Business
Rapid7 Announces First Quarter 2025 Financial Results
Annualized recurring revenue (“ARR”) of $837 million, an increase of 4% year-over-yearTotal revenue of $210 million, up 3% year-over-year; Product
About this update from Rapid7, Inc.
[{"type":"text","content":"Annualized recurring revenue (“ARR”) of $837 million, an increase of 4% year-over-yearTotal revenue of $210 million, up 3% year-over-year; Product subscriptions revenue of $204 million, up 4% year-over-yearGAAP operating loss of $0.1 million; Non-GAAP operating income of $32 millionNet cash provided by operating activities of $30 million; Free cash flow of $25 million BOSTON, May 12, 2025 (GLOBE NEWSWIRE) -- Rapid7, Inc. (Nasdaq: RPD), a leader in extended risk and threat detection, today announced its financial results for the first quarter 2025. “We had a slower start to 2025 than anticipated however we have a clear strategy and strong conviction in our long-term opportunity,” said Corey Thomas, Chairman and CEO of Rapid7. “Against a more uncertain macroeconomic environment, we are executing with increased focus and urgency—investing behind our leadership in MDR, accelerating Exposure Command adoption, and sharpening our go-to-market engine. We believe these steps position us for improved ARR in the second half of the year and beyond. At the same time, we remain committed to operational discipline and delivering strong free cash flow in 2025.” First Quarter 2025 Financial Results and Other Metrics As of March 31, 2025 2024 % Change (dollars in thousands)ARR$837,220 $807,196 4%Number of customers 11,685 11,462 2%ARR per customer$71.6 $70.4 2% Three Months Ended March 31, 2025 2024 % Change (in thousands, except per share data)Product subscriptions revenue$203,935 $196,918 4%Professional services revenue 6,318 8,183 (23%)Total revenue$210,253 $205,101 3% North America revenue$157,945 $157,340 —%Rest of world revenue 52,308 47,761 10%Total revenue$210,253 $205,101 3% GAAP gross profit$150,773 $144,107 GAAP gross margin 72% 70% Non-GAAP gross profit$157,460 $151,112 Non-GAAP gross margin 75% 74% GAAP (loss) income from operations$(101) $9,716 GAAP operating margin —% 5% Non-GAAP income from operations$32,353 $40,285 Non-GAAP operating margin 15% 20% GAAP net income$2,105 $1,406 GAAP net income per share, basic$0.03 0.02 GAAP net income per share, diluted$0.03 $0.02 Non-GAAP net income$35,578 $39,388 Non-GAAP net income per share: Basic$0.56 $0.64 Diluted$0.49 $0.55 Adjusted EBITDA$38,898 $46,619 Net cash provided by operating activities$29,757 $31,070 Free cash flow$24,677 $27,534 For additional details on the reconciliation of no...