What is the revenue and EPS growth rate for Rapid7 year over year?

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What were the key takeaways from Rapid7's earnings call?

What were the key takeaways from Rapid7’s earnings call?

What is Rapid7's latest dividend and current dividend yield?

- **Revenue Resilience**: Full-year 2025 revenue growth of 1.9% ($859.8M) despite macro challenges, driven by D&R ARR +7%.
- **AI-Driven Differentiation**: Strategic investments in AI for MDR and Exposure Command, with Microsoft MDR integration as key win.
- **2026 Caution**: Q1 2026 ARR decline (-1% YoY) reflects legacy business headwinds, but D&R growth and AI efficiency gains expected to accelerate.
- **Financial Discipline**: Free cash flow maintained at $130M annually; $659M cash balance supports debt maturity in 2027.
- **Customer Demand**: AI adoption in security operations is a key growth driver, with customers seeking outcome-based services over point solutions.

**【CEO Summary Section】**
- **Revenue and ARR Growth**: Q4 2025 total revenue of $217.4 million (0.5% YoY), full-year revenue $859.8 million (1.9% YoY). ARR ended at $839.9 million, flat YoY, with D&R ARR growing 7%.
- **AI and Security Strategy**: Emphasized AI-driven security operations, with investments in MDR (managed detection and response) and Exposure Command. Highlighted partnerships like Microsoft MDR integration.
- **Market Positioning**: Differentiated as a leader in outcome-based, AI-enhanced security services, contrasting with software-only competitors.
- **Customer Wins**: Notable deals include a leading offshore drilling company and a sovereign tribal government, showcasing service+technology value.
- **2026 Outlook**: Focus on operational efficiency, scaling AI workflows, and go-to-market execution. Anticipates margin expansion as 2026 progresses.

**【CFO Financial Commentary】**
- **Q4 2025 Results**: Non-GAAP operating income $30.1 million (13.9% margin), full-year $135.7 million (15.8% margin). Free cash flow $130 million annually.
- **2026 Guidance**: Revenue $835-843 million (-2% YoY), non-GAAP EPS $1.50-1.60, free cash flow $125-135 million. Q1 2026 ARR expected $830 million (-1% YoY).
- **Expense Management**: Higher Q4 2025 investments (e.g., India capacity center) to improve efficiency. Margins expected to expand post-mid-2026.
- **Debt Management**: Confident in $659 million cash balance to settle $200 million convertible debt in March 2027.

**【Q&A Highlights】**
- **Sales Strategy**: Shift to partner-delivered professional services, tighter marketing-sales alignment, and customer success focus.
- **Market Focus**: Detection and Response (D&R) as core growth driver, with 50%+ ARR in D&R. Exposure Command adoption accelerating.
- **ARR Guidance**: No full-year 2026 ARR guidance due to go-to-market changes; Q1 2026 ARR decline reflects legacy business pressure.
- **AI Impact**: Customers demand AI for efficiency, but also transparency. Rapid7 balances automation with human expertise in SOC.
- **Customer Mix**: Mid-market enterprises (1,000-20,000 employees) as core, with focus on consolidating security tools onto Rapid7 platform.
- **Pipeline Health**: Larger deals in pipeline, but prioritizing balanced mix of deal sizes to avoid execution bottlenecks.

Rapid7, Inc. (RPD) Q4 2025 Earnings Call Transcript

- **ARR Growth**: 2% YoY to $838M, with MDR driving 60%+ of ARR
- **New Leadership**: Allan Peters (CCO) and Rafe Brown (CFO) to accelerate growth
- **AI SOC Strategy**: Unified Command Platform with 500+ integrations
- **Financial Strength**: $30M free cash flow, 73% gross margin
- **Partnership**: Microsoft MDR solution for enhanced detection/response
- **Guidance**: Full year revenue $856M-$858M, op income $130M-$135M

**【CEO Summary Section】**
- **ARR Growth**: Q3 ARR of $838M, up 2% YoY, driven by MDR and AI SOC platform adoption. 
- **Leadership Changes**: New CCO Allan Peters and incoming CFO Rafe Brown to accelerate growth execution.
- **Strategic Focus**: Shifting to AI-powered SOC with Command Platform, integrating exposure management and MDR. 
- **Pipeline Update**: Reduced 2025 ARR target to $838M-$840M (from $845M-$850M) due to deal timing variability.
- **Key Win**: $600K+ deal replacing multi-vendor stack with Rapid7's unified platform.

