BOSTON—Thomas Corey E., CEO of Rapid7, Inc. (NASDAQ:), a cybersecurity firm with a market capitalization of $2.52 billion and a “GOOD” InvestingPro Financial Health score, recently reported a series of stock transactions involving the company’s common stock. On January 2, Corey sold a total of 50,000 shares, generating approximately $1.99 million. The transactions occurred at prices ranging from $39.32 to $41.29 per share, near current trading levels of $39.81.
In addition to the sales, Corey exercised stock options to acquire 50,000 shares at a price of $9.77 per share, amounting to a total of $488,500. Following these transactions, Corey holds 431,469 shares directly, with additional shares held indirectly through family holdings and a trust. According to InvestingPro, the company shows promising growth with revenue increasing by 10.05% over the last twelve months, and analysis suggests the stock is currently trading below its Fair Value.
These transactions were conducted under a pre-arranged trading plan, commonly known as a 10b5-1 plan, which allows insiders to set up a schedule for selling shares to avoid potential conflicts of interest. For deeper insights into Rapid7’s valuation and growth prospects, including 8 additional ProTips and comprehensive financial analysis, visit InvestingPro.
In other recent news, Rapid7, a significant player in security analytics and automation, reported a steady growth trajectory in its Q3 2024 earnings. The company’s revenue increased by 8%, reaching $215 million, while its Annual Recurring Revenue (ARR) grew by 6%, totaling $823 million. However, the ARR fell slightly short of expectations, which the company attributed to extended deal cycles, primarily affecting larger deals in North America.
Rapid7 also made strategic changes by launching the Exposure Command platform and shifting towards partner-based initiatives, contributing to a 70% increase in pipeline creation for risk management solutions. The company now attributes 90% of new ARR bookings to these partnerships.
Recent developments also include a revision in full-year ARR outlook to a range of $835 million to $845 million. The full-year revenue guidance has been raised to between $839 million and $841 million, with Q4 expected to fall between $211 million and $213 million. Rapid7 anticipates a flat to mild acceleration in total ARR growth for 2025, reflecting cautious optimism due to extended sales cycles. Despite these challenges, the company remains committed to its growth strategy, focusing on enhancing detection and response capabilities, expanding the partner ecosystem, and accelerating cloud security adoption.
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