Rapid7, Inc. (RPD): restructuring charge — Rapid7 Q2 beats guidance; plans 18% workforce reduction and $24-32M restructuring charges

Rapid7, Inc.

2023-Q2 EPS reported -$1.54 revenue$373,596,000

Q2 total revenue $190M (+14% YoY); ARR $751M (+14%); non-GAAP operating income $13M beat guidance.
GAAP net loss $66.8M ($1.10 per share); non-GAAP net income $11.5M ($0.18 diluted EPS).
Restructuring approved Aug 7: ~18% workforce cut; expects $24-32M charges ($22-30M cash) in H2 2023.
Office closures will result in ~$4M impairment loss in 2023.
Q3 guidance: revenue $196-198M, non-GAAP EPS $0.41-0.44; FY free cash flow ~$80M.

item 2.02 item 2.05 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Earnings Releases SEC 8-K Item 2.02 confidence 0.95

Rapid7, Inc. reported the second quarter of 2023 results: revenue $190,422, net income $(66,782), EPS $(1.10). Guidance lowered.

Period: the second quarter of 2023
Revenue: $190,422
Net income: $(66,782)
EPS: $(1.10)
Guidance: lowered
Result: reported results

Exact text from the filing

Ended June 30, 2023 2022 % Change (in thousands, except per share data) Products revenue $ 181,701 $ 159,122 14 % Professional services revenue 8,721 8,333 5 % Total revenue $ 190,422 $ 167,455 14 % North America revenue $ 149,683 $ 132,646 13 % Rest of world revenue 40,739 34,809 17 % Total revenue $ 190,422 $ 167,455 14 % GAAP gross profit $ 132,258 $ 113,180

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Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

Rapid7, Inc. announced a restructuring with charges of approximately $24-$32 million affecting company-wide (approximately 18%).

Type: restructuring
Charge: approximately $24-$32 million
Affected area: company-wide
Headcount: approximately 18%

Exact text from the filing

the “ Restructuring Plan ”). The Restructuring Plan includes reduction of the Company’s workforce by approximately 18%. The Company estimates that it will incur approximately $24-$32 million in charges in connection with the Restructuring Plan, consisting of cash expenditures for employee transition, notice period and severance payments and employee

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Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

Rapid7, Inc. announced a impairment with charges of approximately $4 million affecting certain office locations.

Type: impairment
Charge: approximately $4 million
Affected area: certain office locations

Exact text from the filing

In connection with the Restructuring Plan, the Company plans to permanently close certain office locations. This will result in an impairment loss of approximately $4 million that will be recorded during 2023 as the exit activities are finalized in each location.

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Rapid7, Inc. filing history →

Source: SEC EDGAR

accession 0001560327-23-000058

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