Slide 1: Welcome to Investor Day 2021
RAPID*) Welcome to Investor Day 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements. All statements contained in this presentation other than statements of historical facts, including statements regarding future results of operations and financial position of Rapid7, Inc. (“Rapid7”, “we”, “us” or “our”), inc
Slide 3: Securing the Digital Experience
Securing Delivering Increasing Driving the Digital Unified Platform Long-term Experience SecOps in Consumption Scale the Cloud Corey Thomas Lee Weiner Andrew Burton Jeff Kalowski Chairman & Chief Innovation Officer President & Chief Financial Officer Chief Executive Officer Chief Operating Officer 3
Slide 4: How do we secure the digital experience as risk accelerates?
How do we secure the Delivering Increasing Driving digital Unified Platform Long-term experience SecOps in Consumption Scale as risk the Cloud accelerates? 4
Slide 5: Corey Thomas, Chairman & Chief Executive Officer
Corey Thomas Chairman & Chief Executive Officer 5
Slide 6: Shifting Dynamics
Shifting Dynamics Attacker Landscape Pace of Technology Ability to Manage Cybersecurity Risk 6
Slide 7: What Trends Are Accelerating the Shifting Dynamic in Technology?
What Trends Are Accelerating the Shifting Dynamic in Technology? DIGITAL & REMOTE CLOUD ADOPTION SHIFT TO SAAS EXPERIENCE 74% of CFOs report that “By the end of 2021, By 2020, all new some employees will 80% of enterprises will entrants and 80% of remain remote put a mechanism in historical vendors
Slide 8: Security Achievement Gap
INCREASING RISK FROM RAPID INNOVATION Security Achievement Gap CAPACITY TO MANAGE RISK 8
Slide 9: What do we mean by achievability?
What do we mean by achievability? 9
Slide 10: Achievability = Capability + Accessibility
Achievability = Capability + Accessibility 10
Slide 11: Industry Standard Capabilities
Industry Standard Capabilities Enterprise Visibility Dynamic Risk & Threat Attacker Analytics Visualization Prioritization Context
Slide 12: Most companies stop here.
Most companies stop here. 2 RAPID
Slide 13: Security Acceleration Capabilities
Security Acceleration Capabilities Silo-breaking Data Intelligent Policy-centric Programatized Integrated Threat Integration & Automation Workflow Detection with Intelligence Contextualization Capabilities Machine Learning 13
Slide 14: Accessibility
Accessibility Broadly Successfully Used Can be Managed Works Get Value with Affordable with Limited with Few Consistently Minimal Change Training Resources 14
Slide 15: Capability without accessibility will not close the gap
If we increase capability without accessibility— we will not close the Security Achievement Gap. 15
Slide 16: Access to Capabilities
INCREASING RISK FROM RAPID INNOVATION Access to Capabilities Capability to Manage Risk 16
Slide 17: Increase Access, Accelerate Capabilities
INCREASING RISK FROM RAPID INNOVATION Increase Access Accelerate Capabilities 17
Slide 18: Security Achievability
Security Achievability = Industry Standard Capabilities Security Acceleration Capabilities Access to Capabilities 18
Slide 19: Advanced security meets teams where they are.
Advanced security meets teams where they are. 19
Slide 20: Any team. Any data. Best-in-Class Security Operations
Best-in-Class Any team. Security Any data. Operations 20
Slide 21: Accessibility to Insight via Tailored SecOps Pillars
ACCESSIBILITY TO INSIGHT VIA TAILORED SECOPS PILLARS Threat Detection Vulnerability Risk Cloud Security & Response Management SHARED INSIGHT ENGINE AUTOMATION Orchestration Workflow Action Attacker Vulnerability Policy Identity ANALYTICS User Behavior Behavior Prioritization Compliance Governance Rem
Slide 22: The Rapid7 Insight Platform
The Rapid7 Insight Platform SECURITY TRANSFORMATION SOLUTIONS 1 Threat Cloud Vulnerability Detection & Security Risk Response Management Intelligent Automation SHARED INSIGHT ENGINE Collection, Data, Analytics Services 1 Security transformation solutions consist of our incident detection & response,
Slide 23: Massive market opportunity today
Massive market opportunity today TOP DOWN (2021) BOTTOM UP (2021) $30bn >$30 bn $25bn UNDER-PENETRATED OPPORTUNITY $20bn SECURITY ~$20 bn TRANSFORMATION ~$420k 2 $15bn ARR Opportunity for SECURITY an average-sized $10bn TRANSFORMATION customer $5bn VM VM IDC 1 Global Addressable Customer Opportunity
Slide 24: Secure the Digital Experience
Secure the Digital Experience Best-in-class World-class Delivered to more of security capabilities accessibility the growing market 24
Slide 25: How are we building a unified SecOps experience?
