Cybersecurity software provider Rapid7 (NASDAQ: RPD) will be reporting earnings this Tuesday after the bell. Here’s what you need to know.
Rapid7 beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $214.2 million, up 3% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations. It lost -42 customers and ended up with a total of 11,643.
Is Rapid7 a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Rapid7’s revenue to be flat year on year at $215.9 million, slowing from the 8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.46 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Rapid7 has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.5% on average.
Looking at Rapid7’s peers in the cybersecurity segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Tenable delivered year-on-year revenue growth of 11.2%, beating analysts’ expectations by 2.1%, and Varonis Systems reported revenues up 9.1%, falling short of estimates by 2.7%. Tenable’s stock price was unchanged after the resultswhile Varonis Systems was down 48.7%.
Read our full analysis of Tenable’s results here and Varonis Systems’s results here.
Investors in the cybersecurity segment have had fairly steady hands going into earnings, with share prices down 1% on average over the last month. Rapid7 is up 1.5% during the same time and is heading into earnings with an average analyst price target of $23.81 (compared to the current share price of $18.88).
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