Asahi shares mark weekly slide after cyberattack halts production
BOSTON - Rapid7, Inc. (NASDAQ:RPD) reported first quarter earnings that surpassed analyst expectations, but shares tumbled 3.4% as the cybersecurity firm’s guidance fell short of estimates.
The company posted adjusted earnings per share of $0.43, beating the consensus forecast of $0.34. Revenue rose 3% YoY to $210.25 million, also topping analyst projections of $208.24 million. However, Rapid7’s outlook for the rest of the year dampened investor enthusiasm.
For the second quarter, Rapid7 expects revenue between $211 million and $213 million, representing just 1-2% YoY growth. The company forecasts full-year 2025 revenue of $853 million to $863 million, also implying 1-2% growth.
"We had a slower start to 2025 than anticipated however we have a clear strategy and strong conviction in our long-term opportunity," said CEO Corey Thomas. He noted the company is executing with "increased focus and urgency" amid a more uncertain economic environment.
Rapid7’s annualized recurring revenue (ARR) grew 4% YoY to $837 million in Q1. The company now projects full-year ARR of $850 million to $880 million, indicating 1-5% growth.
Despite the tepid outlook, Rapid7 maintained its commitment to "operational discipline," forecasting free cash flow of $125 million to $135 million for 2025.
The company recently expanded its cybersecurity offerings, launching new threat detection and response capabilities. Rapid7 also announced plans to open a global capacity center in India to support its growth initiatives.
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