Rapid7 Shares Tumble on Weak Q2 EPS Outlook, Results Still Seen as ‘Solid’ -Breaking
Shares of Rapid7 (NASDAQ:) had been down over 8% in pre-open buying and selling Thursday after the corporate issued weaker-than-expected revenue steerage for this quarter.
Rapid7 reported adjusted loss per share of 16c, in comparison with the loss per share of 3c within the year-ago interval and according to the consensus estimates. Income got here in at $157.4 million, up 34% YoY and above the consensus projection of $154.1 million.
For Q2, the cybersecurity and compliance options supplier expects adjusted loss per share within the vary of 3c to 7c, whereas analysts had been anticipating EPS of two.9c. RPD expects Q2 income within the vary of $163 million to $165 million, in comparison with the analyst consensus of $164.2 million.
For the total 12 months, Rapid7 expects adjusted EPS within the vary of 5c to 16c, in comparison with the consensus estimates of 11c.
The corporate expects FY income within the vary of $686 million to $692 million, up from its earlier forecast vary of $682 million to $690 million, whereas analysts had been on the lookout for $686.4 million.
“Rapid7’s sturdy begin to the 12 months was pushed by on-going momentum throughout our safety transformation and vulnerability administration options, as we sustained year-over-year ARR progress of 38%,” stated Corey Thomas, Chairman, and CEO of Rapid7.
Goldman Sachs analyst Brian Essex reduce the worth goal to $113.00 per share from $130.00 to replicate decrease peer multiples.
“Regardless of the strong ARR/income beat, the inventory traded decrease after hours which we imagine was as a result of lack of upside to FY22 ARR steerage and low buyer internet provides. Commentary throughout the name was optimistic with regard to the demand atmosphere, however administration famous that the corporate would reassess ARR steerage later within the 12 months. We’re inspired by one other quarter of execution with wholesome progress, however we stay Impartial rated as we see higher danger/reward elsewhere inside our protection universe,” Essex advised shoppers in a observe.
Mizuho analyst Gregg Moskowitz additionally lowered the worth goal to $110.00 per share from $135.00 once more on decrease competitors multiples.
“We proceed to imagine that RPD is nicely positioned within the SecOps market, as safety and IT operations groups more and more collaborate to successfully mitigate danger. We reiterate our Purchase score,” Moskowitz stated in a observe.
By Senad Karaahmetovic