Rapid7 Reports 2.5% Revenue Growth to $210.3 Million in Q1 2025

Rapid7, Inc. reported its financial results for the first quarter of 2025, revealing total revenue of $210.3 million, a 2.5% increase from $205.1 million in the same period last year. The growth was primarily driven by a $7.0 million increase in product subscription revenue, which rose to $203.9 million, while professional services revenue decreased by 22.8% to $6.3 million. The company recorded a net income of $2.1 million, compared to $1.4 million in the prior year, resulting in a net income per share of $0.03, up from $0.02.

In terms of operational metrics, Rapid7's customer base grew to 11,685, a 1.9% increase from 11,462 in the previous year. The annualized recurring revenue (ARR) also saw a year-over-year increase of 3.7%, reaching $837.2 million. The company’s gross margin improved to 71.7%, up from 70.3% in the prior year, attributed to a decrease in personnel costs and a shift in roles within the organization. However, total operating expenses increased to $150.9 million, up from $134.4 million, driven by higher research and development, sales and marketing, and general administrative costs.

Strategically, Rapid7 completed the acquisition of Noetic Cyber, Inc. in July 2024 for $51.2 million, enhancing its cybersecurity offerings. The company continues to focus on integrating its product lines and expanding its market presence, particularly in North America and internationally, where revenue from the rest of the world increased by $4.6 million. As of March 31, 2025, Rapid7 had cash and cash equivalents of $291.5 million and investments totaling $301.1 million, providing a solid liquidity position to support ongoing operations and strategic initiatives.

Looking ahead, Rapid7 anticipates continued growth in its customer base and revenue, driven by increased demand for integrated security solutions. The company is committed to investing in research and development to enhance its product offerings and maintain its competitive edge in the cybersecurity market. However, it also acknowledges potential challenges, including economic uncertainties and competitive pressures that could impact its growth trajectory.