- Annualized recurring revenue ("ARR”) of $840 million, an increase of 4% year-over-year
- Full-year revenue of $844 million, up 9% year-over-year; Product subscriptions revenue of $809 million, up 9% year-over-year
- Full-year GAAP operating income of $35 million; Full-year non-GAAP operating income of $164 million
- Full-year net cash provided by operating activities of $172 million; Free cash flow of $154 million
"As we reflect on 2024, I'm proud of the progress we made to position Rapid7 for long-term growth and success. We achieved $840 million in ARR and delivered over $150 million in free cash flow, while advancing our strategic priorities to innovate, scale, and empower our customers to consolidate and secure their operations more effectively. Continued momentum in Managed Detection and Response and the launch of our Exposure Command platform have further strengthened our ability to deliver measurable value for customers,” said Corey Thomas, Chairman and CEO of Rapid7.
"As we move through 2025, our focus remains on accelerating growth, deepening customer engagement, and driving innovation to solidify Rapid7 as the security operations platform of choice for organizations worldwide.”
Fourth Quarter 2024 Financial Results and Other Metrics
As of December 31, | |||||||||||
2024 | 2023 | % Change | |||||||||
(dollars in thousands) | |||||||||||
ARR | $ | 839,819 | $ | 805,670 | 4 | % | |||||
Number of customers | 11,727 | 11,526 | 2 | % | |||||||
ARR per customer | $ | 71.6 | $ | 69.9 | 2 | % |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||
Product subscriptions revenue | $ | 206,328 | $ | 194,819 | 6 | % | $ | 808,906 | $ | 740,168 | 9 | % | |||||||||||
Professional services revenue | 9,933 | 10,449 | (5 | %) | 35,101 | 37,539 | (6 | )% | |||||||||||||||
Total revenue | $ | 216,261 | $ | 205,268 | 5 | % | $ | 844,007 | $ | 777,707 | 9 | % | |||||||||||
North America revenue | $ | 163,014 | $ | 158,695 | 3 | % | $ | 643,405 | $ | 607,448 | 6 | % | |||||||||||
Rest of world revenue | 53,247 | 46,573 | 14 | % | 200,602 | 170,259 | 18 | % | |||||||||||||||
Total revenue | $ | 216,261 | $ | 205,268 | 5 | % | $ | 844,007 | $ | 777,707 | 9 | % | |||||||||||
GAAP gross profit | $ | 150,369 | $ | 145,442 | $ | 592,972 | $ | 545,661 | |||||||||||||||
GAAP gross margin | 70 | % | 71 | % | 70 | % | 70 | % | |||||||||||||||
Non-GAAP gross profit | $ | 157,902 | $ | 152,265 | $ | 622,343 | $ | 575,052 | |||||||||||||||
Non-GAAP gross margin | 73 | % | 74 | % | 74 | % | 74 | % | |||||||||||||||
GAAP income (loss) from operations | $ | 7,279 | $ | 10,000 | $ | 35,035 | $ | (84,288 | ) | ||||||||||||||
GAAP operating margin | 3 | % | 5 | % | 4 | % | (11 | )% | |||||||||||||||
Non-GAAP income from operations | $ | 39,995 | $ | 41,498 | $ | 163,508 | $ | 102,221 | |||||||||||||||
Non-GAAP operating margin | 18 | % | 20 | % | 19 | % | 13 | % | |||||||||||||||
GAAP net income (loss) | $ | 2,172 | $ | 19,116 | $ | 25,526 | $ | (152,815 | ) | ||||||||||||||
GAAP net income (loss) per share, basic | $ | 0.03 | 0.31 | $ | 0.41 | $ | (2.52 | ) | |||||||||||||||
GAAP net income (loss) per share, diluted | $ | 0.03 | $ | 0.26 | $ | 0.40 | $ | (2.52 | ) | ||||||||||||||
Non-GAAP net income | $ | 34,342 | $ | 51,691 | $ | 163,138 | $ | 107,232 | |||||||||||||||
Non-GAAP net income per share: | |||||||||||||||||||||||
Basic | $ | 0.54 | $ | 0.84 | $ | 2.61 | $ | 1.76 | |||||||||||||||
Diluted | $ | 0.48 | $ | 0.72 | $ | 2.28 | $ | 1.52 | |||||||||||||||
Adjusted EBITDA | $ | 46,310 | $ | 47,819 | $ | 188,450 | $ | 126,661 | |||||||||||||||
Net cash provided by operating activities | $ | 63,773 | $ | 63,466 | $ | 171,670 | $ | 104,278 | |||||||||||||||
Free cash flow | $ | 58,842 | $ | 60,254 | $ | 154,083 | $ | 84,034 | |||||||||||||||
Recent Business Highlights
- In November, Rapid7 won "Security Vendor of the Year” at the CRN Chan