Rapid7 (RPD) Reports Earnings Tomorrow: What To Expect

Cybersecurity software maker Rapid7 (NASDAQ:RPD) will be announcing earnings results tomorrow after market close. Here’s what to expect.

Rapid7 beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $216.3 million, up 5.4% year on year. It was a slower quarter for the company, with full-year guidance of slowing revenue growth and full-year EPS guidance missing analysts’ expectations significantly. It added 108 customers to reach a total of 11,727.

Is Rapid7 a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Rapid7’s revenue to grow 1.4% year on year to $208 million, slowing from the 12% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.34 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Rapid7 has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Rapid7’s peers in the cybersecurity segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Qualys delivered year-on-year revenue growth of 9.7%, beating analysts’ expectations by 1.8%, and Tenable reported revenues up 10.7%, topping estimates by 2.4%. Qualys’s stock price was unchanged after the resultswhile Tenable was down 9.3%.

Read our full analysis of Qualys’s results here and Tenable’s results here.

There has been positive sentiment among investors in the cybersecurity segment, with share prices up 12.9% on average over the last month. Rapid7 is up 6.5% during the same time and is heading into earnings with an average analyst price target of $35.21 (compared to the current share price of $25.19).

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.