NASDAQ$RPD

Rapid7 Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Rapid7's Q2 2020 financial results were announced, demonstrating growth and profitability.

Rapid7 announced strong Q2 2020 results, exceeding expectations for both growth and profitability. ARR reached $379.9 million, driven by strong ARR per customer growth. The company also raised its full year guidance and expects to achieve non-GAAP operating profit for the full year.

  • ARR increased 31% year-over-year to $379.9 million.
  • Revenue grew 25% year-over-year to $98.9 million.
  • ARR per customer increased 20% year-over-year.
  • Non-GAAP operating income was $4.3 million.

Headline financials

Total Revenue

$98.9M

Previous: $79M+25.3%
EPS (adj)

$0.05

Previous: $0.02+150.0%
Annualized Recurring Revenue

$380M

Previous: $290M+31.0%
Capital Expenditures

-$3.96M

Previous: -$17.7M+77.7%
Free Cash Flow

-$25.4M

Previous: -$31.1M+18.3%
Net Income

-$21.5M

Previous: -$13.4M-60.0%
Operating Income

-$15.7M

Previous: -$12.2M-29.2%
Gross Profit

$69.8M

Previous: $56.8M+23.0%
Cash & Equivalents

$279M

Previous: $127M+120.7%
Total Assets

$860M

Previous: $636M+35.2%
Stock-Based Comp

$16.4M

No prior period

Revenue & EPS history

Rapid7 · Revenue · Quarterly

$98.9M

Q2 2020+25.3%vs Q2 2019
Beat estimate in 4 of 16 quarters(25%)
ActualEstimate

Revenue by segment

Rapid7 · $98.9M total across 2 segments · Q2 2020

  • Product subscriptions
    $92.4M+27.4%
  • Professional services
    $6.48M+1.6%

Forward guidance

Rapid7 anticipates annualized recurring revenue, revenue, non-GAAP income (loss) from operations, and non-GAAP net loss per share to be in the following ranges for Q3 2020 and full year 2020.

Tailwinds

  • Q3 2020 Annualized recurring revenue is expected to be between $404.0 million and $420.0 million.
  • Q3 2020 Revenue is expected to be between $100.7 million and $102.3 million.
  • Full Year 2020 Revenue is expected to be between $399.0 million and $403.0 million.
  • Full Year 2020 Non-GAAP income from operations is expected to be between $0.0 million and $2.0 million.
  • Q3 2020 Non-GAAP (loss) income from operations is expected to be between $(0.5) million and $0.5 million.

Headwinds

  • Q3 2020 Non-GAAP net loss per share is expected to be between $(0.06) and $(0.04).
  • Full Year 2020 Non-GAAP net loss per share is expected to be between $(0.14) and $(0.10).
  • Fluctuations in Rapid7’s quarterly operating results may be particularly pronounced in the current economic environment due to the uncertainty caused by the COVID-19 pandemic.
  • The primary set of drivers of Rapid7’s actual financial performance relative to the ranges provided will be a function of how long portions of the economy remain closed.
  • The guidance provided above 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.

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 Q2 2020

Historical avgQ2 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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