Slide 1: Company Overview
November 1, 2023 Company Overview 1
Slide 2: Disclaimers
Disclaimers This presentation contains forward-looking statements. All statements contained in this presentation other than statements of historical facts, including, without limitation, statements regarding our market opportunity, demand for our product and service offerings, expectations regarding
Slide 3: Rapid7 Snapshot
Rapid7 Snapshot Strong Recurring High Quality Attractive Investing in Revenue Growth of Revenue Customer Profitable Economics Growth ARR growth of Recurring revenue 14% 95% 7% +750bp YoY 1 of total revenue 1 YoY growth in ARR per Non-GAAP Operating customer 1 Margin Expansion Projected in 2023 2 Attr
Slide 4: Managing Risk and Enabling Innovation
Managing Risk and Enabling Innovation Data keeps our Accelerated change connected society makes it tougher to functioning. stay ahead of risks. Security needs to keep up with the pace of We trust security innovation. teams to protect our data. Organizations need best-in-class security that is both s
Slide 5: Delivering on Our Mission
Best-in-Class Technology Delivering on Unite teams and tools with award-winning cloud products delivering visibility, analytics, and automation. Our Mission Unified Cloud Platform Make the most successful Enrich customer experiences with broad environment visibility, seamless integrations and ease of
Slide 6: Rapid7 Insight Platform
Rapid7 Insight Platform United teams work smarter, not harder. Our cloud platform helps Security, IT, and Development teams reduce risk across their entire connected environment. Unified access centrally manages vulnerabilities, monitors for misconfigurations and malicious behavior, investigates and s
Slide 7: Landing and Expanding Across Multiple Pillars
Landing and Expanding Across Multiple Pillars Threat Detection Cloud Vulnerability Risk & Response Security Management Threat Intelligence Intelligent Automation Shared Insight Engine Collection, Data, Analytics Services 7
Slide 8: Accessibility to Insight via Tailored SecOps Pillars
Accessibility to Insight via Tailored SecOps Pillars Threat Detection Cloud Vulnerability Risk & Response Security Management Shared Insight Engine Automation Orchestration Workflow Action Analytics User Behavior Attacker Behavior Vulnerability Prioritization Policy Compliance Identity Governance Rem
Slide 9: Best-in-Class Threat Detection & Response
Best-in-Class Threat Detection & Response Broad Visibility Across Cloud and On-premise Detection-oriented Analytics Automated Containment & Response Automation Custom Escalation Workflows Analytics UBA ABA ML Data Integrations Collection Cloud Endpoint Network 9
Slide 10: Best-in-Class Cloud Security
Best-in-Class Cloud Security Multi-cloud Risk Visibility & Analytics Extensible & Customizable to Connect Security and DevOps Teams Real-time Automated Remediation Automation Native & Integrated Analytics CIEM CWPP CSPM Data AWS Azure GCP OCI Collection Cloud 10
Slide 11: Best-in-Class Vulnerability Risk Management
Best-in-Class Vulnerability Risk Management Broad Visibility Across Traditional and Modern Environments Prioritize Risk with Advanced Analytics Automation-assisted Remediation Automation Custom Processes Workflows Analytics Attacker Behavior Vulnerability Prioritization Data Searchable Integrations C
Slide 12: Massive Market Opportunity
Massive Market Opportunity Top Down (2023) Bottom Up (2023) $40bn Under-Penetrated Opportunity $30bn ~$520k 2 ~$38 bn $20bn ~$31 bn ARR Opportunity for an average-sized customer $10bn Global Addressable IDC 1 Customer Opportunity > 74,000 3 1 Based on IDC Forecasts (WW Device VM 2023-2027, WW Cybers
Slide 13: Extensive Partner Ecosystem
Extensive Partner Ecosystem 500+ Platform Integrations 13
Slide 14: Rapid7 Global Threat Intelligence Community
Rapid7 Global Threat Intelligence Community Security expertise infused into everything we do Insight Customers Project Heisenberg 11k+ Global Customers Global Honeypot Network Service Engagements Project Sonar Field Insights from Leading Global MDR and Global Internet Scanning Services Organization
Slide 15: Industry Analyst Recognition
Industry Analyst Recognition A Strong Performer A Strong Performer A Challenger A Strong Performer Major Player The Forrester Wave™: The Forrester Wave™: 2022 Magic QuadrantTM for IDC MarketScape: The Forrester Wave™: MDR, Cloud Workload Security, Vulnerability Risk Security Information and Worldwid
Slide 16: Rapid7 for Social Good Beyond ESG
Rapid7 for Social Good Beyond ESG Rapid7 Core Values Diversity, Equity, & Inclusion Leverage diverse hiring practices and data-driven focus to advance a diverse workforce, Bring You inclusive culture, and equitable pay. Recognized in Bloomberg Gender Equality Index 2019, 2020, 2021, 2022, and 2023.