**【CFO Financial Commentary】**
- **Revenue**: Q3 $218M (+2% YoY), beating guidance. Full year $856M-$858M (1-2% YoY growth).
- **Profitability**: Operating income $37M (17% margin), up from $30M last quarter. Full year op income $130M-$135M.
- **Cash Flow**: Q3 free cash flow $30M, full year $125M-$135M guidance maintained.
- **Margins**: Gross margin 73%, S&M 33% of rev, R&D 17%.
- **Q4 Outlook**: ARR flat QoQ, revenue $214M-$216M, EPS $0.37-$0.44.

**【Q&A Highlights】**
- **MDR Economics**: Higher gross margins (75%) vs. legacy VM, driven by automation/AI.
- **International Growth**: 25% of revenue, 8% YoY growth vs. 2% overall ARR growth.
- **Pipeline Visibility**: Large deals (>6 months cycle) make forecasting challenging.
- **Microsoft Partnership**: New MDR for Microsoft solution integrates with Defender ecosystem.
- **Exposure Command**: Upgrades to Exposure Command growing, but deal sizes 2x+ legacy VM.
- **Churn**: Gross churn stable, MDR renewals >90%.


Rapid7, Inc. (RPD) Q3 2025 Earnings Call Transcript

- **ARR Growth and Platform Expansion**: Q2 ARR $841M (+3% YoY), with D&R business >50% of ARR. Command platform wins multi-million dollar deals, driven by AI/automation.
- **Financial Strength**: Q2 revenue $214M (+3% YoY), free cash flow $42M. Tightened full-year ARR guidance to $850-865M, reflecting back-end deal concentration.
- **Strategic Moves**: New Chief Commercial Officer to accelerate growth. India SOC investments and FedRAMP certification position for '26 federal expansion.
- **Risk Management**: CFO transition underway; $200M credit facility provides liquidity buffer.

**【CEO Summary Section】**
- **ARR Growth and Strategy**: Ended Q2 with $841M ARR, up 3% YoY. Detection and Response (D&R) business now represents over 50% of ARR, growing in mid-teens YoY. Command platform expansion, including Incident Command, is driving consolidation wins (e.g., multi-million dollar UK retail deal). 
- **AI and Platform Differentiation**: Agentic AI workflows embedded in MDR reduce noise and improve outcomes. Command platform integrates 500+ integrations, providing unified attack surface visibility. 
- **Leadership Changes**: Appointed new Chief Commercial Officer to accelerate go-to-market execution. CFO Tim Adams will retire, with search underway for successor.

**【CFO Financial Commentary】**
- **Revenue and Profitability**: Q2 revenue $214M (+3% YoY), beating guidance. Non-GAAP EPS $0.58, driven by strong cost control (Sales/Marketing 33% of rev, flat YoY). Free cash flow $42M, bringing YTD to $67M.
- **Guidance Update**: Narrowed full-year ARR to $850-865M (prev $850-880M), reflecting back-end weighted deal cadence. Q3 ARR ~$840M, with ~70% of net new ARR in Q4.
- **Balance Sheet**: $600M cash, repaid $46M convertible notes. Secured $200M revolving credit facility for flexibility.

**【Q&A Highlights】**
- **MDR Momentum**: Enterprise MDR expansion (e.g., co-managed detection, cloud support) driving healthy growth. Q2 saw 7-figure deals, validating strategic positioning.
- **Exposure Command Progress**: Pipeline growth in exposure management, but deal cycles longer than expected. ASPs higher than initial estimates, suggesting strategic consolidation opportunities.
- **India SOC Investment**: Scaling SOC capacity in India to support hybrid workload management. OI guide reflects ramping costs in Q3/Q4.
- **Federal Market**: Achieved FedRAMP certification, positioning for '26 federal growth. Focus on integrating AI/automation into federal security operations.
- **Pricing Strategy**: Working on bite-sized expansion packages to simplify upsell motion, targeting predictable growth from 11,643 global customers.

Rapid7, Inc. (RPD) Q2 2025 Earnings Call Transcript

- **D&R Dominance**: Detection and Response now 50%+ of ARR, growing mid-teens YoY, with NBR at 75% of D&R business. 
- **REM Challenges**: Traditional VM decline and slow Exposure Command upgrades weigh on REM, though CNAPP capabilities remain differentiated. 
- **FY25 Guidance Adjustment**: ARR range lowered to $850-880M (1-5% YoY) due to macro uncertainty, with D&R as sole growth engine. 
- **Financial Resilience**: Operating income guidance maintained at $125-135M, reflecting disciplined cost management. 
- **Key Risks**: US mid-market budget caution, slower REM upgrade cycles, and extended D&R deal cycles. 
- **Upside Drivers**: Enterprise MDR expansion, AI-driven SOC efficiency, and international growth (10% YoY).

