Rapid7 (NASDAQ:RPD) Updates 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) issued an update on its FY 2025 earnings guidance on Thursday morning. The company provided earnings per share guidance of 1.900-2.030 for the period, compared to the consensus earnings per share 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.

Rapid7 Price Performance

Shares of NASDAQ:RPD traded down $0.17 on Thursday, hitting $19.82. The company had a trading volume of 1,133,965 shares, compared to its average volume of 740,530. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 16.87. Rapid7 has a 52-week low of $19.21 and a 52-week high of $44.48. The business has a 50 day moving average of $22.97 and a 200 day moving average of $26.63. The company has a market cap of $1.27 billion, a PE ratio of 50.82 and a beta of 0.96.

Rapid7 (NASDAQ:RPD - Get Free Report) last released its earnings results on Monday, May 12th. The technology company reported $0.49 earnings per share for the quarter, topping the consensus estimate of $0.37 by $0.12. The firm had revenue of $210.25 million for the quarter, compared to the consensus estimate of $208.25 million. Rapid7 had a return on equity of 2,043.18% and a net margin of 3.42%. The firm's revenue for the quarter was up 2.5% compared to the same quarter last year. During the same period in the prior year, the business posted $0.55 earnings per share. As a group, equities analysts anticipate that Rapid7 will post 0.35 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on RPD shares. Susquehanna lowered their price objective on Rapid7 from $40.00 to $30.00 and set a "neutral" rating for the company in a research note on Tuesday, May 13th. DA Davidson restated an "underperform" rating and set a $21.00 price objective (down previously from $29.00) on shares of Rapid7 in a research note on Tuesday, May 13th. Scotiabank lowered their price objective on Rapid7 from $38.00 to $29.00 and set a "sector perform" rating for the company in a research note on Tuesday, May 13th. Mizuho lowered their price objective on Rapid7 from $30.00 to $27.00 and set a "neutral" rating for the company in a research note on Wednesday, July 16th. Finally, Piper Sandler decreased their target price on Rapid7 from $35.00 to $30.00 and set a "neutral" rating for the company in a research report on Tuesday, May 13th. One analyst has rated the stock with a sell rating, thirteen have issued a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $32.84.

Hedge Funds Weigh In On Rapid7

A number of hedge funds have recently modified their holdings of the stock. AQR Capital Management LLC bought a new stake in Rapid7 during the 1st quarter worth approximately $424,000. Woodline Partners LP lifted its holdings in Rapid7 by 48.0% during the 1st quarter. Woodline Partners LP now owns 86,712 shares of the technology company's stock worth $2,299,000 after buying an additional 28,115 shares in the last quarter. Finally, Royal Bank of Canada lifted its holdings in Rapid7 by 26.8% during the 1st quarter. Royal Bank of Canada now owns 326,910 shares of the technology company's stock worth $8,667,000 after buying an additional 69,122 shares in the last quarter. 95.66% of the stock is owned by institutional investors and hedge funds.

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.

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