Slide 17: Financial Overview
RAPIDYD Financial Overview
Slide 18: Sustained Revenue Growth
Sustained Revenue Growth • 2022 revenue growth of 28% year-over-year • Revenue CAGR (2018 - 2022): 29% • Non-GAAP operating margin improvement of 300bp in 2022 18
Slide 19: Annualized Recurring Revenue
Annualized Recurring Revenue • ARR grew by 14% % year-over-year in Q3 2023 : 26 GR CA • ARR CAGR of 26% from Q3 2019 to Q3 2023 19
Slide 20: Upsells & Cross-Sells Drive ARR per Customer Growth
Upsells & Cross-Sells Drive ARR per Customer Growth • ARR per customer was 4% approximately $68.1k in Q3 2023 R: 1 CAG • ARR per customer CAGR of 14% from Q3 2019 to Q3 2023 ARR per customer is based on the new customer count methodology provided at Rapid7’s 2021 Investor Day on March 10, 2021. 20
Slide 21: Significant Long-Term ARR Per Customer Opportunity
Significant Long-Term ARR Per Customer Opportunity ~$520k AppSec • Our recurring revenue potential for an ARR OPPORTUNITY FOR AN AVERAGE-SIZED CUSTOMER average-sized customer is $520k per year Automation Automation Threat Intelligence • ARR per customer was approximately VM $68.1k in Q3 2023 ~8x D&R
Slide 22: Focused on Long-term Profitability Improvement
Focused on Long-term Profitability Improvement Expenses and Operating Income as % of Revenue (non-GAAP) Gross Margin (non-GAAP) Sales & Marketing (non-GAAP) Research & Development (non-GAAP) General & Administrative (non-GAAP) Operating Income (non-GAAP) 22
Slide 23: Powerful Land and Expand Model
Powerful Land and Expand Model Compelling Track Record of Customer Acquisition, Retention and Expansion Land +6% ARR YoY Customer Growth 1 Growth Expand +14% YoY ARR Growth 1 +7% YoY ARR per Customer Growth 1 1 As of Q3 2023 23
Slide 24: Guidance: Q4 2023 and Full-Year 2023
Guidance: Q4 2023 and Full-Year 2023 Rapid7 anticipates Annualized Recurring Revenue, Revenue, Non-GAAP Income from Operations, Non-GAAP Net Income per Share and Free Cash Flow to be in the following ranges: Q4 2023 Full Year 2023 Annualized Recurring Revenue $800 to $805m Annualized Recurring Reven
Slide 25: Supplemental
RAPIDYD Supplemental
Slide 26: GAAP to Non-GAAP Reconciliations: Q3 2023
GAAP to Non-GAAP Reconciliations: Q3 2023 (Unaudited, in thousands, except share and per share data) 26
Slide 27: GAAP to Non-GAAP Reconciliations: Q3 2022
GAAP to Non-GAAP Reconciliations: Q3 2022 (Unaudited, in thousands, except share and per share data) 27
Slide 28: End Notes
End Notes Annualized Recurring Revenue (ARR) • Annualized Recurring Revenue (ARR) is defined as the annual value of all recurring revenue related to contracts in place at the end of the period. ARR should be viewed independently of revenue and deferred revenue as ARR is an operating metric and is not