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Rapid7(RPD) - 2024 Q4 - Annual Results
RPDRapid7(RPD)2025-02-12 21:10

Financial Performance - Annualized recurring revenue (ARR) reached 840million,a4840 million, a 4% increase year-over-year[4] - Full-year revenue totaled 844 million, up 9% year-over-year, with product subscriptions revenue at 809million,alsoup9809 million, also up 9%[4] - Free cash flow for the year was 154 million, compared to 84millioninthepreviousyear,markingan8384 million in the previous year, marking an 83% increase[5] - Non-GAAP income from operations for the full year was 163.5 million, significantly up from 102.2millionintheprioryear[5]−TotalrevenueforQ42024was102.2 million in the prior year[5] - Total revenue for Q4 2024 was 216.3 million, a 5.8% increase from 205.3millioninQ42023[38]−Productsubscriptionsrevenuereached205.3 million in Q4 2023[38] - Product subscriptions revenue reached 206.3 million, up from 194.8millionyear−over−year,representinga5.7194.8 million year-over-year, representing a 5.7% growth[38] - Net income for Q4 2024 was 2.2 million, a decrease from 19.1millioninQ42023,indicatingchallengesinprofitability[38]−Thecompanyreportedatotalgrossprofitof19.1 million in Q4 2023, indicating challenges in profitability[38] - The company reported a total gross profit of 150.4 million for Q4 2024, compared to 145.4millioninQ42023,showingaslightimprovement[38]−Operatingexpensesfortheyeardecreasedto145.4 million in Q4 2023, showing a slight improvement[38] - Operating expenses for the year decreased to 557.9 million from 629.9millioninthepreviousyear,indicatingcostmanagementefforts[38]−FortheyearendedDecember31,2024,GAAPnetincomewas629.9 million in the previous year, indicating cost management efforts[38] - For the year ended December 31, 2024, GAAP net income was 25.526 million, a significant improvement from a loss of 152.815millionin2023[47]−AdjustedEBITDAfortheyearendedDecember31,2024,was152.815 million in 2023[47] - Adjusted EBITDA for the year ended December 31, 2024, was 188.450 million, up from 126.661millionin2023,reflectingagrowthofapproximately48.8126.661 million in 2023, reflecting a growth of approximately 48.8%[47] Customer Growth - The number of customers increased to 11,727, representing a 2% growth from the previous year[3] - The number of customers with active recurring revenue contracts increased, contributing to the annual recurring revenue (ARR) metric[32] Future Projections - The company anticipates ARR for Q1 2025 to be between 870 million and 890million,reflectingayear−over−yeargrowthof4890 million, reflecting a year-over-year growth of 4% to 6%[8] - Revenue guidance for full-year 2025 is projected to be between 860 million and 870million,indicatingagrowthof2870 million, indicating a growth of 2% to 3%[8] - Anticipated non-GAAP net income for full-year 2025 is projected to be between 127 million and 137million,withdilutednon−GAAPnetincomepershareexpectedtobebetween137 million, with diluted non-GAAP net income per share expected to be between 1.72 and 1.85[50]−ThecompanyexpectsaGAAPnetlossforthefirstquarterof2025tobebetween1.85[50] - The company expects a GAAP net loss for the first quarter of 2025 to be between 11 million and 9million,withanticipatedstock−basedcompensationexpenseof9 million, with anticipated stock-based compensation expense of 28 million[50] - The anticipated free cash flow for full-year 2025 is projected to be 135million[51]CashFlowandLiquidity−NetcashprovidedbyoperatingactivitiesfortheyearendedDecember31,2024,was135 million[51] Cash Flow and Liquidity - Net cash provided by operating activities for the year ended December 31, 2024, was 171,670,000, an increase of 64.5% compared to 104,278,000in2023[41]−Cash,cashequivalents,andrestrictedcashattheendofQ42024totaled104,278,000 in 2023[41] - Cash, cash equivalents, and restricted cash at the end of Q4 2024 totaled 342,101,000, up from 214,127,000attheendofQ42023,markinga59.8214,127,000 at the end of Q4 2023, marking a 59.8% increase[42] - Total cash used in investing activities for the year ended December 31, 2024, was (46,522,000), a significant improvement from (178,754,000)in2023[41]−Thecompanyexperiencedanetincreaseincashof(178,754,000) in 2023[41] - The company experienced a net increase in cash of 111,993,000 in Q4 2024, compared to an increase of 30,912,000inQ42023,representingagrowthof262.530,912,000 in Q4 2023, representing a growth of 262.5%[41] Stock-Based Compensation - Stock-based compensation expense for Q4 2024 was 27,412,000, up from 24,177,000inQ42023,reflectingariseof9.124,177,000 in Q4 2023, reflecting a rise of 9.1%[44] - Stock-based compensation expense for the year ended December 31, 2024, was 107.961 million, slightly down from 111.636 million in 2023[47] Operational Developments - Rapid7's Managed Extended Detection & Response expanded to include Microsoft security telemetry, enhancing threat detection capabilities[7] - The company achieved the In Process Designation from FedRAMP for its InsightGovCloud Platform, indicating progress towards federal authorization[11] - Rapid7 won "Security Vendor of the Year" at the CRN Channel Awards 2024, recognizing its contributions to the IT channel[7] Financial Position - Total assets increased to 1.65 billion as of December 31, 2024, compared to 1.51billionin2023,reflectinggrowthinthecompany′sfinancialposition[36]−Non−GAAPgrossprofitforQ42024was1.51 billion in 2023, reflecting growth in the company's financial position[36] - Non-GAAP gross profit for Q4 2024 was 157,902,000, up from 152,265,000inQ42023,reflectingagrowthof3.4152,265,000 in Q4 2023, reflecting a growth of 3.4%[44] - Non-GAAP gross margin for Q4 2024 was 73.0%, slightly down from 74.2% in Q4 2023[44] - The company reported a GAAP loss from operations of 35,035,000 for the year ended December 31, 2024, compared to a loss of 84,288,000in2023,showingareductionof58.384,288,000 in 2023, showing a reduction of 58.3%[44] Corrections and Adjustments - An immaterial correction resulted in an increase of approximately 3.6 million in additional paid-in capital as of December 31, 2023, without affecting net cash provided by operating activities[52]