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Rapid7 Earnings Preview: Can the Cybersecurity Firm Bounce Back?
6 Aug
Summary
- Rapid7 beat revenue expectations last quarter but saw decelerating customer growth
- Analysts expect 1.9% year-over-year revenue growth in the upcoming earnings
- Cybersecurity peers Qualys and Tenable reported solid Q2 results
Cybersecurity software maker Rapid7 is gearing up to report its latest earnings this Thursday afternoon. The company had a satisfactory previous quarter, beating analysts' revenue expectations by 1.1% and reporting revenues of $210.3 million, up 2.5% year-on-year. However, Rapid7 also saw decelerating customer growth, losing 42 customers and ending up with a total of 11,685.
As Rapid7 heads into its upcoming earnings report, analysts are expecting the company's revenue to grow 1.9% year-on-year to $212 million, a slowdown from the 9.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.44 per share.
The majority of analysts covering Rapid7 have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to maintain its course. The company has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.3% on average.
Looking at Rapid7's peers in the cybersecurity segment, some have already reported their Q2 results, providing a glimpse into the industry's performance. Qualys delivered year-on-year revenue growth of 10.3%, beating analysts' expectations by 1.7%, while Tenable reported revenues up 11.8%, topping estimates by 2.2%. However, Tenable's stock traded down 3% following the results.
