NASDAQ$RPD

Rapid7 Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Rapid7 experienced growth in ARR, revenue, and customer base, driven by demand for security transformation solutions and the acquisition of IntSights.

Rapid7 announced its Q3 2021 financial results, reporting a significant increase in annualized recurring revenue (ARR) of $550 million, a 38% increase year-over-year. Total revenue was $139.9 million, up 33% year-over-year, and the company saw a 17% increase in total customers and an 18% increase in ARR per customer.

  • ARR reached $550 million, a 38% increase year-over-year.
  • Revenue increased to $139.9 million, up 33% year-over-year.
  • Total customer growth was 17% year-over-year.
  • ARR per customer grew by 18% year-over-year.

Headline financials

Total Revenue

$140M

Previous: $105M+33.1%
EPS (adj)

$0.06

Previous: -$0.50+112.0%
Annualized Recurring Revenue

$550M

Previous: $399M+38.0%
Capital Expenditures

-$4.84M

Previous: -$7.13M+32.1%
Free Cash Flow

-$42.5M

Previous: -$32.7M-30.2%
Net Income

-$37.7M

Previous: -$25.5M-47.6%
Operating Income

-$34.3M

Previous: -$17.9M-91.5%
Gross Profit

$96.4M

Previous: $74M+30.2%
Cash & Equivalents

$227M

Previous: $239M-5.1%
Total Assets

$1.26B

Previous: $867M+45.5%
Stock-Based Comp

$29.2M

Previous: $17.1M+70.5%

Revenue & EPS history

Rapid7 · Revenue · Quarterly

$140M

Q3 2021+33.1%vs Q3 2020
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Rapid7 · $140M total across 2 segments · Q3 2021

  • Product subscriptions
    $131M
  • Professional services
    $8.75M+34.2%

Forward guidance

Rapid7 anticipates annualized recurring revenue to be approximately $586 million and revenue between $144.9 million and $146.5 million for the fourth quarter of 2021. They also estimate a non-GAAP loss from operations of $(6.7) million and a non-GAAP net loss per share of $(0.18). Free cash flow is expected to be approximately $25.0 million.

Tailwinds

  • Annualized recurring revenue approximately $586 million
  • Revenue between $144.9 million and $146.5 million
  • Free cash flow approximately $25.0 million

Headwinds

  • Non-GAAP loss from operations $(6.7) million
  • Non-GAAP net loss per share $(0.18)

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 Q3 2021

Historical avgQ3 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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