Rapid7 (RPD) To Report Earnings Tomorrow: Here Is What To Expect

Anthony Lee /
2023/05/08 4:48 am EDT

Cybersecurity software maker Rapid7 (NASDAQ:RPD) will be reporting results tomorrow afternoon. Here's what you need to know.

Last quarter Rapid7 reported revenues of $184.5 million, up 21.7% year on year, beating analyst revenue expectations by 2.72%. It was a weak quarter for the company, with revenue guidance for the next quarter and theĀ full year missing analysts' expectations. The company added 138 customers to a total of 10,929.

Is Rapid7 buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Rapid7's revenue to grow 15.2% year on year to $181.3 million, slowing down from the 34% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 per share.

Rapid7 Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.54%.

Looking at Rapid7's peers in the cybersecurity segment, only Tenable has so far reported results, delivering top-line growth of 18.5% year on year, and beating analyst estimates by 0.91%. The stock was down 13.5% on the results. Read our full analysis of Tenable's earnings results here.

There has been a stampede out of high valuation technology stocks and while some of the cybersecurity stocks have fared somewhat better, they have not been spared, with share price declining 6.54% over the last month. Rapid7 is up 1.19% during the same time, and is heading into the earnings with analyst price target of $52.1, compared to share price of $46.9.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.