Rapid7, Inc. (RPD) Bundle
A Brief History of Rapid7, Inc.
Company Overview
Rapid7, Inc. is a cybersecurity company that provides a comprehensive suite of analytics and security solutions to help organizations manage their vulnerabilities and protect against cyber threats. The company was founded in 2000 and has established itself as a leader in the security industry.
Recent Financial Performance (2024)
As of September 30, 2024, Rapid7 reported total revenue of $627.7 million, representing a year-over-year increase of 9.7% compared to $572.4 million for the same period in 2023. The breakdown of revenue sources shows:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Product subscriptions | $602.6 million | $545.3 million | $57.3 million | 10.5% |
| Professional services | $25.2 million | $27.1 million | ($1.9 million) | (7.1%) |
Cost Structure
The total cost of revenue for the nine months ended September 30, 2024, was $184.8 million, an increase of 7.4% from $172.0 million in 2023. The cost breakdown is as follows:
| Cost Type | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Product subscriptions | $166.3 million | $150.6 million | $15.7 million | 10.4% |
| Professional services | $18.5 million | $21.4 million | ($2.9 million) | (13.6%) |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $411.6 million, down from $492.1 million in the same period of 2023. Key components include:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development | $125.6 million | $137.0 million | ($11.4 million) | (8.3%) |
| Sales and Marketing | $225.1 million | $239.3 million | ($14.2 million) | (5.9%) |
| General and Administrative | $60.8 million | $65.0 million | ($4.1 million) | (6.3%) |
Net Income and Earnings Per Share
For the nine months ended September 30, 2024, Rapid7 reported a net income of $27.0 million compared to a net loss of $169.3 million in 2023. Earnings per share for the same period were $0.43 compared to a loss of $2.80 a year earlier.
Cash Flow and Liquidity
As of September 30, 2024, Rapid7 had $230.1 million in cash and cash equivalents, an increase from $183.2 million at the same time in 2023. The cash flow statement highlights:
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net cash provided by operating activities | $107.9 million | $40.8 million |
| Net cash used in investing activities | ($99.5 million) | ($145.2 million) |
| Net cash provided by financing activities | $6.8 million | $81.8 million |
Customer Base and Market Position
Rapid7's customer base grew to 11,619 by September 30, 2024, reflecting a 2% increase from the previous year. The company continues to expand its market presence through strategic acquisitions and product innovations.
A Who Owns Rapid7, Inc. (RPD)
Ownership Structure
As of 2024, Rapid7, Inc. (RPD) has a diverse ownership structure that includes institutional investors, individual shareholders, and company executives. The breakdown of ownership is as follows:
| Ownership Type | Percentage of Ownership |
|---|---|
| Institutional Investors | 85.4% |
| Individual Investors | 12.6% |
| Insider Ownership | 2.0% |
Major Institutional Shareholders
The following table lists the top institutional shareholders of Rapid7, Inc. as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group, Inc. | 8,856,000 | 14.0% |
| BlackRock, Inc. | 8,400,000 | 13.3% |
| State Street Corporation | 6,500,000 | 10.3% |
| ClearBridge Investments, LLC | 5,000,000 | 7.9% |
| Invesco Ltd. | 4,200,000 | 6.7% |
Insider Ownership and Executive Shares
The following table outlines the shares held by key executives and board members of Rapid7, Inc.:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Corey Thomas | CEO | 750,000 | 1.2% |
| Jeffrey Kalowski | CFO | 300,000 | 0.5% |
| Michael T. McMahon | COO | 250,000 | 0.4% |
| Board of Directors | Various | 500,000 | 0.8% |
Recent Changes in Ownership
In 2024, Rapid7, Inc. experienced significant changes in its ownership structure due to the acquisition of Noetic Cyber, Inc. for a total purchase price of $51.0 million, which included $38.6 million in cash and contingent consideration of $12.1 million. The acquisition was aimed at enhancing Rapid7's security operations platform.
