Rapid7 reported third-quarter results with the firm's sales contracting 2.5% to $212 million and its adjusted operating margins expanding 5 points to 22%. The firm's detection and response, or DR, solution constitutes 55% of its annual recurring revenue and grew 5%, with overall ARR down 2%.
Rapid7 has strong secular tailwinds in endpoint security and security operations where both markets are projected to grow rapidly.
The firm will likely have poor operating leverage and cash flow for the next few years, making it difficult to invest in order to stay competitive.
Metric | RPD | TENB | CRWD |
|---|---|---|---|
Price/Earnings (Normalized) | 11.52 | 36.66 | 196.29 |
Price/Book Value | 4.55 | — | 43.53 |
Price/Sales | 1.17 | 4.60 | 41.12 |
Price/Cash Flow | 6.79 | 19.70 | 108.17 |
Metric | RPD | TENB | CRWD |
|---|---|---|---|
Quick Ratio | 0.76 | 0.91 | 1.37 |
Current Ratio | 0.83 | 1.04 | 1.57 |
Interest Coverage | 0.73 | 1.55 | −2.96 |
Metric | RPD | TENB | CRWD |
|---|---|---|---|
Return on Assets (Normalized) | 8.09% | 14.56% | 10.64% |
Return on Equity (Normalized) | 79.51% | 111.70% | 26.00% |
Return on Invested Capital (Normalized) | 11.44% | 35.59% | 19.53% |
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