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Compared to Estimates, Rapid7 (RPD) Q1 Earnings: A Look at Key Metrics

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Rapid7 (RPD - Free Report) reported $205.1 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 12%. EPS of $0.55 for the same period compares to $0.16 a year ago.

The reported revenue represents a surprise of +0.49% over the Zacks Consensus Estimate of $204.1 million. With the consensus EPS estimate being $0.54, the EPS surprise was +1.85%.

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: $807.20 billion versus the six-analyst average estimate of $815.97 billion.
  • Number of customers: 11,462 versus 11,586 estimated by two analysts on average.
  • ARR per customer: $70,400 versus the two-analyst average estimate of $70,660.88.
  • Revenue- Professional services: $8.18 million versus the seven-analyst average estimate of $7.49 million. The reported number represents a year-over-year change of -13%.
  • Revenue- Products: $196.92 million versus the seven-analyst average estimate of $196.60 million. The reported number represents a year-over-year change of +13.3%.
  • Non-Gaap Gross Profit- Products: $148.80 million compared to the $150.28 million average estimate based on seven analysts.
  • Non-Gaap Gross Profit- Professional services: $2.30 million compared to the $1.97 million average estimate based on six analysts.
View all Key Company Metrics for Rapid7 here>>>

Shares of Rapid7 have returned -5.4% over the past month versus the Zacks S&P 500 composite's -0.4% 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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