Rapid7 beats estimates, raises profit outlook and cuts 12% of staff
Shares in Rapid7 Inc. were up more than 8% in late trading today after the cybersecurity company beat second-quarter earnings and revenue estimates while disclosing plans to cut roughly 12% of its workforce.
For the quarter ended on June 30, Rapid7 reported adjusted earnings of 44 cents per share, down from 58 cents a year earlier, on revenue of $210.9 million, a decline of 1.5% year-over-year. Analysts were expecting 35 cents per share on revenue of $208 million.
Rapid7 said about 12% of its workforce has been notified that their positions are affected. Its board approved the plan on Aug. 7. The cost will run $10 million to $11 million, most of it severance, and the company expects to have paid out substantially all of it by the end of the year. Rapid7 employed 2,613 people at the end of December. That puts the cut at roughly 310 jobs. Eliminations in some countries have to clear local consultation rules first, and those may run past the fourth quarter.
“Rapid7 is a good company ready to be great, but getting there requires clear choices, strong execution, and the discipline to focus on what matters most,” Chief Executive Wael Mohamed said in the earnings release.
