Rapid7's earnings call highlighted positive momentum in the Detection and Response business and strong profitability improvements, driven by effective partner ecosystem sales and international revenue growth. However, challenges persist with elongated deal cycles and modest pressure on ARR growth due to customer budget constraints. The overall sentiment leans towards positive, given the notable achievements and strategic progress despite some headwinds.

Company Guidance

During Rapid7's Q3 2024 earnings call, the company reported ending the quarter with $823 million in Annual Recurring Revenue (ARR), reflecting a 6% year-over-year growth. The Detection and Response business was highlighted as a significant growth driver, contributing to the majority of growth, with ARR per customer increasing by 4% to $71,000. Despite longer deal cycles impacting new ARR slightly, the company maintained its focus on larger deals, particularly in North America. The revenue for the quarter was $215 million, an 8% increase from the prior year, while international revenue grew 17% and now accounts for nearly a quarter of total revenue. Operating income exceeded expectations at $44 million, resulting in a 21% operating margin. Looking forward, Rapid7 adjusted its full-year ARR guidance to a range of $835 million to $845 million and anticipates total revenue growth of 8% for the year. The company also provided an early outlook for 2025, suggesting a flat to mild acceleration in ARR growth from the 2024 exit rate, while continuing to prioritize profitability and strategic growth initiatives.

Record ARR Achievement

Rapid7 ended the third quarter of 2024 with $823 million in ARR, representing 6% growth over the prior year.

Growth in Detection and Response

The Detection and Response business continues to drive healthy momentum with robust pipeline and increased average ARR per customer for consolidated offerings.

International Revenue Expansion

International revenue grew 17% year-over-year and now represents nearly 25% of total revenue.

Strong Partner Ecosystem

90% of new ARR bookings were sold through the partner ecosystem, marking significant progress in partner-driven sales.

Profitability Improvements

Operating income of $44 million exceeded expectations, representing a 21% operating margin, with free cash flow of $39 million for the quarter.

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Rapid7 (GB:0KTX) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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GB:0KTX Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 06, 2018	2018 (Q2)	- / -0.13	-0.14	7.14% (+0.01)	―	―
Nov 06, 2018	2018 (Q3)	- / -0.04	-0.15	73.33% (+0.11)	―	―
Feb 07, 2019	2018 (Q4)	- / -0.05	-0.17	70.59% (+0.12)	―	―
May 02, 2019	2019 (Q1)	- / 0.02	-0.19	110.53% (+0.21)	―	―
Aug 01, 2019	2019 (Q2)	- / 0.02	-0.13	115.38% (+0.15)	―	―
Nov 05, 2019	2019 (Q3)	- / 0.01	-0.04	125.00% (+0.05)	―	―
Feb 10, 2020	2019 (Q4)	- / 0.03	-0.05	160.00% (+0.08)	―	―
May 07, 2020	2020 (Q1)	- / -0.09	0.02	-550.00% (-0.11)	―	―
Aug 06, 2020	2020 (Q2)	- / 0.05	0.02	150.00% (+0.03)	―	―
Nov 04, 2020	2020 (Q3)	- / 0.00	0.01	―	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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GB:0KTX Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 06, 2024	$41.71	$41.47	-0.58%
Aug 06, 2024	$33.43	$36.56	+9.36%
May 07, 2024	$46.14	$36.74	-20.38%
Feb 07, 2024	$58.20	$57.18	-1.75%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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