Rapid7 Reports 8.5% Revenue Growth to $844M and Returns to Profitability in 2024

Rapid7, Inc. reported significant financial growth in its latest 10-K filing for the fiscal year ending December 31, 2024, with total revenue reaching $844.0 million, an increase of 8.5% from $777.7 million in 2023. The company achieved a net income of $25.5 million, a notable turnaround from the net loss of $152.8 million in the previous year. This shift to profitability is attributed to a combination of increased sales from existing customers and new customer acquisitions, alongside a strategic focus on consolidating its product offerings.

The company’s recurring revenue, which includes income from term software licenses, content subscriptions, managed services, and cloud-based subscriptions, constituted 96% of total revenue in 2024, up from 95% in 2023. Rapid7's customer base expanded to over 11,700, with a year-over-year growth of 1.7%. The average annual recurring revenue (ARR) per customer also increased to $71.6 thousand, reflecting a 2.5% growth compared to the previous year. The company’s international operations contributed 24% of total revenue, indicating a steady expansion in global markets.

Strategically, Rapid7 has made significant moves to enhance its product offerings and market position. In July 2024, the company acquired Noetic Cyber, Inc., a provider of cyber attack surface management technology, for approximately $51.2 million. This acquisition is expected to bolster Rapid7's capabilities in providing comprehensive visibility to customers regarding their attack surfaces. Additionally, the company has focused on integrating its Command Platform, which combines various security solutions, to meet the evolving needs of its customers in a landscape increasingly driven by cyber threats.

Operationally, Rapid7 has undergone a restructuring plan aimed at improving efficiency and reducing costs, which included a workforce reduction of approximately 16%. This restructuring is expected to yield long-term benefits, although it resulted in a one-time charge of $22.2 million in 2023. The company also reported a decrease in operating expenses as a percentage of revenue, reflecting improved operational efficiency. As of December 31, 2024, Rapid7 had 2,413 employees, a slight increase from the previous year, indicating a focus on maintaining a skilled workforce to support its growth initiatives.

Looking ahead, Rapid7 remains optimistic about its growth trajectory, emphasizing continued investment in product innovation and international expansion. The company plans to leverage its strong customer relationships and enhance its service offerings to drive future revenue growth. However, it acknowledges potential challenges, including economic uncertainties and competitive pressures, which could impact its performance. The management's forward-looking statements suggest a commitment to navigating these challenges while capitalizing on opportunities in the cybersecurity market.