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The company launched Rapid7 Intelligence, a new engine that combines its security research with AI to help companies stop attacks before they happen. Instead of just alerting IT teams when something goes wrong, the tool is designed to automatically act on data about how hackers behave.
This is a key step in the company's plan to move away from older security tools and toward an AI-driven model. If this new engine can successfully automate the tedious work of sorting through security alerts, it could help the company win back customers and reverse its recent slight drop in recurring revenue.
Source: GlobeNewsWire
JPMorgan downgraded the company to its lowest rating, suggesting the stock will likely perform worse than others in the market. While the average analyst target for the stock is around $12, the shares are currently trading higher than that level.
This downgrade is a signal that some major firms are skeptical of the company's turnaround plan. Even though the business is shifting toward AI-powered security, analysts are watching to see if this new focus can grow fast enough to make up for the decline in its older, legacy products.
Management has a long history of clearing the bars they set for themselves. They have beaten profit expectations in seven of the last eight quarters, suggesting they know how to manage their costs even as total revenue shrinks.
| Expectation | |
|---|---|
| EPS | $0.46 |
| Revenue | $209M |