How are we Securing the building a Increasing Driving Digital unified Platform Long-term Experience Consumption Scale SecOps experience? 25
Slide 26: Lee Weiner, Chief Innovation Officer
Lee Weiner Chief Innovation Officer 26
Slide 27: Customers need an integrated platform
Customers need an integrated platform “ Customers trust expert-built solutions and recommendations from your experienced researchers and global consultants.” - VP Cybersecurity, Global Credit Rating Company “40, 50, 200 security software vendors in my corporation. Give me three that can manage this
Slide 28: Why do platforms fail?
Why do platforms fail? Don’t Sustain Best-in-Class Lack Integrated Complicated and Across Suite Experiences Slow to Deploy 28
Slide 29: How we're set up for success
How we’re set up for success: Best in Class Frictionless Unified Cloud Products Access to Value Platform 29
Slide 30: Threat Detection & Response
Threat Cloud Vulnerability Detection & Security Risk Response Management Intelligent Automation SHARED INSIGHT ENGINE Collection, Data, Analytics Services 30
Slide 31: Threat Detection & Response
BEST IN CLASS Threat Detection & Response 31
Slide 32: Broad Visibility Across Cloud and On-premise
Broad Visibility Across Cloud and On-premise. Data Integrations Collection Cloud Endpoint Network 32
Slide 33: Detection-oriented Analytics. Machine Learning
Detection-oriented Analytics. Machine Learning Capabilities. Analytics UBA ABA ML 33
Slide 34: Automated Containment & Response
Automated Containment & Response Custom Escalation Automation Workflows Validated SOC Analytics Threats Expertise 34
Slide 35: Cloud Security
BEST IN CLASS Cloud Security 35
Slide 36: Multi-cloud Risk Visibility & Analytics
Multi-cloud Risk Visibility & Analytics Analytics CIEM CWPP CSPM AWS Azure GCP OCI Data Kubernetes Alibaba 36
Slide 37: Extensible & Customizable to Connect Security and DevOps Teams
Extensibile & Customizable to Connect Security and DevOps Teams. Devops Processes Integrate Shift Left & Extend Custom Plugins REST API 37
Slide 38: Real-time Automated Remediation
Real-time Automated Remediation Automation Native & Integrated Policy Analytics Remediation Compliance 38
Slide 39: Vulnerability Risk Management
BEST IN CLASS Vulnerability Risk Management 39
Slide 40: Broad Visibility Across Traditional and Modern Environments
Broad Visibility Across Traditional and Modern Environments Data Searchable Integrations Collection Cloud Endpoint Network 40
Slide 41: Prioritize Risk with Advanced Analytics
Prioritize Risk with Advanced Analytics Attacker Vulnerability Behavior Prioritization Analytics Policy Remediation Compliance 41
Slide 42: Automation-assisted Remediation for Impact and Influence
Automation-assisted Remediation for Impact and Influence Custom Automation Processes Workflows Analytics Remediation 42
Slide 43: Accessibility to Insight via Tailored SecOps Pillars
ACCESSIBILITY TO INSIGHT VIA TAILORED SECOPS PILLARS Threat Detection Vulnerability Risk Cloud Security & Response Management SHARED INSIGHT ENGINE AUTOMATION Orchestration Workflow Action Attacker Vulnerability Policy Identity ANALYTICS User Behavior Behavior Prioritization Compliance Governance Rem
Slide 44: Centralized Data
EASIER TO DO MORE TOGETHER Centralized Data Shared data breaks silos driving Fast time to value when unparalleled contextualization extending across the Platform Unstructured & Long Term Data Searchable High Volume Integrations Structured Archival Collection Endpoint Cloud Logs Network Apps API Broa
Slide 45: Advanced Analytics
EASIER TO DO MORE TOGETHER Advanced Analytics Shared analytics enhance incident context driving better decision outcomes Attacker Vulnerability Policy Identity Analytics User Behavior Remediation Behavior Prioritization Compliance Governance Enriched threat environment context Programmatic machine s
Slide 46: Intelligent Automation
EASIER TO DO MORE TOGETHER Intelligent Automation Intelligent automation that Extends security teams’ learns customer environments capability & amplifies expertise Automation Orchestration Workflow Action Advanced policy workflows improve time to resolution 46
Slide 47: The Unified Platform Experience
SEE IT IN ACTION The Unified Platform Experience 47
Slide 48: vzW ; wv) LTE oo)
vzW ; wv) LTE oo) 10:10 Monday, November 6 av SLACK 4 Critical Alert A high-value system was compromised. @Rapid7 InsightConnect added you and 6 others to the war room.
