Rapid7, Inc. (RPD) saw its loss narrow to $10.54 million, or $0.25 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $15.58 million, or $0.38 a share. On the other hand, adjusted net loss for the quarter narrowed to $5.78 million, or $0.14 a share from a loss of $9.48 million or $0.23 a share, a year ago.

Revenue during the quarter surged 30.03 percent to $45.24 million from $34.80 million in the previous year period. Gross margin for the quarter contracted 207 basis points over the previous year period to 72.89 percent. Operating margin for the quarter stood at negative 23.14 percent as compared to a negative 44.89 percent for the previous year period.

Operating loss for the quarter was $10.47 million, compared with an operating loss of $15.62 million in the previous year period.

However, the adjusted operating loss for the quarter stood at $5.70 million compared to operating loss of $9.52 million in prior year period.

"We are off to a strong start in 2017. We achieved solid revenue and calculated billings growth, healthy operating leverage, and built further momentum across our business. As a result, we were able to modestly improve our revenue and operating loss guidance for 2017" said Corey Thomas, president and chief executive officer of Rapid7. "In early April, we took a major step forward in our product and platform evolution, with the addition of InsightVM, our cloud-based vulnerability management solution, to the Rapid7 Insight platform. InsightVM fully leverages the power of the cloud, our shared data collection infrastructure and leading threat intelligence to provide live answers to security professionals' most critical questions. By providing integrated solutions that reduce complexity and the total cost of ownership, we believe we can drive new customer growth and make it attractive for users to consolidate their security and IT analytics usage on our platform."

For the second-quarter 2017, Rapid7, Inc. expects revenue to be in the range of $45.40 million to $46.80 million. The company expects adjusted operating loss to be in the range of $8.30 million to $7.30 million. On an adjusted basis, the company projects diluted loss per share to be in the range of $0.20 to $0.18.

For fiscal year 2017, Rapid7, Inc. expects revenue to be in the range of $193 million to $198 million. The company expects adjusted operating loss to be in the range of $28 million to $25.50 million. It projects diluted loss per share to be in the range of $0.66 to $0.61 on adjusted basis.

The company has spent $7.84 million cash to meet investing activities during the quarter as against cash outgo of $1.09 million in the last year period.

Cash flow from financing activities was $2.10 million for the quarter as against cash outgo of $0.51 million in the last year period.

Cash and cash equivalents stood at stood at $50.66 million as at Mar. 31, 2017.

Working capital turns negative

Working capital of Rapid7, Inc. has turned negative to $16.98 million on Mar. 31, 2017 from positive $13.01 million on Mar. 31, 2016. Current ratio was at 0.88 as on Mar. 31, 2017, down from 1.12 on Mar. 31, 2016.

Days sales outstanding went up to 77 days for the quarter compared with 58 days for the same period last year.

At the same time, days payable outstanding went up to 20 days for the quarter from 19 for the same period last year.