Rapid7, Inc. (RPD) Tops Q3 EPS by 4c, Revenues Beat; Offers FY20 Revenue Guidance Above Consensus, Raises FY20 ARR Outlook

Rapid7, Inc. (NASDAQ: RPD) reported Q3 EPS of $0.00, $0.04 better than the analyst estimate of ($0.04). Revenue for the quarter came in at $105.1 million versus the consensus estimate of $101.86 million.

• Annualized recurring revenue (ARR) of $398.7 million, an increase of 29% year-over-year
• Revenue of $105.1 million, 26% year-over-year growth; Products revenue of $98.6 million, 29% year-over-year growth
• GAAP operating loss of $(17.9) million; Non-GAAP operating income of $2.4 million
• Raising full year 2020 guidance for ARR and revenue

"Rapid7 is pleased to report strong Q3 performance that exceeded growth and profit expectations thanks to solid execution by our team. We ended the quarter with total ARR of $398.7 million dollars, up 29% year-over-year, led by continued strong demand for our security transformation solutions and healthy growth in vulnerability management," said Corey Thomas, Chairman and CEO of Rapid7.

"As organizations lean into the cloud, they are engaging with Rapid7 to modernize and extend their security architectures in the cloud with our Insight Platform."

GUIDANCE:

Rapid7, Inc. sees Q4 2020 EPS of ($0.09)-($0.07), versus the consensus of ($0.04).

Rapid7, Inc. sees FY2020 EPS of ($0.12)-($0.10), versus the consensus of ($0.11). Rapid7, Inc. sees FY2020 revenue of $406.2-407.8 million, versus the consensus of $401.47 million.

The guidance provided above is forward-looking in nature. Actual results may differ materially. See the cautionary note regarding “Forward-Looking Statements” below. Guidance for the fourth quarter and full-year 2020 does not include any potential impact of foreign exchange gains or losses. The weighted average shares outstanding for the fourth quarter and full-year 2020 represent basic shares outstanding given our projected non-GAAP net loss. In addition, fluctuations in Rapid7’s quarterly operating results may be particularly pronounced in the current economic environment due to the uncertainty caused by, and the unprecedented nature of, the current COVID-19 pandemic, whose severity, duration and ultimate impact is difficult to predict at this time. The primary set of drivers of Rapid7’s actual financial performance relative to the ranges provided will be a function of the timing and pace of economic recovery in the global economy and whether there are broad regional or systematic closures as a result of a sustained pandemic resurgence. The guidance provided above is based on a number of assumptions, estimates and expectations as of the date of this press release and, while presented with numerical specificity, this guidance is inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond Rapid7's control and are based upon specific assumptions with respect to future business decisions or economic conditions, some of which may change. Rapid7 undertakes no obligation to update guidance after this date.

For earnings history and earnings-related data on Rapid7, Inc. (RPD) click here.

You May Also Be Interested In

• Gilead Sciences (GILD) Misses Q1 EPS by 288c
• Allison Transmission (ALSN) Tops Q1 EPS by 2c, Beats on Revenue; Offers FY24 Revenue Guidance
• Edwards Lifesciences (EW) Tops Q1 EPS by 2c; offers guidance