Rapid7 Inc · Q3 2023 earnings

Briefing

Rapid7's Q3 2023 results showcased strong ARR growth and momentum in consolidated offerings.

Rapid7 reported a 13% year-over-year increase in total revenue, reaching $199 million, and an ARR of $777 million, a 14% increase year-over-year. The company's consolidated offerings for risk and threat management contributed over 40% of new business during the quarter. Rapid7 is reiterating its 2023 free cash flow target and anticipates doubling free cash flow in 2024.

• Annualized recurring revenue (ARR) reached $777 million, a 14% increase year-over-year.
• Total revenue grew to $199 million, up 13% year-over-year, with product revenue at $190 million, up 14% year-over-year.
• GAAP operating loss was $16 million, while non-GAAP operating income was $37 million.
• In October, Rapid7 announced that its Managed Detection and Response (“MDR”) service has expanded to include multi-layered endpoint protection, adding next-generation antivirus (“NGAV”) to Velociraptor’s digital forensics and incident response (DFIR) capabilities to proactively prevent breaches.

Headline financials

Revenue & EPS history

Rapid7 anticipates for the fourth quarter of 2023 ARR between $800 million and $805 million, revenue between $200 million and $202 million, non-GAAP income from operations between $33 million and $35 million, non-GAAP net income per share between $0.47 and $0.49, and free cash flow of approximately $80 million.