Cybersecurity solutions provider Rapid7 Inc. announced alongside its quarterly earnings report today that it’s laying off staff amid reports that it has received a takeover bid from a private equity firm.

In a filing with the U.S. Securities and Exchange Commission, Rapid7 said it’s laying off about 18% of its workforce as part of a restructuring plan. The Boston Globe puts the number of employees being laid off at about 470. The company estimates that the layoffs will result in $24 million to $32 million in severance and other costs, noting that the execution of the restructuring plan, including cash payments, will mostly be complete by the end of its fourth quarter.

In a message sent to employees from Rapid7 Chief Executive Officer Corey Thomas and shared in a blog post, the restructuring was pitched as the company “making decisions from a place of strength” that “allows us the opportunity to restructure intentionally.”

Thomas argues that though Rapid7 has been meeting performance expectations, “in today’s complex hybrid environments with highly-capable and innovative attackers, customers demand efficacy and efficiency, and integration across solutions is becoming imperative.” He later claims that when it comes to consolidation to address change in the industry, Rapid 7 and others have been too slow to adjust.

“Our rapid growth in the cybersecurity upswing enabled us to add market-leading capabilities quickly, however, as we have grown our employee base to meet demand, spun up teams quickly, and expanded to new regions, it has also created unnecessary friction and inefficiencies which hinder our customer experience,” Thomas wrote.

All employees being laid off are eligible to receive severance packages, including continued healthcare coverage for the duration of the severance period and outplacement services for career support.

Although the layoffs rightly were the focus on Rapid7 news today, the company also reported its earnings for its fiscal second quarter.

For the quarter that ended June 30, Rapid7 reported adjusted earnings of 18 cents per share on revenue of $190.42 million, the latter up 14% year-over-year. Analysts were expecting 11 cents and $188.1 million.

Annual recurring revenue sat at $750.85 million as of June 30, up 14% year-over-year, and annual recurring revenue per customer rose 7%, to $66.5 million. The number of customers rose 6%, to 11,287.

Recent business highlights include the July 18 launch of “Executive Risk View” for streamlining scoring. Executive Risk View has been designed with the aim of aiding security leaders in assessing risks effectively and improving collaboration with teams throughout an organization for enhanced cyber risk reduction.

Looking ahead, Rapid7 expects adjusted earnings per share of 41 to 44 cents on revenue of $196 million to $198 million in its fiscal third quarter and $1.23 to $1.29 and $771 million to $775 million for the full year.

Investors liked the numbers and the layoffs, and Rapid7 shares shot up just over 15% in late trading after falling almost 6% in regular trading.

The renewed reports from the Boston Globe and others that Rapid7 may have received a takeover offer from a private equity firm may have also driven the lift in share price but remains unconfirmed by the company itself. Reports that Rapid7 was exploring a sale first emerged in February and have appeared online and in the media at various points since.

Image: Rapid7