RAPID7 Reports Positive Q2 Earnings for FY2023
August 12, 2023
☀️Earnings Overview
For Fiscal Year 2023, Q2, Rapid7 ($NASDAQ:RPD) reported total revenue of USD 190.4 million, an increase of 13.7% from the same period last year. Despite this, their net income was reported as USD -66.8 million, a decrease from the prior year’s -39.6 million.
Price History
On Tuesday, RAPID7 reported positive earnings for the second quarter of the fiscal year 2023. Despite this positive news, the company’s stock opened the day at $41.3 and closed at $39.8, a 5.6% drop from its prior closing price of 42.2. This drop could be attributed to investors remaining cautious despite the positive news, or even to profit-taking as the stock had seen steady gains over the past few weeks.
Analysts remain largely positive on RAPID7’s future prospects, citing their strong financials and ability to grow in the cybersecurity market. It is likely that the stock will continue to rise as investors become more confident in the company’s ability to deliver and grow over the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rapid7. More…
| Total Revenues | Net Income | Net Margin |
| 733.84 | -132.81 | -15.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rapid7. More…
| Operations | Investing | Financing |
| 97.5 | -87.72 | 10.01 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rapid7. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.36k | 1.47k | -1.84 |
Key Ratios Snapshot
Some of the financial key ratios for Rapid7 are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 25.9% | – | -16.3% |
| FCF Margin | ROE | ROA |
| 8.5% | 67.5% | -5.5% |
Analysis
GoodWhale has conducted an analysis of RAPID7‘s wellbeing and found that the company has an intermediate health score of 6/10. This is based on our assessment of RAPID7’s cash flows and debt, which indicate that the company is likely to have the ability to pay off debt and fund future operations. Our Star Chart further reveals that RAPID7 is strong in terms of growth but weak in terms of asset, dividend and profitability. Based on this analysis, we have classified RAPID7 as a ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered to be less stable due to its lower profitability. Given its characteristics, we believe that investors with a higher risk appetite may be most interested in investing in RAPID7. Such investors would likely be willing to take on more risk for the potential reward of higher returns. More…
Peers
Rapid7 Inc, a cybersecurity company, provides vulnerability management, compliance, and penetration testing solutions. Its competitors are SecureWorks Corp, Safe-T Group Ltd, and CYREN Ltd.
– SecureWorks Corp ($NASDAQ:SCWX)
SecureWorks Corp is a cybersecurity company that provides various security products and services to businesses and organizations. As of 2022, the company has a market capitalization of 645.77 million and a return on equity of -9.05%. The company’s products and services include managed security services, threat intelligence, security analytics, and incident response. SecureWorks Corp was founded in 1998 and is headquartered in Atlanta, Georgia.
– Safe-T Group Ltd ($NASDAQ:SFET)
The company’s market cap is 12.47M as of 2022. The company’s ROE is -53.54%. The company is engaged in the business of providing security products and services.
– CYREN Ltd ($NASDAQ:CYRN)
CYREN Ltd is a cybersecurity company that provides internet security solutions to businesses and consumers. The company has a market capitalization of $7.96 million and a return on equity of -120.94%. CYREN’s products and services include email and web security, network security, and data protection. The company was founded in 1991 and is headquartered in Herzliya, Israel.
Summary
RAPID7 released their Q2 earnings report for FY2023, with total revenue of USD 190.4 million, representing a 13.7% year-over-year increase. Unfortunately, net income was reported at USD -66.8 million, a decrease from -39.6 million in the prior year. This caused the stock price to move down on the same day. Investors analyzing the company’s performance should consider the positive factors such as the increase in revenue and the fact that the losses were still lower than in the previous year.
However, they should also factor in the reality that RAPID7 is currently facing losses and that the stock price decreased on the news of their earnings report. Ultimately, investors should perform further analysis to determine if RAPID7 is a good investment opportunity.
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