Rapid7 reports 2021 revenue of $535 million, beats Wall Street estimates

The security automation technology firm delivered fourth quarter revenue of $151.6 million, up 34% from a year ago.
Written by Jonathan Greig, Contributor

Security automation technology firm Rapid7 beat Wall Street estimates on Wednesday, reporting strong growth throughout 2021.

Rapid7 delivered fourth quarter revenue of $151.6 million, up 34% from a year ago. For the fourth quarter, Rapid7's non-GAAP earnings of -$0.16 a share were above expectations. 

Wall Street was expecting Rapid7 to report fourth quarter earnings of -$0.17 a share on revenue of $145.88 million. 

For 2021, Rapid7 reported a total revenue of $535.3 million and a products revenue of more than $500 billion. The company grew its customer base last year from 8,718 to 10,283. 

"We ended 2021 on a high note, delivering strong fourth quarter results across our security transformation and vulnerability management solutions," said Corey Thomas, chairman and CEO of Rapid7.

"We grew ARR by 38% during the year while eclipsing 10,000 customers globally, highlighting our team's strong execution and the growing need for customers to manage increasingly complex security environments."

Product revenue in Q4 2021 was up 35% compared to Q4 2020 at $141.2 million. Professional services revenue was $10.3 million for the fourth quarter, an increase of 18% compared to the same quarter of 2020.

The company is predicting a Q1 revenue in the range of $153 million and $155 million and a non-GAAP net loss in the range of $0.18 and $0.15.

For the full year, the company is expecting a revenue between $682 million and $690 million as well as an EPS between $0.05 and $0.16. 

In July 2021, Rapid7 announced it was spending $335 million in cash and stock to buy New York-based, privately held cybersecurity company IntSights to add "outside the wire" capabilities. 

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