**【CEO Summary Section】**
- Q1 ARR of $837M (+4% YoY) fell short of expectations, driven by Detection and Response (D&R) growth (+mid-teens YoY) offset by challenges in Risk and Exposure Management (REM). 
- D&R now represents >50% of ARR, with strong demand for NBR (75% of D&R business). REM faced headwinds from traditional VM decline and slower upgrade cycles to Exposure Command. 
- Strategic focus on 3 pillars: 
  1. Sustain D&R growth as core engine 
  2. Modernize REM through REM platform upgrades 
  3. Improve cost structure via India innovation center
- FY25 ARR guidance adjusted to $850-880M (1-5% YoY growth) due to macro uncertainty, with D&R as primary growth driver.

**【CFO Financial Commentary】**
- Q1 revenue $210M (+3% YoY), above guidance, with product revenue $204M (+4% YoY). International revenue grew 10% YoY at 25% of total. 
- Operating income $32M (vs. guided range), non-GAAP EPS $0.49. Free cash flow $25M. 
- FY25 updated guidance: 
  - ARR: $850-880M (1-5% YoY) 
  - Revenue: $853-863M (1-2% YoY) 
  - Operating income: $125-135M 
  - Free cash flow: $125-135M 
  - Non-GAAP EPS: $1.78-1.91
- Q2 outlook: revenue $211-213M (+1-2% YoY), non-GAAP EPS $0.43-0.46.

**【Q&A Key Themes】**
1. **Macro Environment**: 
  - US mid-market enterprises delaying investments due to budget constraints, longer deal cycles. 
  - Healthier demand in Europe, regulated industries, and large enterprises. 
  - REM upgrade cycle slower than expected, with mid-market customers prioritizing budget for D&R. 
2. **REM Business**: 
  - Transitioning from standalone VM to integrated Exposure Command platform. 
  - 2024 progress in Exposure Command adoption, but slower than hoped in Q1. 
  - Focus on accelerating migrations, refining packaging/pricing, and enhancing CNAPP differentiation. 
3. **D&R Growth**: 
  - Expanded enterprise MDR offering launched in Q1, targeting large-scale customers. 
  - D&R ARR growth resilient despite macro, with Q1 deals delayed but closed in early Q2. 
  - AI investments in SOC innovation center driving efficiency and scalability. 
4. **Financial Discipline**: 
  - Maintaining operating income guidance ($125-135M) despite ARR adjustment, reflecting cost control. 
  - Repaid $46M convertible notes, strengthening balance sheet with $593M cash.


Rapid7 (RPD)-12 May 25-2025 Q1 Earnings call transcript

- **D&R Dominance**: $400M ARR in detection and response, growing mid-teens, with 75% from managed services.
- **Exposure Command Momentum**: 20% YoY pipeline growth in Q4, targeting greenfield risk management budgets.
- **2025 Growth Plan**: 4-6% ARR growth, $30M reinvested in MDR expansion and REM innovation.
- **Financial Strength**: 2024 free cash flow of $154M (18% margin), 2025 operating income guidance of $125-135M.
- **2026 Outlook**: Accelerated growth enabled by 2025 investments, with Analyst Day planned for details.


**【CEO Summary Section】**
- Total ARR reached $840 million in Q4 2024, up 4% YoY, with $400 million ARR from detection and response (D&R) business, growing mid-teens. Managed D&R contributes 75% of D&R ARR.
- Risk and exposure management (REM) pipeline grew 20% YoY in Q4, driven by early traction of Exposure Command. ARR per D&R customer is $100,000, reflecting platform consolidation trends.
- 2025 investments of $30 million focus on expanding MDR capabilities, accelerating REM roadmap, and establishing a SOC innovation center in India.
- 2025 ARR growth expected 4-6%, with D&R driving majority growth and REM contributing modestly.

**【CFO Financial Commentary】**
- Full year 2024 revenue: $844 million (+9% YoY), operating income: $164 million (19% margin), free cash flow: $154 million (18% margin).
- Q4 2024 revenue: $216 million (+5% YoY), operating income: $40 million (18% margin), non-GAAP EPS: $0.48.
- 2025 guidance: ARR $870-890 million (4-6% growth), revenue $860-870 million (2-3% growth), operating income $125-135 million, free cash flow $135 million.

