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- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

RPD

RPD fundamentals

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