When examining Rapid7 net worth, it’s essential to understand the factors contributing to its financial growth. In 2024, Rapid7’s market cap is estimated at $2.55 billion, driven by key revenue streams and strategic acquisitions.
At Ando Money, we aim to provide readers with comprehensive financial insights into leading companies like Rapid7.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Rapid7 |
| Full Name | Rapid7, Inc. |
| Website | https://www.rapid7.com |
| Industry | Cybersecurity |
| Traded as | Nasdaq: RPD |
| ISIN | N/A |
| Founded | 2000 |
| Founders | Alan Matthews, Tas Giakouminakis, Chad Loder |
| Country/Territory | United States |
| Headquarters | Boston, Massachusetts |
| Chief Executive Officer | Corey Thomas |
| Number of Employees | 2,716 |
| Market Cap | $2.55 billion |
| Total Assets | $1.53 billion |
| Total Equity | $52.9 million deficit |
| Revenue | $208 million (Q2 2024) |
| Net Income | $8.2 million (Q2 2024) |
What is the Net Worth/Market Cap of Rapid7 in 2024?
Rapid7’s estimated market cap for 2024 is $2.55 billion, showcasing significant growth in its cybersecurity operations.
This market value reflects the company’s expanding global presence and strategic acquisitions that drive recurring revenue.
While Rapid7 continues to grow, it still falls short compared to some of the biggest names in cybersecurity.
For comparison, here are some competitors or related companies:
- Palo Alto Networks
- CrowdStrike
- Fortinet
- Splunk
- Check Point Software
- Proofpoint
- Tenable
- FireEye
- Qualys
- Darktrace
These companies operate in similar sectors, with some achieving significantly higher market caps, contributing to the most valuable companies in the sector.
For an in-depth look at the wealthiest brands, explore more successful companies here.
Rapid7 Financial Performance Overview
Key Revenue Streams and Growth Drivers
Rapid7’s primary revenue comes from its subscription-based products, which accounted for $200 million in Q2 2024, a 10% increase year-over-year.
These subscriptions provide essential cybersecurity services to companies worldwide, with a consistent demand that continues to expand.
Additionally, the annual recurring revenue (ARR) for Rapid7 reached $816 million, demonstrating a 9% growth from the previous year.
This recurring revenue structure is crucial for the company’s steady financial performance.
Impact of Acquisitions on Financial Growth
Strategic acquisitions have played a significant role in driving Rapid7’s financial success.
For instance, the acquisition of Noetic Cyber expanded Rapid7’s asset management capabilities, which has further strengthened its product offerings.
The integration of companies like Noetic helps improve customer retention and overall service quality, directly contributing to the company’s revenue growth.
Regional Revenue Distribution
Revenue generation is split across different regions, with North America contributing $159.32 million in Q2 2024, showing a 6% increase from the previous year.
Meanwhile, the rest of the world recorded $48.67 million, reflecting a 19% increase, indicating a strong global growth trajectory for the company.
This regional expansion shows Rapid7’s ability to capture markets outside its home base and contribute to its overall revenue.
Operational Efficiency and Profitability Metrics
Rapid7’s operating income also shows a significant improvement.
For Q2 2024, the company reported a GAAP operating income of $7 million and a non-GAAP operating income of $39 million.
The gross profit margin stood at 71%, with a non-GAAP margin of 74%, indicating effective cost management and operational efficiency.
Cash Flow and Liquidity Analysis
The company’s ability to generate free cash flow is an essential indicator of its financial health.
In Q2 2024, Rapid7 produced $29.2 million in free cash flow, up from $25.6 million in the same quarter last year.
Net cash provided by operating activities was $32.9 million, reflecting stable liquidity and strong cash management practices.
Impact of Research and Development on Revenue
Investments in research and development (R&D) are crucial for maintaining competitiveness in the cybersecurity space.
Rapid7 spent $40 million on R&D in Q2 2024, focusing on innovative security solutions, particularly in extending its capabilities in managed detection and response services.
This investment contributes directly to enhancing the company’s product line, ensuring that it stays ahead of evolving cyber threats.
Sales and Marketing Expenditure’s Role in Financial Performance
Sales and marketing are also essential to Rapid7’s financial performance, as the company spent $77.8 million on these efforts in Q2 2024.
These investments focus on acquiring new customers and retaining existing ones through targeted campaigns.
This spending helps drive subscription growth and ensures that the company can expand its customer base across regions.
Future Revenue Projections and Guidance
Looking ahead, Rapid7 has provided revenue guidance for Q3 2024, expecting total revenues between $209 million and $211 million.
For the full year 2024, the company anticipates revenues between $833 million and $837 million, with an ARR projection of $850 to $860 million.
These projections show continued confidence in the company’s ability to grow and deliver value to its shareholders.
FAQs about Rapid7
How does Rapid7 generate its revenue?
It generates most of its revenue from subscription-based products and services. These subscriptions provide continuous cybersecurity solutions to businesses worldwide, ensuring stable recurring revenue streams.
What regions contribute the most to Rapid7’s revenue?
Rapid7’s revenue is primarily driven by North America, contributing $159.32 million in Q2 2024.
The company also sees strong growth from the rest of the world, which brought in $48.67 million, showing substantial international expansion.
How has Rapid7’s operating income changed over time?
Rapid7’s GAAP operating income for Q2 2024 was $7 million, a significant improvement from past losses, while non-GAAP operating income reached $39 million, highlighting the company’s operational efficiency.
What is Rapid7’s projected revenue for the upcoming year?
For Q3 2024, Rapid7 expects revenues to be between $209 million and $211 million, with full-year revenues projected between $833 million and $837 million.
What role do acquisitions play in Rapid7’s growth?
Acquisitions like Noetic Cyber have been instrumental in broadening Rapid7’s product offerings. These acquisitions enhance the company’s cybersecurity capabilities, driving both revenue and customer growth.
Conclusion
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