The earnings call reflects a mixed sentiment where Rapid7 experienced growth in key areas like detection and response and international revenue, while facing challenges in traditional vulnerability management and macroeconomic uncertainties. Despite exceeding revenue and income expectations, the company is undergoing a strategic shift to address market changes.

Company Guidance

During the Rapid7 fourth quarter 2024 earnings call, the company provided financial guidance for the fiscal year 2025, expecting annual recurring revenue (ARR) growth of 4% to 6%, reaching between $870 million to $890 million by year-end. This projection is primarily driven by the detection and response business, which ended 2024 with over $400 million in ARR and is growing in the mid-teens. Rapid7 also plans to reinvest up to $30 million into strategic growth initiatives, including expanding its managed detection and response (MDR) service capabilities and enhancing its exposure management offerings. For 2025, the company forecasts total revenue of $860 million to $870 million, with an operating income of $125 million to $135 million and free cash flow of approximately $135 million. The first quarter of 2025 is expected to see total revenue of $207 million to $209 million and operating income of $23 million to $25 million.

Revenue and Operating Income Exceed Expectations

Rapid7 ended 2024 with $840 million in ARR, meeting expectations and achieving 4% growth over the prior year. Revenue and operating income exceeded guided ranges, with over $150 million in free cash flow generated for the year.

Detection and Response Business Growth

The detection and response business experienced double-digit growth in 2024, reaching over $400 million in ARR. The average ARR per DNR customer is now approximately $100,000.

Risk and Exposure Management Momentum

The risk and exposure management business showed promising momentum with over 20% year-over-year growth in total risk and exposure management pipeline generation during the fourth quarter.

Cloud Security Milestone

A significant milestone in cloud security adoption was achieved with the release of Exposure Command, validating Rapid7's integrated approach to comprehensive attack surface management.

Strong International Revenue Growth

International revenue grew 14% year-over-year, increasing to 25% of total revenue, while North America grew 3%.

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Rapid7 (RPD) 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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RPD Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 13, 2025	2025 (Q1)	0.34 / -	0.55	―	―	―
Feb 12, 2025	2024 (Q4)	0.50 / 0.48	0.72	-33.33% (-0.24)
Nov 06, 2024	2024 (Q3)	0.52 / 0.66	0.5	32.00% (+0.16)
Aug 06, 2024	2024 (Q2)	0.53 / 0.58	0.18	222.22% (+0.40)
May 07, 2024	2024 (Q1)	0.54 / 0.55	0.16	243.75% (+0.39)
Feb 07, 2024	2023 (Q4)	0.48 / 0.72	0.35	105.71% (+0.37)
Nov 01, 2023	2023 (Q3)	0.42 / 0.50	0.14	257.14% (+0.36)
Aug 08, 2023	2023 (Q2)	0.11 / 0.18	-0.01	1900.00% (+0.19)
May 09, 2023	2023 (Q1)	0.09 / 0.16	-0.16	200.00% (+0.32)
Feb 08, 2023	2022 (Q4)	0.18 / 0.35	-0.16	318.75% (+0.51)

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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RPD Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 12, 2025	$36.79	$34.82	-5.35%
Nov 06, 2024	$41.60	$41.28	-0.77%
Aug 06, 2024	$33.02	$36.30	+9.93%
May 07, 2024	$45.80	$38.00	-17.03%

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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