Cybersecurity software provider Rapid7 (NASDAQ:RPD) will be reporting results this Monday after the bell. Here’s what investors should know.
Rapid7 beat analysts’ revenue expectations last quarter, reporting revenues of $209.7 million, flat year on year. It was a mixed quarter for the company, with a solid beat of analysts’ adjusted operating income estimates.
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 2.9% year on year, a reversal from the 3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will 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 Q2 results, giving us a hint as to what we can expect. Qualys delivered year-on-year revenue growth of 11%, beating analysts’ expectations by 2%, and Tenable reported revenues up 8.6%, topping estimates by 1.4%. Qualys traded up 13.8% following the results while Tenable was also up 3.4%.
Read our full analysis of Qualys’s results here and Tenable’s results here.
There has been positive sentiment among investors in the cybersecurity segment, with share prices up 13.1% on average over the last month. Rapid7 is up 3.7% during the same time and is heading into earnings with an average analyst price target of $8.32 (compared to the current share price of $11.59).
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