What To Expect From Rapid7’s (RPD) Q4 Earnings

Anthony Lee /
2023/02/07 4:30 am EST
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Cybersecurity software maker Rapid7 (NASDAQ:RPD) will be announcing earnings results tomorrow after market close. Here's what you need to know.

Last quarter Rapid7 reported revenues of $175.7 million, up 25.6% year on year, missing analyst expectations by 0.12%. It was a weak quarter for the company, with revenue guidance for the next quarter and full year missing analysts' expectations. The company added 167 customers to a total of 10,791.

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 18.4% year on year to $179.5 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 $0.18 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 2.69%.

With Rapid7 being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for software stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 20.8% over the last month. Rapid7 is up 50.7% during the same time, and is heading into the earnings with analyst price target of $45.85, compared to share price of $49.75.

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.