Q1 2024 Rapid7 Inc Earnings Call Transcript
Key Points
- Rapid7 Inc (RPD) reported an 11% year-over-year growth in ARR, reaching $807 million in the first quarter of 2024.
- The company saw strong performance in its detection and response business, maintaining over 20% growth year-over-year.
- Revenue for the first quarter was $205 million, a 12% increase from the previous year, and at the high end of the guidance range.
- Rapid7 Inc (RPD) is making strategic long-term investments to enhance its security operations platform, focusing on AI-driven solutions and expanding cloud security capabilities.
- The company is actively working on improving its integrated risk management offerings, with plans to launch an updated Cloud Risk Complete solution in the summer of 2024.
- The ending ARR for the first quarter was below expectations due to a slower-than-anticipated transition of the BM base to the integrated risk offering.
- Rapid7 Inc (RPD) experienced a slowdown in new pipeline generation as it transitioned away from lower quality, less efficient sources.
- The company has revised its full-year 2024 guidance downward, reflecting a slower start to the year and modest contributions expected from the new Cloud Risk Complete offering.
- There was a noticeable decline in the non-platform customer base, indicating challenges in traction for the integrated risk offering.
- Despite efforts to improve execution, there are ongoing challenges with the transition and integration of new sales strategies, impacting short-term growth.
Thank you for standing by. My name is Eric and I will be your conference operator today. At this time, I would like to welcome everyone to the Rapid7 First Quarter 2024 Earnings Call. (Operator Instructions)
Thank you. I would now like to turn the call over to Elizabeth Chwalk. Please go ahead.
Thank you, operator, and good afternoon, everyone. We appreciate you joining us today to discuss Rapid7's First Quarter 2024 Financial and Operating Results, in addition to our financial outlook for the second quarter and full fiscal year 2024.
With me on the call today are Corey Thomas, our CEO, and Tim Adams, our CFO. We have distributed our earnings press release over the wire, and it is now posted on our website at investors.rapid7.com, along with the updated company presentation and financial metrics file. This call is being broadcast live via webcast, and following the call, an audio replay will be available at investors.rapid7.com.
During this call, we may make statements related to our
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