Rapid7 Joins Growing List of Cybersecurity Companies Announcing Layoffs
November 21, 2023
☀️Trending News
Rapid7 ($NASDAQ:RPD), a leading provider of cybersecurity and analytics solutions, has joined the growing list of companies in the industry announcing layoffs. Rapid7 is headquartered in Boston and provides critical visibility and insight into security risks and threats across cloud, data, and networks. It also provides security and compliance automation solutions to protect organizations from threats while also helping to keep them compliant with regulations.
Rapid7’s stock has been on a downward trend through the pandemic, and the announcement of layoffs will likely be seen as a negative sign. Still, the company is determined to continue delivering on its mission of helping its customers remain secure, compliant, and protected.
Stock Price
On Wednesday, Rapid7, a leading provider of security solutions and services, joined the growing list of cybersecurity companies announcing layoffs in the wake of the coronavirus pandemic. The news caused the stock to drop by 2.4% from the previous closing price of $53.4, opening at $53.7 and closing at $52.1. The company has assured its customers that the customer-facing teams are not affected and that service will not be compromised.
Despite the cuts, Rapid7 remains committed to their customers, partners, and employees during this difficult time. They have implemented measures to minimize the financial impact for those affected as well as continuing to invest in their security products and solutions. 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 |
| 756.92 | -180.69 | -18.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rapid7. More…
| Operations | Investing | Financing |
| 81.05 | -150.33 | 82.77 |
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 |
| 1.4k | 1.56k | -2.65 |
Key Ratios Snapshot
Some of the financial key ratios for Rapid7 are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 24.7% | – | -14.9% |
| FCF Margin | ROE | ROA |
| 6.9% | 51.6% | -5.0% |
Analysis
GoodWhale has performed an analysis of RAPID7‘s wellbeing and classified it as a ‘cheetah’ based on the Star Chart. This type of company is one that has achieved high revenue or earnings growth, but is considered less stable due to lower profitability. To assess RAPID7’s financial health, GoodWhale found it to have an intermediate health score of 5/10 with regard to its cashflows and debt. This indicates that it is likely to be able to pay off debt and fund future operations. In terms of growth, RAPID7 is strong, but it is weak in asset, dividend, and profitability. Investors seeking high growth in a volatile market may find RAPID7 an attractive option. However, those looking for a more stable company may want to look elsewhere. 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 is a leading provider of cybersecurity solutions and services. Despite these job cuts, analysts believe that investing in Rapid7 may still be beneficial. The company has a strong financial position with low debt and ample cash. Its financial performance has been strong in the past year, with revenue growth and improved margins. Rapid7’s diverse portfolio features security assessment, threat intelligence, security analytics, and automation products, allowing them to stay competitive in the cybersecurity space.
Additionally, the company has made strategic acquisitions to expand into the cloud security market. Given its financial position and strong portfolio of products, analysts suggest that investors take advantage of the discounted stock prices and consider investing in Rapid7.
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