Slide 49: Rapid7 Insight Investigation
Rapid7 Insight Investigation User Asset Investigation status Alice Smith Hostname BOS-D-1094 Status aia IP address 10.18.1.124 Investigators @jpagano @jdoe L lo Feb 18, 2021 08:14 EST ast log in ® Last Heartbeat Feb 18, 2021 08:15 EST Initial alert time 08:17 EST (00:14 Elapsed) i 3 ‘Accoiint Risk i
Slide 50: Alice Smith Hostname BOS-D-1094
Alice Smith Hostname BOS-D-1094 ENG MGR IP address 10.18.1.124 Last log in Feb 18; 20208:14/ESTi Last Heartbeat Feb 18, 2021 08:15 EST i 3 Account Risk oe? Vulnerability Risk 5 PowerShell Script Launched from Microsoft Word Feb 18, 2021; 8:14am EST e User: Alice Smith, @asmith, ENG MGR Status Invest
Slide 51: Rapid7 Insight Investigation
Rapid7 Insight Investigation User Asset Investigation status Alice Smith Hostname BOS-D-1094 Status aia IP address 10.18.1.124 Investigators @jpagano @jdoe L lo Feb 18, 2021 08:14 EST ast log in ® Last Heartbeat Feb 18, 2021 08:15 EST Initial alert time 08:17 EST (00:14 Elapsed) i 3 ‘Accoiint Risk i
Slide 52: DivvyCloud, InsightVM, InsightIDR
DivvyCloud User Risk InsightVM Asset Risk InsightIDR Threat Detection 52
Slide 53: Rapid7 Insight Investigation
Rapid? Insig Investigation User Asset Investigation status Alice Smith Hostname BOS-D-1094 Status NEMS IP address 10,18.1.124 Investigators @jpagano @jdoe \ Feb 18, 2021 08:14 EST fastlog In ° Last Heartbeat Feb 18, 2021 08:15 EST Initial alert time 08:17 EST (00:14 Elapsed) Account Risk 3 Vulnerabi
Slide 54: tv) Threat Intelligence by RecordedFuture InsightConnect Automation
tv) Threat Intelligence by RecordedFuture 7 InsightConnect Automation Searching firewall logs for outbound connections... P. InsightIDR Query Analyzing AWS Environment Access... DivwyCloud
Slide 55: Rapid7 Insight Investigation
Rapid7 Insight Investigation User Asset Investigation status Alice Smith Hostname BOS-D-1094 Status ENGMGR IP address 10.18.1.124 Investigators @jpagano @jdoe Lettog In Pe Es ES eT Last Heartbeat Feb 18, 2021 08:15 EST Initial alert time 08:17 EST (00:14 Elapsed) Account Risk 3 ee@ Vulnerability Ris
Slide 56: Rapid7 Insight Investigation
Rapid7 Insight Investigation User Asset Investigation status Alice Smith Hostname BOS-D-1094 Status ~~ IP address 10.18.1.124 Investigators @jpagano @jdoe Last log in Feb 18, 2021 08:14 EST Last Heartbeat Feb 18, 2021 08:15 EST Initial alert time JAGSEMMINERS 2 Vulnerability Risk 5¢ War room 08:17 E
Slide 57: Asset Quarantined
® Asset “BOS-D-1094” Quarantined Suggested Next Actions 6 Assets Directly Accessible @ quarantine @ Assets Recommended Action: Quarantine 6 assets immediately. 24 Cloud Accounts Accessible Pe inevoke oa Accounts Recommended Action: Revoke Access to all accounts immediately. 19 Network Endpoints Show
Slide 58: Rapid7 Insight Investigation
Rapid7 Insight Investigation User Asset Alice Smith Hostname BOS-D-1094 Qe ih sy ENG MGR IP address 10.18.1.124 Last log in Feb 18, 2021 08:14 EST Last Heartbeat Feb 18, 2021 08:15 EST i Zeee Account Risk Vulnerability Risk 5 ¢ Investigation status Status Investigators Initial alert time War room @j
Slide 59: Delivering Unified SecOps in the Cloud
Delivering Unified SecOps in the Cloud Best in Class Frictionless Unified Cloud Products Access to Value Platform 59
Slide 60: How do we deliver what customers need to meet their challenges?
