Shares of Rapid7 Inc. rose slightly in after-hours trading today after the cybersecurity solutions provider reported beats in its fiscal 2025 first quarter, but its second-quarter outlook fell slightly short of expectations.

For the quarter ended March 31, Rapid7 reported diluted adjusted earnings per share of 49 cents, down from 55 cents in the same quarter of 2024, on revenue of $210.3 million, up 3% year-over-year. Both figures were ahead of the 34 cents per share and revenue of $208 million expected by analysts.

Rapid7 ended the quarter with $837.2 million in annual recurring revenue, up 4% year-over-year and had 11,685 customers, up 2%. Annual recurring revenue per customer was $71,600, up 2% year-over-year.

Business highlights in the quarter included Rapid7 expanding its exposure management capabilities in February with the introduction of sensitive data discovery across multicloud environments. The enhancement integrates with Amazon Web Services’ Macie, Google Cloud’s DLP and Microsoft Corp.’s Defender to allow organizations to identify and classify sensitive data more effectively.

Rapid7 also launched an artificial intelligence-powered vulnerability scoring system that is designed to improve the precision of risk prioritization. The system applies machine learning to vulnerability data to streamline remediation workflows and help organizations focus on the most urgent threats. The developments reflect a broader effort to move beyond traditional Common Vulnerability Scoring System-based assessments.

The quarter also saw Rapid7 improve operational efficiency with upgrades to its Surface Command and Remediation Hub. The updates include embedded remediation guidance, enhanced asset context from third-party tools and centralized reporting through an executive risk view. Together, the changes are designed to reduce response times and support more informed security decisions.

“We had a slower start to 2025 than anticipated however we have a clear strategy and strong conviction in our long-term opportunity,” Chief Executive Corey Thomas said in the company’s earnings release. “Against a more uncertain macroeconomic environment, we are executing with increased focus and urgency, investing behind our leadership in MDR, accelerating Exposure Command adoption and sharpening our go-to-market engine.”

For its fiscal second quarter, Rapid7 expects adjusted earnings per share of 43 to 46 cents on revenue of $211 million to $213 million. The revenue outlook was a miss, as analysts had been expecting $214.4 million.

For the full year, the company expects adjusted earnings per share of $1.78 to $1.91 on revenue of $853 million to $863 million.

Photo: Rapid7