Stock Performance
As of September 30, 2024, Rapid7's stock performance reflects the market's response to its ownership changes and operational performance:
| Metric | Value |
|---|---|
| Current Stock Price | $29.08 |
| Market Capitalization | $1.83 billion |
| 52-Week High | $40.00 |
| 52-Week Low | $23.00 |
Conclusion on Ownership Composition
Rapid7, Inc. continues to maintain a strong institutional presence, with significant backing from major investment firms. The leadership team holds a modest share, indicating confidence in the company's growth while also aligning their interests with those of shareholders. This structure is supported by the company's recent strategic acquisitions aimed at bolstering its market position.
Rapid7, Inc. (RPD) Mission Statement
Overview of Mission Statement
Rapid7, Inc. focuses on empowering organizations to achieve their security goals through innovative technology and services. The company's mission emphasizes the importance of transparency, collaboration, and actionable insights in cybersecurity.
Key Aspects of the Mission Statement
- Empowerment: Rapid7 aims to empower organizations by providing tools and insights that enable them to proactively manage their security posture.
- Innovation: The company is committed to continuous innovation in its product offerings, ensuring they meet the evolving needs of its customers.
- Collaboration: Rapid7 fosters collaboration between security teams and business units to ensure security becomes an integral part of the organizational culture.
- Actionable Insights: The mission highlights the importance of providing actionable insights from data to help organizations make informed security decisions.
Financial Performance Metrics
Rapid7's financial performance reflects its commitment to its mission. The following table summarizes key financial metrics as of September 30, 2024:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $214,654,000 | $198,843,000 | $627,746,000 | $572,439,000 |
| Year-over-Year Growth | 8.0% | 13.1% | 9.7% | 14.3% |
| Non-GAAP Income from Operations | $43,952,000 | $36,773,000 | $123,513,000 | $60,723,000 |
| Free Cash Flow | $38,502,000 | ($582,000) | $95,241,000 | $23,780,000 |
| Annualized Recurring Revenue (ARR) | $823,104,000 | $776,760,000 | N/A | N/A |
| Number of Customers | 11,619 | 11,412 | N/A | N/A |
Strategic Initiatives and Acquisitions
In alignment with its mission, Rapid7 has engaged in strategic initiatives, including the acquisition of Noetic Cyber, Inc. on July 3, 2024, for $51.0 million. This acquisition enhances Rapid7's security operations platform and supports its mission to deliver comprehensive visibility to customers regarding their attack surface.
Customer Engagement and Satisfaction
Rapid7 emphasizes customer engagement as part of its mission. The company actively seeks feedback to improve its offerings and ensure customer satisfaction, which is reflected in its growing customer base.
Conclusion of Financial Insights
Rapid7's mission statement is not just a declaration of intent; it is backed by a strong financial performance and strategic actions that demonstrate the company's commitment to empowering organizations in their cybersecurity efforts.
How Rapid7, Inc. (RPD) Works
Company Overview
Rapid7, Inc. (RPD) provides security data and analytics solutions, helping organizations to detect and respond to threats. The company operates primarily through software subscriptions and professional services.
Financial Performance
As of September 30, 2024, Rapid7 reported total revenue of $627.7 million for the nine months ended, an increase of 9.7% compared to the same period in 2023. The revenue breakdown includes:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Product subscriptions | $602,578 | $545,349 | $57,229 | 10.5% |
| Professional services | $25,168 | $27,090 | ($1,922) | (7.1%) |
| Total Revenue | $627,746 | $572,439 | $55,307 | 9.7% |
Cost Structure
The total cost of revenue for the nine months ended September 30, 2024, was $184.8 million, up from $172.0 million in 2023, marking a 7.4% increase. The cost components included:
| Cost Type | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Product subscriptions | $166,290 | $150,597 | $15,693 | 10.4% |
| Professional services | $18,478 | $21,396 | ($2,918) | (13.6%) |
| Total Cost of Revenue | $184,768 | $171,993 | $12,775 | 7.4% |
Operating Expenses
For the nine months ended September 30, 2024, Rapid7 incurred operating expenses totaling $411.6 million, a decrease from $492.1 million in 2023, reflecting a focus on cost management. Key operating expenses include:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development | $125,611 | $137,048 | ($11,437) | (8.3%) |
| Sales and Marketing | $225,121 | $239,322 | ($14,201) | (5.9%) |
| General and Administrative | $60,837 | $64,961 | ($4,124) | (6.4%) |
| Total Operating Expenses | $411,569 | $492,111 | ($80,542) | (16.4%) |
Net Income
For the nine months ended September 30, 2024, Rapid7 reported a net income of $27.0 million, a significant improvement compared to a net loss of $169.3 million in the same period of 2023.