How do we Delivering deliver what Securing the Driving Digital Unified customers Long-term Experience SecOps in need to Scale the Cloud meet their challenges? 60
Slide 61: Andrew Burton, President & Chief Operating Officer
Andrew Burton President & Chief Operating Officer 61
Slide 62: Increasing Platform Consumption
Increasing Platform Consumption Strong Landing Frictionless Durable Growth Meets Customers Expansion Strategic Paths to Reach Where They Are Scales with Customers More of the Market 62
Slide 63: Proven Ability to Land Across Best-In-Class Solutions
Proven Ability to Land Across Best-In-Class Solutions Threat Cloud Vulnerability Detection & Security Risk Response Management Intelligent Automation SHARED INSIGHT ENGINE Collection, Data, Analytics Services 63
Slide 64: Threat Detection & Response
Detection Based SIEM PROVEN LANDING Threat Detection & Response Products Included: Rapid7 InsightIDR Threat Detection & Solution Category: Detection-Focused SIEM / XDR Response Combined Capabilities: UBA + SIEM + NTA + EDR + Deception Tech Investigation Console + SOC Automation “IDR represents a bit
Slide 65: Vulnerability Risk Management
PROVEN LANDING Vulnerability Risk Management Products Included: Rapid7 InsightVM & InsightAppSec Vulnerability Risk Solution Category: Vulnerability Risk Management Management Combined Capabilities: VM + DAST + RASP + Automation “InsightVM really reduces the amount of work that my team has to do. No
Slide 66: Cloud Security
PROVEN LANDING Cloud Security Products Included: DivvyCloud by Rapid7 Cloud Security Solution Category: Cloud Security Combined Capabilities: CSPM + CEIM + CWPP + Automation “DivvyCloud gives us the ability to InfoSec automate governance, offer Cutting Edge flexibility, allow better insights Automati
Slide 67: Frictionless Expansion Scales with Customers
OLD WAY Artificial barriers between capabilities hinder customers from accessing value. OUR WAY Frictionless Expansion Best-in-class accessibility enables Scales with Customers customers to start anywhere and easily realize more value over time. 67
Slide 68: Ease of Expansion within a Solution: Today
Ease of Expansion within a Solution: Today Threat Builds on our foundation of disruptive, transparent, Detection & asset-based pricing. Response Meet customers where they are and support them throughout Best their SecOps maturity journey: Better LAND Good Better Best Good EXPAND Better Best Automati
Slide 69: Ease of Expansion within a Solution: Future
Ease of Expansion within a Solution: Future Vulnerability Builds on our foundation of disruptive, transparent, Risk asset-based pricing. Management Meet customers where they are and support them throughout Best their SecOps maturity journey: Better LAND Good Better Best Good EXPAND Better Best Autom
Slide 70: Threat Detection to Vulnerability Risk Management
LOWERING BARRIERS Threat Detection to Vulnerability Risk Management Threat Vulnerability LAND Threat Detection & Response Detection & Risk Response Management EXPAND Vulnerability Risk Management EXTEND Orchestration & Automation 1 2 Recent Customer Validation Customer: Net New Healthcare customer S
Slide 71: Vulnerability Risk Management to Cloud Security
LOWERING BARRIERS Vulnerability Risk Management to Cloud Security Vulnerability Cloud Security LAND Vulnerability Risk Management Risk Management EXPAND Cloud Security 1 EXTEND Orchestration & Automation 2 Recent Customer Validation Customer: Existing Technology customer Solutions: InsightVM, DivvyC
Slide 72: As Customers Increase Platform Consumption...
