Rapid7 (NASDAQ:RPD) Issues FY 2025 Earnings Guidance

Key Points

• Rapid7 updated its FY 2025 earnings guidance, projecting earnings per share between $1.900 and $2.030, and revenue expectations ranging from $853 million to $863 million.
• The stock of Rapid7 has been downgraded by several analysts, with price targets reduced significantly, indicating a consensus "Hold" rating and an average target price of $32.84.
• Rapid7's most recent quarterly results showed an earnings per share of $0.49, outperforming the consensus estimate, and a revenue of $210.25 million, slightly exceeding expectations.

Rapid7 (NASDAQ:RPD - Get Free Report) updated its FY 2025 earnings guidance on Thursday. The company provided EPS guidance of 1.900-2.030 for the period, compared to the consensus EPS estimate of 1.857. The company issued revenue guidance of $853.0 million-$863.0 million, compared to the consensus revenue estimate of $858.8 million. Rapid7 also updated its Q3 2025 guidance to 0.440-0.470 EPS.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on RPD. Wall Street Zen raised shares of Rapid7 from a "hold" rating to a "buy" rating in a research note on Sunday, August 3rd. Mizuho cut their target price on shares of Rapid7 from $27.00 to $25.00 and set a "neutral" rating on the stock in a research note on Friday. Barclays decreased their price target on shares of Rapid7 from $26.00 to $25.00 and set an "equal weight" rating for the company in a research note on Tuesday, May 13th. Canaccord Genuity Group decreased their price target on shares of Rapid7 from $43.00 to $39.00 and set a "hold" rating for the company in a research note on Wednesday, May 14th. Finally, Piper Sandler decreased their price target on shares of Rapid7 from $35.00 to $30.00 and set a "neutral" rating for the company in a research note on Tuesday, May 13th. One equities research analyst has rated the stock with a sell rating, thirteen have assigned a hold rating, five have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, Rapid7 has a consensus rating of "Hold" and a consensus target price of $28.56.

Rapid7 Stock Up 1.7%

Shares of NASDAQ RPD traded up $0.31 on Monday, reaching $18.19. 478,931 shares of the company's stock traded hands, compared to its average volume of 854,343. Rapid7 has a 12 month low of $17.83 and a 12 month high of $44.48. The business's 50 day simple moving average is $22.87 and its two-hundred day simple moving average is $26.31. The company has a market cap of $1.17 billion, a price-to-earnings ratio of 44.36 and a beta of 0.96. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 16.87.

Rapid7 (NASDAQ:RPD - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The technology company reported $0.58 earnings per share for the quarter, beating the consensus estimate of $0.44 by $0.14. The company had revenue of $214.19 million during the quarter, compared to the consensus estimate of $212.17 million. Rapid7 had a net margin of 3.41% and a return on equity of 269.59%. The firm's quarterly revenue was up 3.0% compared to the same quarter last year. During the same quarter last year, the firm earned $0.58 earnings per share. As a group, equities research analysts forecast that Rapid7 will post 0.35 EPS for the current fiscal year.

Institutional Investors Weigh In On Rapid7

Several institutional investors and hedge funds have recently made changes to their positions in RPD. AQR Capital Management LLC bought a new stake in Rapid7 in the 1st quarter worth approximately $424,000. Woodline Partners LP grew its position in Rapid7 by 48.0% in the 1st quarter. Woodline Partners LP now owns 86,712 shares of the technology company's stock worth $2,299,000 after purchasing an additional 28,115 shares during the period. Finally, Royal Bank of Canada grew its position in Rapid7 by 26.8% in the 1st quarter. Royal Bank of Canada now owns 326,910 shares of the technology company's stock worth $8,667,000 after purchasing an additional 69,122 shares during the period. Institutional investors own 95.66% of the company's stock.

About Rapid7

Rapid7, Inc provides cybersecurity solutions under the Rapid7, Nexpose, and Metasploit brand names. The company offers endpoint to cloud data collection and sharing applications, such as Rapid7 Insight Agent, a software-based agent that is used on assets across on-premises and cloud environments to centralize and monitor data on company's platform; Rapid7 Insight Network Sensor that analyzes raw end-to-end network traffic to increase visibility into user activity, pinpoint real threats, and investigations; Rapid7 Cloud Event Data Harvesting that offers visibility into changes made to cloud resources; and third-party integrations and ecosystem, as well as orchestration and automation solutions.