What guidance did Rapid7's management provide for the next earnings period?

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

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

Did Rapid7 beat or miss consensus estimates last quarter?

What factors drove the changes in Rapid7's revenue and profit?

What is Rapid7's gross profit margin?

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

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

- **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%

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