Rapid7 Stock Fair Value Calculation – RAPID7 Reports Record-Breaking Earnings for FY2023 Q2
August 24, 2023
🌥️Earnings Overview
On August 8 2023, Rapid7 ($NASDAQ:RPD) announced its quarterly earnings for the period ending June 30 2023, reporting a total revenue of USD 190.4 million, a 13.7% increase from the same period the previous year. Net income however was USD -66.8 million, in comparison to -39.6 million the year prior.
Market Price
On Tuesday, RAPID7 made headlines with their record-breaking earnings for FY2023 Q2. The company’s stock opened at $41.3 and closed at $39.8, a drop of 5.6% from the previous closing price of $42.2. Overall, these results paint a positive picture for the future of RAPID7 and its shareholders. The company is well-positioned to capitalize on the growing need for cybersecurity solutions, which should lead to continued growth in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rapid7. RAPID7_Reports_Record-Breaking_Earnings_for_FY2023_Q2″>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. RAPID7_Reports_Record-Breaking_Earnings_for_FY2023_Q2″>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. RAPID7_Reports_Record-Breaking_Earnings_for_FY2023_Q2″>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. RAPID7_Reports_Record-Breaking_Earnings_for_FY2023_Q2″>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 – Rapid7 Stock Fair Value Calculation
At GoodWhale, we have conducted a financial analysis of Rapid7. Our proprietary Valuation Line has determined that the intrinsic value of a Rapid7 share is around $94.0. Looking at the current market price of $39.8 per share, we can see that Rapid7 is severely undervalued by 57.6%. This presents an incredible investment opportunity for those savvy enough to jump on it. RAPID7_Reports_Record-Breaking_Earnings_for_FY2023_Q2″>More…
Peers
Rapid7 Inc, a cybersecurity company, provides vulnerability management, compliance, and penetration testing solutions. Its competitors are SecureWorks Corp, Safe-T Group Ltd, and CYREN Ltd.
– SecureWorks Corp ($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‘s Q2 FY2023 earnings report showed an increase in total revenue, but a decrease in net income. The total revenue was 190.4 million USD, a 13.7% increase from the same period last year.
However, the net income was -66.8 million USD, compared to -39.6 million USD the previous year. This news sent the company’s stock price down on the same day, causing concern for investors. Investors should continue to monitor developments regarding Rapid7’s performance and outlook.