As Customers Increase Platform Consumption... 19 of Top 20 Deals1 in 2020 included Security Transformation Solutions 13 of Top 20 Deals1 in 2020 included Multiple Platform Products SECURITY TRANSFORMATION SOLUTIONS VM D&R AppSec Automation Cloud CUSTOMER 1 CUSTOMER 2 Customers >$100k ARR2 CUSTOMER 3
Slide 73: ...It Drives Durable Growth in ARR per Customer
...It Drives Durable Growth in ARR per Customer ARR per customer 1 $65,000+ 18% CAGR $49,700 PROJECTED GROWTH $42,500 $35,800 2018 2019 2020 2023 1 ARR per customer at the end of fiscal year of 2018, 2019 and 2020 is based on the new customer count methodology provided in this presentation. The futur
Slide 74: Fueling Durable Growth
Scaling the Enterprise and Serving Mid-Market Broadening Our Partner-First Ecosystem Fueling Durable Expanding Our Growth Global Opportunity 74
Slide 75: Scaling Enterprise and Serving Mid-market
DURABLE GROWTH Scaling Enterprise and Serving Mid-market ARR COMPOSITION BY CUSTOMER MARKET SEGMENT $60,000+ $44,500 Large Enterprise $37,500 Strong Enterprise Mix Mid-Sized Enterprise SMB Underserved Small Mid-market Mid-Market Market Opportunity Other 75
Slide 76: Broadening Our Partner-First Ecosystem
DURABLE GROWTH Broadening Our Partner-First Ecosystem Opening Multiple Channels to Market 200+ Partners globally and adding new routes to market to drive incremental new business opportunity. Increasing Insight Accessibility Enabling Digital Transformation Broadening Rapid7’s offerings & Partnership
Slide 77: Expanding Global Opportunity
DURABLE GROWTH Expanding Global Opportunity Cloud data sovereignty across Strategic focus multiple geographic regions on AUS and DACH Regions Regulatory requirements present IDR opportunity in Middle East and LATAM 77
Slide 78: Increasing Platform Consumption
Increasing Platform Consumption Strong Landing Frictionless Durable Growth Meets Customers Expansion Strategic Paths to Reach Where They Are Scales with Customers More of the Market 78
Slide 79: How do we drive long-term financial scale and cash flow?
How do Delivering we drive Securing the Increasing Digital Unified Platform long-term Experience SecOps in Consumption financial the Cloud scale and cash flow? 79
Slide 80: Jeff Kalowski, Chief Financial Officer
Jeff Kalowski Chief Financial Officer 80
Slide 81: Drive Long-Term Scale
Drive Long-Term Scale Driving Durable Growth Scaling Profitability Path to $1bn+ 81
Slide 82: Executing on Our 2020 Vision
Executing on Our 2020 Vision 2017 2020 INVESTOR DAY TARGETS FOR 2020 EXECUTION ~$350m ARR ESTABLISHED $433m ARR MULTI-PRODUCT 30% CAGR LEADERSHIP 38% CAGR ~$350m Total Revenue TRANSITIONED TO $411m Total Revenue SAAS RECURRING 20% CAGR REVENUE MODEL 27% CAGR REINVESTED TO 4-7% Non-GAAP 0.5% Non-GAAP
Slide 83: Generating Return on our Investments
Generating Return on our Investments $83m Re-investment in the business drove >$80m ARR in ARR upside to 2020 83
Slide 84: Multiple Paths to Durable Growth
Platform Opportunity Land to Expand Strategic Customer Growth Multiple Paths to Durable Growth Underpenetrated International Opportunity 84
Slide 85: Large market opportunity drives new business...
GROWTH PATH ONE Large market opportunity drives new business... New ARR Mix 1 Growing urgency to secure Cloud & Digital 45% Transformation 30% 55% Strong demand for 70% Security Transformation Sustained growth in Vulnerability Management 2017 2020 VM & OTHER SECURITY TRANSFORMATION 1 85 See End Note
Slide 86: ...Scaling our Platform opportunity
GROWTH PATH ONE ...Scaling our Platform opportunity ARR Mix Multiple market VM leading solutions 53% VM Growing Security 66% Transformation mix 28% CAGR Multi-product SECURITY IDR sales opportunity SECURITY TRANSFORMATION Cloud TRANSFORMATION AppSec 40% 19% Automation OTHER 76% CAGR 15% 7% 2017 2020
Slide 87: Land to Expand Engine...
