the full year 2023.
- The reconciliation does not reflect any items that are unknown at this time, such as non-ordinary course litigation-related expenses, which we are not able to predict without unreasonable effort due to their inherent uncertainty.
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 2023
-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
| Quarter | Report date | Reaction (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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