Rapid7 IncQ2 earnings and revenue beat estimates, and guidance was provided, driving shares up over 17%.

Rapid7 shares surged over 17% after the cybersecurity firm reported second-quarter results that beat estimates and announced a 12% workforce reduction. Non-GAAP earnings per share came in at $0.44, exceeding consensus by $0.09, while revenue of $210.88 million topped expectations by $2.63 million despite a 1.5% year-over-year decline. Annualized recurring revenue fell 2% to $824 million. The company said the layoffs, which occurred in the second quarter, will result in restructuring charges of approximately $10 million to $11 million in the third and fourth quarters, and CEO Wael Mohamed stated the move is expected to improve free cash flow in 2027. For the third quarter, Rapid7 guided revenue of $208 million to $210 million and non-GAAP EPS of $0.44 to $0.47, while full-year revenue is projected at $837 million to $841 million with adjusted EPS of $1.78 to $1.83.
Rapid7 IncQ2 earnings and revenue beat estimates, and guidance was provided, driving shares up over 17%.