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According to a recent report, the global security analytics market is expected to grow from $10.9 billion in 2021 to $24.4 billion in 2026 at 17% CAGR. Rapid7 (Nasdaq: RPD), a leading provider of security analytics and automation, recently announced its fourth-quarter results that continued to outpace market expectations.

Rapid7’s Financials

Rapid7’s revenues for the fourth quarter grew 34% to $151.64 million, ahead of the market’s expectations of $145.89 million. Non-GAAP net loss was $8.9 million or $0.16 per share compared with the Street’s forecast of a loss of $0.17 per share.

By segment, revenues from products grew 35% to $141.3 million and professional services revenues grew 18% to $10.4 million.

By region, revenues from North America grew 29% to $120.9 million and the rest of the world grew 59% to $30.8 million. Total ARR grew to $599.02 million, up 17%.

For the full year, Rapid7’s revenues grew 30% to $535.4 million and loss was $0.05 per share.

For the first quarter, Rapid7 forecast revenues of $153-$155 million and a loss of $0.18-$0.15 per share. The Street was looking for revenues of $151.91 million and a loss of $0.16 per share. Rapid7 expects to end the current year with revenues of $682-$690 million and earnings of $0.05 to $0.16 per share. The market had forecast revenues of $681.46 million and earnings of $0.12 per share.

Rapid7’s Growth Focus

Rapid7’s growth in the quarter was driven by its ability to cross-sell across its portfolio. Overall ARR grew 31% over the year, and ARR per customer grew 17% to $58.3K in the quarter suggesting growth in up-sell and cross-sell opportunities. Rapid7 is continuing to drive the cross-sell by following a three-pronged strategy for growth.

First, it is focusing on its Insight platform which provides customers with a broad-based integrated suite of security operation solutions. It has added to the solution’s capabilities by adding platform services, including SOAR and threat intelligence to provide security teams with comprehensive visibility, analytics, and observation that are needed to manage a dynamic IT environment. The solution is seeing strong demand from its customers and now represents the majority of Rapid7’s total ARR.

The second focus area is Rapid7’s incident detection response, InsightIDR. By combining data collection capabilities on its Insight platform with detections from the analysis of attacker behavior and integrating it with user behavior analysis and compliance dashboards, Rapid7 is able to build a comprehensive offering. It has extended the capability of this product by including endpoint detection and forensics and network traffic analysis to provide more comprehensive visibility across customer environments as well as embedding automation to drive productivity to help customers deliver better security outcomes.

Lastly, it is focusing on its cloud-native security platform Insight Cloud Sec. The acceleration of digital transformation is disrupting security programs globally. Insight Cloud Sec is providing solutions geared toward cloud posture management, cloud workload protection, and cloud identity and entitlement management.

Recently, Rapid7 also announced the creation of the Rapid7 Cybersecurity Foundation. The foundation will work to close the security achievement gap by making cybersecurity easier to access for the underrepresented and underserved. By promoting a diverse and inclusive cyber workforce, supporting free and open security solutions, and advocating for those that lack a voice in advancing security, Rapid7 Cybersecurity Foundation is working to democratize cybersecurity. The foundation will invest in organizations that specialize in STEM education, diversity, and inclusion in technology to make careers in cybersecurity easier to access, open-source tools, and volunteering to make effective cybersecurity solutions available to under-resourced organizations.

Its stock is trading at $106.25 with a market capitalization of $6.17 billion. It hit a record high of $145.00 in November last year and a 52-week low of $72.96 in May last year.