NASDAQ$RPD
Rapid7 Inc · Q4 2022 earnings
Q4 2022 earnings · · Investor relations
Briefing
Rapid7's Q4 2022 financial performance exceeded expectations, driven by strong customer growth and platform adoption.
Rapid7 announced its Q4 and Full-Year 2022 financial results, with revenue, operating profit, and free cash flow exceeding targeted ranges. The company's ARR grew by 19% year-over-year, and total revenue increased by 22% for the quarter. Rapid7 is focused on driving profitable growth, with a positive outlook for free cash flow in 2023.
- Annualized recurring revenue (ARR) reached $714 million, a 19% increase year-over-year.
- Total revenue for the quarter was $184.5 million, up 22% year-over-year.
- ARR per customer grew by 12% year-over-year, indicating increased customer investment in the Insight platform.
- Rapid7 anticipates strong ARR and revenue growth in 2023, with a focus on profitable growth and free cash flow generation.
Headline financials
Revenue & EPS history
Rapid7 · Revenue · Quarterly
$184M
Revenue by segment
Rapid7 · $184M total across 2 segments · Q4 2022
- Product subscriptions$173M+22.4%93.7%
- Professional services$11.6M+11.7%6.3%
Forward guidance
Rapid7 anticipates annualized recurring revenue between $815 million and $825 million, revenue between $180 million and $182 million, and non-GAAP net income per share between $0.07 and $0.10 for Q1 2023. For the full year 2023, the company expects revenue between $771 million and $778 million, and non-GAAP net income per share between $0.81 and $0.88.
Tailwinds
- Anticipated annualized recurring revenue growth of 14% to 16% year-over-year for Q1 2023.
- Projected revenue growth of 14% to 16% year-over-year for Q1 2023.
- Expected non-GAAP income from operations between $5 million and $7 million for Q1 2023.
- Anticipated free cash flow of approximately $80 million for the full year 2023.
- Projected non-GAAP net income per share between $0.81 and $0.88 for the full year 2023.
Headwinds
- Guidance does not include any potential impact of foreign exchange gains or losses.
- Guidance is based on a number of assumptions, estimates, and expectations as of February 8, 2023.
- Guidance is inherently subject to significant business, economic, and competitive uncertainties and contingencies.
- The reconciliation does not reflect any items that are unknown at this time, such as litigation-related expenses.
- Estimates for Anticipated GAAP loss from operations, Anticipated GAAP net loss, and Anticipated GAAP net loss per share are expected to change.
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 Q4 2022
-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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