NASDAQ$RPD

Rapid7 Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Rapid7's Insight Platform drove strong demand, resulting in significant ARR growth and strategic acquisition.

Rapid7 announced strong second-quarter results, with revenue up 28% year-over-year and ARR growing by 29%. The acquisition of IntSights was completed in July, enhancing the Insight Platform's threat intelligence capabilities. The company also provided guidance for the third quarter and full year, including contributions from the IntSights acquisition.

  • ARR reached $488.9 million, a 29% increase year-over-year.
  • Revenue totaled $126.4 million, up 28% year-over-year.
  • Product revenue grew by 29% year-over-year, reaching $119.1 million.
  • Total customers increased by 13% year-over-year.

Headline financials

Total Revenue

$126M

Previous: $98.9M+27.8%
EPS (adj)

$0.07

Previous: $0.05+40.0%
Annualized Recurring Revenue

$489M

Previous: $380M+28.7%
Capital Expenditures

-$2.67M

Previous: -$3.96M+32.5%
Free Cash Flow

-$36.8M

Previous: -$25.4M-44.9%
Net Income

-$34.2M

Previous: -$21.5M-59.2%
Operating Income

-$21.9M

Previous: -$15.7M-39.4%
Gross Profit

$87.1M

Previous: $69.8M+24.7%
Cash & Equivalents

$494M

Previous: $279M+76.7%
Total Assets

$1.24B

Previous: $860M+44.2%
Stock-Based Comp

$23.8M

Previous: $16.4M+44.8%

Revenue & EPS history

Rapid7 · Revenue · Quarterly

$126M

Q2 2021+27.8%vs Q2 2020
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

Rapid7 · $126M total across 2 segments · Q2 2021

  • Product subscriptions
    $119M+28.9%
  • Professional services
    $7.27M+12.2%

Forward guidance

Rapid7 anticipates annualized recurring revenue to be approximately $576.0 million. Revenue is expected to be between $133.4 to $135.0 million. Free cash flow is expected to be approximately $20.0 million.

Tailwinds

  • Annualized recurring revenue approximately $576.0 million
  • Revenue $133.4 to $135.0 million
  • Year-over-year growth 27 %to28 %
  • Free cash flow Approximately $20.0 million

Headwinds

  • Non-GAAP (loss) income from operations $(0.5) million
  • Non-GAAP net loss per share $(0.07)
  • Weighted average shares outstanding, basic and diluted 56.1

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 2021

Historical avgQ2 2021

-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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