NASDAQ$RPD

Rapid7 Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Rapid7 reported a 5% increase in total revenue for the fourth quarter of 2024, reaching $216.26 million, with product subscriptions revenue growing by 6% to $206.33 million.

Rapid7 concluded 2024 with strong financial performance, achieving $840 million in ARR and over $150 million in free cash flow. The company's strategic focus on innovation, scaling, and customer consolidation contributed to its success, with notable momentum in Managed Detection and Response and the launch of the Exposure Command platform.

  • Annualized recurring revenue (ARR) increased by 4% year-over-year to $840 million.
  • Total revenue for Q4 2024 was $216.26 million, a 5% increase year-over-year.
  • Product subscriptions revenue grew by 6% year-over-year to $206.33 million.
  • Full-year GAAP operating income was $35 million, and full-year non-GAAP operating income was $164 million.

Headline financials

Total Revenue

$216M

Previous: $205M+5.4%
EPS (adj)

$0.48

Previous: $0.72-33.3%
Capital Expenditures

-$4.93M

Previous: -$3.21M-53.5%
Free Cash Flow

$58.8M

No prior period
Net Income

$2.17M

Previous: $20M-89.2%
Operating Income

$7.28M

Previous: $10.9M-33.4%
Gross Profit

$150M

Previous: $146M+3.3%
R&D Expense

$45.5M

No prior period

Revenue & EPS history

Rapid7 · Revenue · Quarterly

$216M

Q4 2024+5.4%vs Q4 2023
Beat estimate in 15 of 15 quarters(100%)
ActualEstimate

Revenue by segment

Rapid7 · $199M total across 2 segments · Q3 2023

  • Product subscriptions
    $190M+14.0%
  • Professional services
    $8.97M-3.3%

Forward guidance

Rapid7 anticipates continued growth in ARR, revenue, non-GAAP income from operations, and non-GAAP net income per share for both the first quarter and full-year 2025, with free cash flow expected to be approximately $135 million for the full year.

Tailwinds

  • Anticipated ARR for full-year 2025 is between $870 million and $890 million, indicating continued growth.
  • Full-year 2025 revenue is projected to be between $860 million and $870 million, representing a 2% to 3% year-over-year growth.
  • Non-GAAP income from operations for full-year 2025 is expected to be between $125 million and $135 million.
  • Non-GAAP net income per share for full-year 2025 is anticipated to be between $1.72 and $1.85.
  • Free cash flow for full-year 2025 is estimated at approximately $135 million, demonstrating strong cash generation.

Headwinds

  • First quarter 2025 revenue growth is projected to be modest, between 1% and 2% year-over-year.
  • Anticipated GAAP loss from operations for Q1 2025 is between -$10 million and -$8 million.
  • Anticipated GAAP net loss for Q1 2025 is between -$11 million and -$9 million.
  • Anticipated GAAP net loss per share for Q1 2025 is between -$0.15 and -$0.12.
  • The guidance does not include any potential impact of foreign exchange gains or losses, which could affect actual results.

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 2024

Historical avgQ4 2024

-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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