BOSTON—Thomas Corey E., CEO of Rapid7, Inc. (NASDAQ:RPD), recently executed a significant stock transaction, according to a filing with the Securities and Exchange Commission. On January 21, Corey sold 100,000 shares of the cybersecurity company at a weighted average price of $39.38, generating approximately $3.94 million. The transaction comes as Rapid7, currently valued at $2.45 billion, maintains profitability with 10% year-over-year revenue growth.
In addition to the sale, Corey exercised stock options to acquire 100,000 shares at $9.77 per share, totaling $977,000. Following these transactions, Corey directly owns 431,469 shares of Rapid7. He also holds indirect ownership of additional shares through the Thomas Family Holdings LLC and a trust.
These transactions were conducted under a pre-arranged trading plan, as noted in the filing.
In other recent news, Rapid7 has reported a year-over-year growth in its third-quarter earnings for 2024. Despite a slight miss on the expected Annual Recurring Revenue (ARR), the company's revenue increased by 8%, and it ended the quarter with $823 million in ARR. Rapid7 has adjusted its full-year ARR outlook to $835 million to $845 million. The company also launched the Exposure Command platform, resulting in a 70% increase in pipeline creation for risk management solutions.
In terms of future expectations, Rapid7 anticipates flat to mild acceleration in total ARR growth for 2025 and has raised its full-year revenue guidance to $839 million to $841 million. The company is also planning to evolve its product offerings and pricing models to align with customer needs and enhance profitability. However, recent developments have shown that the company's ARR for Q3 2024 was slightly below expectations due to elongated deal cycles, particularly affecting larger deals in North America.
Rapid7 remains committed to enhancing detection and response capabilities, expanding the partner ecosystem, and accelerating cloud security adoption. The company is optimistic about the growth trajectory of its Detection and Response business, which constitutes half of its ARR. These recent developments provide investors with an understanding of Rapid7's performance and strategic direction.
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