Q2 2024 Rapid7 Inc Earnings Call Transcript
Key Points
- Rapid7 Inc (RPD) ended the second quarter with $816 million in ARR, representing 9% growth over the prior year.
- The company's consolidated threat complete offerings drove over 40% of new ARR in the quarter.
- Sales pipeline generated across strategic partners grew 15% year over year in the second quarter.
- Rapid7 Inc (RPD) introduced its new command platform at Black Hat, which aims to provide integrated risk visibility across the full attack surface.
- The company reported a total revenue of $208 million for the second quarter, growing 9% over the prior year and exceeding the guided range.
- ARR growth in the second quarter was weighted towards sales expansion, with total customer base growing only 2% year over year.
- Professional services revenue declined sequentially as the company continues to deemphasize certain lower-value services.
- The demand environment continues to be choppy, with relative stability in customer spending trends expected to continue.
- Incremental costs in the second half of the year related to the Noetic acquisition and higher advisory and legal fees are expected to impact profitability.
- The company is facing budget pressures from customers, which could impact future growth and spending.
Thank you for standing by. I'd like to welcome everyone to the Rapid7 second-quarter 2024 earnings call. (Operator Instructions)
Thank you. I would now like to turn the call over to Elizabeth Schrock, Director of Investor Relations at Rapid7. Please go ahead.
Thank you, operator, and good afternoon, everyone. We appreciate you joining us today to discuss Rapid7's second-quarter 2024 financial and operating results in addition to our financial outlook for the third 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 business that are
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