Cash Flow
Rapid7 generated a net cash flow from operating activities of $107.9 million in the nine months ended September 30, 2024, compared to $40.8 million in 2023.
Key Metrics
As of September 30, 2024, Rapid7 reported:
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Annualized Recurring Revenue (ARR) | $823,104,000 | $776,760,000 | 6.0% |
| Number of Customers | 11,619 | 11,412 | 2.0% |
| ARR per Customer | $70.8 | $68.1 | 4.1% |
Recent Acquisition
On July 3, 2024, Rapid7 acquired Noetic Cyber, Inc. for a total consideration of $51.0 million, which included $38.6 million in cash and $12.1 million in contingent consideration.
Stock Performance
As of September 30, 2024, Rapid7's stock performance showed a year-to-date increase of 8.0% in total revenue compared to the same period in the previous year. The company’s stock is traded on the NASDAQ under the ticker symbol RPD.
How Rapid7, Inc. (RPD) Makes Money
Revenue Sources
Rapid7, Inc. generates revenue primarily through two segments: product subscriptions and professional services.
- Product Subscriptions: This includes revenue from cloud-based subscriptions, managed services, term software licenses, content subscriptions, and maintenance and support services.
- Professional Services: Revenue from consulting and managed services, which are typically billed based on hours worked or project milestones.
Financial Performance
For the nine months ended September 30, 2024, Rapid7 reported:
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $627,746 | $572,439 | $55,307 | 9.7% |
| Product Subscriptions | $602,578 | $545,349 | $57,229 | 10.5% |
| Professional Services | $25,168 | $27,090 | ($1,922) | (7.1%) |
Cost Structure
For the same period, the cost of revenue was as follows:
| Cost Category | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Cost of Revenue | $184,768 | $171,993 | $12,775 | 7.4% |
| Product Subscriptions | $166,290 | $150,597 | $15,693 | 10.4% |
| Professional Services | $18,478 | $21,396 | ($2,918) | (13.6%) |
Gross Margin
Gross margins for the nine months ended September 30, 2024 were:
| Category | Gross Margin (%) |
|---|---|
| Product Subscriptions | 72.4% |
| Professional Services | 26.6% |
| Total Gross Margin | 70.6% |
Recurring Revenue
Recurring revenue, which includes term software licenses, content subscriptions, managed services, and maintenance and support, constituted:
- For Q3 2024: 96% of total revenue.
- For 9M 2024: 96% of total revenue.
Customer Metrics
As of September 30, 2024:
| Metric | Value |
|---|---|
| Annualized Recurring Revenue (ARR) | $823,104,000 |
| Number of Customers | 11,619 |
| ARR per Customer | $70,800 |
Recent Acquisitions
On July 3, 2024, Rapid7 acquired Noetic Cyber, Inc. for a total purchase price of $51 million, consisting of:
- $38.6 million in cash at closing
- $12.1 million of contingent consideration
- $0.4 million of deferred cash payments
Operating Expenses
The operating expenses for the nine months ended September 30, 2024 were:
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development | $125,611 | $137,048 | ($11,437) | (8.3%) |
| Sales and Marketing | $225,121 | $239,322 | ($14,201) | (5.9%) |
| General and Administrative | $60,837 | $64,961 | ($4,124) | (6.3%) |
Net Income
Net income for the nine months ended September 30, 2024 was:
| Metric | Value (in thousands) |
|---|---|
| Net Income | $27,007 |
| Net Loss (2023) | ($169,308) |
Cash Flow
For the nine months ended September 30, 2024, cash flows were:
| Activity | Cash Flow (in thousands) |
|---|---|
| Operating Activities | $40,800 |
| Investing Activities | ($99,500) |
| Financing Activities | $6,800 |
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Resources:
- Rapid7, Inc. (RPD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Rapid7, Inc. (RPD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Rapid7, Inc. (RPD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.