Cybersecurity software maker Rapid7 (NASDAQ:RPD) will be announcing earnings results tomorrow after market close. Here’s what you need to know.
Rapid7 beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $214.7 million, up 8% year on year. It was a satisfactory quarter for the company, with accelerating customer growth but EPS guidance for next quarter missing analysts’ expectations significantly. It added 135 customers to reach a total of 11,619.
Is Rapid7 a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Rapid7’s revenue to grow 3.4% year on year to $212.2 million, slowing from the 11.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.50 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Rapid7 has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Rapid7’s peers in the cybersecurity segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Qualys delivered year-on-year revenue growth of 10.1%, beating analysts’ expectations by 1.9%, and Tenable reported revenues up 10.5%, topping estimates by 1.8%. Qualys traded down 3.8% following the results while Tenable was also down 7.8%.
Read our full analysis of Qualys’s results here and Tenable’s results here.
There has been positive sentiment among investors in the cybersecurity segment, with share prices up 11.4% on average over the last month. Rapid7 is down 1% during the same time and is heading into earnings with an average analyst price target of $43.44 (compared to the current share price of $37.77).
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