Rapid7, Inc. (NASDAQ:RPD) Q4 2018 Earnings Conference Call - Final Transcript

Feb 07, 2019 • 04:30 pm ET


Rapid7, Inc. (NASDAQ:RPD) Q4 2018 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Fourth Quarter and Full Year 2018 Earnings Conference Call. (Operator Instructions). As a reminder, this conference is being recorded.

I would now like to turn the conference over to Neeraj Mahajan, VP of Investor Relations. You may begin.

Neeraj Mahajan

Thank you, operator, and good afternoon, everyone. We appreciate you joining us today to discuss Rapid7's fourth quarter financial and operating results, in addition to our financial outlook for the first quarter and full fiscal year 2019. With me on call today with Corey Thomas, our President and CEO; and Jeff Kalowski, our CFO. We've distributed our earnings press release over the wire and it is now posted on our website at investors.rapid7.com, along with the updated company presentation and financial slides. This call is being broadcast live via webcast and following the call, an audio replay will be available at investors.rapid7.com, until February 14, 2019.

As a reminder, our discussion today contains forward-looking statements about events and circumstances that have not yet occurred including without limitations statements regarding our objectives for future operations and future financial and business performance. These forward-looking statements are based on our current expectations and beliefs and on information currently available to us. Actual outcomes and results may differ materially from the expectations contained in these statements due to a number of risks and uncertainties, including those contained in most recent quarterly report on Form 10-Q and subsequent reports will be filed with Securities and Exchange Commission. The information provided on this conference call should be considered in light of such risks. Actual results and the timing of certain events may differ materially from the results or timing predicted or implied by such forward-looking statements and reported results should not be considered as an indication of future performance. Rapid7 does not assume any obligation to update the information presented on this conference call except to the extent required by applicable law.

Our commentary today will primarily be non-GAAP terms and unless otherwise stated, we will be presenting results in accordance with ASC 606. Reconciliations between our GAAP and non-GAAP results and guidance can be found in today's earnings press release. At times in our prepared comments or in responses to your questions, we may offer incremental metrics to provide greater insights into the dynamics of our business or our quarterly results. Please be advised that this additional detail maybe one-time in nature and we may or may not provide an update in the future on these metrics.

With that, I would like to turn the call over to Corey.

Corey E. Thomas

Thank you, Neeraj, and good afternoon, everyone. Thank you all for joining us today on our fourth quarter and full year 2018 earnings call. Rapid7 had a great fourth quarter, capping off a very strong 2018. We are particularly pleased with the acceleration in the adoption of our cloud-based offerings. For the sixth quarter in a row, our ARR growth accelerated, reaching 53% driven by continued strong new customer growth,