**【Q&A Key Takeaways】**
- D&R growth: Mid-teens expansion driven by MDR, with $400 million ARR and 80-90% channel bookings.
- REM strategy: Exposure Command pipeline exceeds expectations, targeting greenfield risk management budgets. ARR per customer: $72,000, with 15% on consolidated platform.
- Margin dynamics: Product gross margin stable at mid-70s, MDR lower due to labor costs. India SOC center to drive long-term efficiency.
- 2026 outlook: Accelerated growth enabled by 2025 investments, with Analyst Day planned for further details.

**【Geographic Performance】**
- North America: 75% of revenue, 3% YoY growth; international: 25% of revenue, 14% YoY growth. Europe and APAC outperformed due to product availability and channel strength.
- Health care and state/local sectors face budget uncertainty, impacting near-term ARR growth.


Rapid7 (RPD)-12 Feb 25-2024 Q4 Earnings call transcript

Rapid7 (RPD)-6 Nov 24-2024 Q3 Earnings call transcript

Rapid7 (RPD)-6 Aug 24-2024 Q2 Earnings call transcript

Rapid7 (RPD)-7 May 24-2024 Q1 Earnings call transcript

- **ARR Growth**: 13% YoY to $806M, driven by detection/response and cloud security solutions.
- **Win Rate**: $0.5M ARR deal displacing legacy SIM with consolidated platform.
- **2024 Targets**: ARR $885-895M, free cash flow ≥$160M, 500bps margin expansion.
- **Strategic Focus**: AI-driven security, mainstream cloud adoption, partner ecosystem.
- **Risks**: Noisy macro environment impacting project funding.

**【CEO Summary Section】**
- Ended 2023 with $806M ARR, up 13% YoY, driven by detection/response and cloud security solutions.
- Highlighted a $0.5M ARR win with a media company, displacing legacy SIM competitors with consolidated platform.
- 2024 focus on: 1) AI-driven security operations, 2) mainstream cloud security adoption, 3) partner ecosystem expansion.
- Free cash flow target of $160M for 2024, up 500bps margin expansion.

**【CFO Financial Commentary】**
- Q4 2023: $205M revenue (+11% YoY), $41M operating income, $0.72 EPS.
- Full year: $778M revenue (+14%), $102M operating income, $84M free cash flow.
- 2024 guidance: ARR $885-895M (+10-11%), revenue $848-856M (+9-10%), free cash flow ≥$160M.
- Professional services revenue expected to decline as focus shifts to higher-margin products.

**【Q&A Highlights】**
- **Partnerships**: Investing in MSSP ecosystem and AWS Marketplace for cloud security distribution.
- **Cloud Security**: Traction in CNAP solutions for mainstream enterprises with limited cloud security teams.
- **AI**: Using LLMs for anomaly detection, workflow automation, and response acceleration.
- **Customer Growth**: 11,500 customers (+5% YoY), ARR per customer $70k (+7% YoY).
- **2024 Risks**: Noisy macro environment may impact project funding, but strong conversion rates and pipeline visibility provide confidence.


Actual												-0.09	0.05	0	-0.07	-0.03	0.07	0.06	-0.16	-0.16	-0.01	0.14	0.35	0.16	0.18	0.5	0.72	0.55	0.58	0.66	0.48	0.49	0.58	0.57	0.44
Forecast												-0.0925	-0.0088	-0.0439	-0.0769	-0.0629	0.0267	-0.07	-0.176	-0.1561	-0.0409	0.0553	0.1792	0.0861	0.1081	0.4207	0.4759	0.538	0.5318	0.5174	0.4967	0.3445	0.4437	0.4747	0.4105
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+2.70%	+668.18%	+100.00%	+8.97%	+52.31%	+162.17%	+185.71%	+9.09%	-2.50%	+75.55%	+153.16%	+95.31%	+85.83%	+66.51%	+18.85%	+51.29%	+2.23%	+9.06%	+27.56%	-3.36%	+42.24%	+30.72%	+20.08%	+7.19%

RPD

RPD fundamentals

RPD Q4 2025 Earnings

Earnings Call

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RPD

RPD fundamentals

RPD Q4 2025 Earnings

Earnings Call

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RPD Earnings Call Summary for Q2/20254:30 PM on Aug 7, 2025

RPD Earnings Call Summary for Q1/20254:30 PM on May 12, 2025

RPD Earnings Call Summary for Q4/20244:30 PM on Feb 12, 2025

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