Rapid7 shares drop on lower-than-expected revenue outlook

Shares in Rapid7 Inc. have been down in late buying and selling after the corporate predicted lower-than-expected income in its newest earnings report.

For the quarter that ended Dec. 31, Rapid7 reported non-generally accepted accounting ideas web revenue per diluted share of 35 cents, up from a lack of 17 cents per share in the identical quarter of final 12 months. Income got here in a $184.5 million, up 22% year-over-year. Analysts had expected earnings per share of 18 cents on income of $179.5 million.

The corporate’s numbers have been up throughout the board, with product income up 22% year-over-year to $172.9 million {and professional} income up 12% to $11.6 million. Non-GAAP web revenue was $22.5 million in comparison with a lack of $8.9 million within the fourth quarter of 2022 and web money supplied by working actions was $40.2 million, up from $4.7 million.

Highlights within the quarter included the Rapid7 showcasing a number of new cloud safety capabilities at AWS re:Invent, together with agentless vulnerability evaluation and cloud detection and response. In October, Rapid7 achieved ISO27001 certification for data safety administration, which the corporate claims validates the excessive normal of its safety technique and processes.

For the complete fiscal 12 months 2022, Rapid7 reported non-GAAP EPS of 35 cents, up from a lack of 5 cents the 12 months prior, on income of $685 million, up 29% year-over-year.

“Rapid7 ended the 12 months with income, working revenue, and free money stream that exceeded our focused ranges,” Corey Thomas, chairman and chief government officer of Rapid7, mentioned in a statement. “Amidst an evolving financial panorama, we see prospects persevering with to broaden their pockets share round our main Perception platform, with ARR per buyer rising double-digits from the prior 12 months.”

For the primary quarter of 2023, Rapid7 predicts non-GAAP EPS of seven cents to 10 cents on income of $180 million to $182 million. Analysts had been anticipating seven cents and $185.7 million.

For its full fiscal 12 months, the corporate expects EPS of 81 cents to 88 cents on income of $771 million to $778 million. Analysts had anticipated 49 cents and $789.82 million.

Except its quarterly and full-year income outlook, Rapid7 reported sturdy figures, nonetheless, it wasn’t sufficient for buyers. Shares in Rapid7 have been down 2.86% in late buying and selling.

The earnings report comes per week after it was reported that Rapid7 was exploring a sale. The corporate is alleged to have obtained takeover curiosity from a number of potential patrons together with personal fairness companies.

Picture: Rapid7