Rapid7, Inc. (RPD) falls as full-year revenue guidance disappoints

Rapid7, Inc. (NASDAQ: RPD) shares fell more than 5% ahead of Thursday's open on the back of its fourth-quarter earnings, with full-year revenue guidance disappointing.

The company's Q4 earnings were $0.72 per share, $0.24 better than the analyst estimate of $0.48 per share. Revenue for the quarter came in at $205.27 million versus the consensus estimate of $201.26 million.

“Rapid7 delivered solid results to end the year, exceeding our guided ranges on ARR, revenue, non-GAAP operating income, and free cash flow,” said Corey Thomas, chairman and CEO of Rapid7.

Thomas added that the company is focused on making platform and services investments in 2024 that position it to drive durable, long-term growth.

"Our sustained focus on driving efficient, profitable growth is reflected in our free cash flow outlook, which we expect to be at least $160 million for the full year,” he stated.

Looking ahead, Rapid7 sees its Q1 EPS from $0.52 to $0.55, well above the consensus of $0.40, with revenue for the period between $203 million and $205 million, versus the consensus of $204.7 million.

FY2024 EPS is seen from $2.10 to $2.21, again, well above the consensus of $1.81. However, FY2024 revenue is expected to be between $848 million and $856 million, below the $870.8 million consensus expectation.

By Sam Boughedda

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