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Here's What Key Metrics Tell Us About Rapid7 (RPD) Q3 Earnings

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Rapid7 (RPD - Free Report) reported $198.84 million in revenue for the quarter ended September 2023, representing a year-over-year increase of 13.1%. EPS of $0.50 for the same period compares to $0.14 a year ago.

The reported revenue represents a surprise of +0.93% over the Zacks Consensus Estimate of $197.01 million. With the consensus EPS estimate being $0.42, the EPS surprise was +19.05%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Rapid7 performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Annualized recurring revenue: $776.76 billion versus the seven-analyst average estimate of $773.89 billion.
  • Number of customers: 11,412 compared to the 11,447 average estimate based on three analysts.
  • ARR per customer: $68,100 versus the three-analyst average estimate of $68,231.76.
  • Revenue- Products: $189.88 million versus $187.67 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +14% change.
  • Revenue- Professional services: $8.97 million versus $9.34 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a -3.3% change.
  • Non-Gaap Gross Profit- Professional services: $2.99 million compared to the $1.95 million average estimate based on eight analysts.
  • Non-Gaap Gross Profit- Products: $145.33 million versus $142.81 million estimated by eight analysts on average.
View all Key Company Metrics for Rapid7 here>>>

Shares of Rapid7 have returned +2.8% over the past month versus the Zacks S&P 500 composite's -2.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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