Rapid7, Inc. reported significant financial improvements in its third quarter and year-to-date results for the period ending September 30, 2024, compared to the same period in 2023. The company achieved total revenue of $214.7 million for the three months ended September 30, 2024, an increase of 8.0% from $198.8 million in the prior year. For the nine months ended September 30, 2024, total revenue reached $627.7 million, up 9.7% from $572.4 million in 2023. The growth was primarily driven by a rise in product subscriptions, which accounted for $205.6 million in Q3 2024, reflecting an 8.3% increase from $189.9 million in Q3 2023.
The company's gross profit for the third quarter was $151.6 million, compared to $141.0 million in the same quarter of 2023. Total operating expenses decreased to $137.7 million from $157.1 million year-over-year, resulting in a notable turnaround in net income. Rapid7 reported a net income of $16.6 million for Q3 2024, a significant recovery from a net loss of $76.6 million in Q3 2023. For the nine-month period, net income was $27.0 million, compared to a net loss of $169.3 million in the previous year.
The company’s balance sheet showed total current assets of $672.6 million as of September 30, 2024, up from $634.5 million at the end of 2023. Cash and cash equivalents increased to $222.6 million, while total liabilities decreased to $1.58 billion from $1.62 billion at the end of 2023. The total stockholders’ deficit improved to $(6.3) million from $(118.2) million at the end of the previous fiscal year.
Strategically, Rapid7 made significant acquisitions, including Noetic Cyber, Inc. for $51.0 million in July 2024, which included contingent consideration based on performance targets. The company also acquired Minerva Labs Ltd. in March 2023 for $34.6 million. Additionally, Rapid7 implemented a restructuring plan in August 2023, resulting in a workforce reduction of approximately 16%, which contributed to the decrease in operating expenses.
Overall, Rapid7's performance in Q3 2024 reflects a strong recovery and strategic growth, positioning the company favorably in the cybersecurity market.
About Rapid7, Inc.
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