Cybersecurity software provider Rapid7 (NASDAQ: RPD) will be announcing earnings results this Tuesday after market close. Here’s what to look for.
Rapid7 beat analysts’ revenue expectations last quarter, reporting revenues of $217.4 million, flat year on year. It was a softer quarter for the company, with full-year guidance of slowing revenue growth and full-year revenue guidance missing analysts’ expectations significantly.
Is Rapid7 a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Rapid7’s revenue to decline 1.1% year on year, a reversal from the 2.5% increase it recorded in the same quarter last year.
The majority of analysts covering the company have 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.
Looking at Rapid7’s peers in the cybersecurity segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Tenable delivered year-on-year revenue growth of 9.6%, beating analysts’ expectations by 1.2%, and Varonis Systems reported revenues up 26.9%, topping estimates by 4.6%. Tenable traded down 2.7% following the results while Varonis Systems was up 7.3%.
Read our full analysis of Tenable’s results here and Varonis Systems’s results here.
There has been positive sentiment among investors in the cybersecurity segment, with share prices up 8.7% on average over the last month. Rapid7 is up 9.4% during the same time and is heading into earnings with an average analyst price target of $8.98 (compared to the current share price of $6.33).
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