GROWTH PATH TWO Land to Expand Engine... ~$420,0002 ARR OPPORTUNITY FOR AN AVERAGE-SIZED CUSTOMER Expanded wallet share opportunity AppSec ● Market-leading IDR Automation ● Enterprise-class Cloud Security ● Platform services (i.e. Automation) Cloud Recent Customer Validation ~$200,000 1 ~8.5x Custom
Slide 88: ...Creates huge cross sell opportunity
GROWTH PATH TWO ...Creates huge cross sell opportunity MULTIPLE PLATFORM Underpenetrated 22% PRODUCTS Install Base Lowering barriers to expansion Customers 1 2020 Increasing ONE OR FEWER monetization paths PLATFORM PRODUCTS 78% 1 88 Based on new customer count methodology provided in this presentati
Slide 89: Focus on Strategic Customers
GROWTH PATH THREE Focus on Strategic Customers 1 Platform Customer Growing as Percent of Total Customers Total customer growth +25% 2 understates strategic yoy customer growth +9% 2 yoy 1 Based on new customer count methodology provided in this presentation. 89 2 Growth rate reflects year-over-year g
Slide 90: Better Aligning Our Customer Metric to ARR
Better Aligning Our Customer Metric to ARR Updates to Customer Methodology: Eliminating 90 day Lag in Removing Services-only Removing Low-Value Churned Customers Customers InsightOps Customers Q1 ‘20 Q2 ‘20 Q3 ‘20 Q4 ‘20 NEW METHOD Customer Count 8,075 8,223 8,442 8,718 Reduction in NEW METHOD Custo
Slide 91: Underpenetrated International Market Opportunity
GROWTH PATH FOUR Underpenetrated International Market Opportunity INTERNATIONAL 17% INTERNATIONAL GROWTH OPPORTUNITY Geographic Revenue Mix 2020 NORTH 83% AMERICA 91
Slide 92: Well positioned to capture our growing TAM
DRIVING DURABLE GROWTH Well positioned to capture our growing TAM ARR VM VM >65% SECURITY VM TRANSFORMATION >50% SECURITY 40% TRANSFORMATION SECURITY TRANSFORMATION OTHER 2020A 2023E 2025E 92 Based on data as of the fiscal quarter ended December 31, 2020. The future financial results presented are bas
Slide 93: Tracking Our Progress
Tracking Our Progress Calculated Billings Deferred Revenue Net Retention ARR Customers ARR Per Customer 93
Slide 94: Drive Long-Term Scale
Drive Long-Term Scale Driving Durable Growth Scaling Profitability Path to $1bn+ 94
Slide 95: Scaling Efficiently
Scaling Efficiently Growth & Profitability Framework Non-GAAP ARR Growth Operating Margin Expansion 20-25% 2-3% 25-30% 1-2% -13.1% 30%+ <1% Non-GAAP Operating Margin represents Non-GAAP loss from operations as a percentage of Revenue. Refer to the GAAP to non-GAAP reconciliation in the Appendix for fu
Slide 96: Lowering Barriers for Customer Adoption Increases Sales Efficiency
Lowering Barriers for Customer Adoption Increases Sales Efficiency Non-GAAP S&M Margin Platform Consumption Drives Sales Efficiency More products enables 53% Sales Productivity of Rev 47% of Rev 45% of Rev Higher ASPs Drive 43% of Rev Continue driving Leverage Over Time S&M efficiency 2017 2018 2019 2020
Slide 97: Scaling Innovation
Scaling Innovation Gain innovation leverage due to shared Platform Innovation drives capabilities best-in-class leadership Non-GAAP R&D Expense $84m Continue to invest Focus on common ~20% of Revenue capabilities enables $64m scaling efficiently $57m $44m 20% Efficient building brings of Rev 19% new opp
Slide 98: Strong SaaS economics and margin profile
Strong SaaS economics and margin profile $303m Growing cloud mix has $245m modestly impacted Non-GAAP Gross Margin $179m Expect Non-GAAP $148m Product Gross Margins consistent with SaaS models in the mid-70s Non-GAAP Total Gross Margin and Non-GAAP Products Gross Margin represents Non-GAAP Total Gros
Slide 99: Positioned to scale Free Cash Flow
Positioned to scale Free Cash Flow Major Facility Capex Completed Largely Annual Billings Recurring Revenue Model 99
Slide 100: Drive Long-Term Scale
Drive Long-Term Scale Driving Durable Growth Scaling Profitability Path to $1bn+ 100
Slide 101: Our ARR Path to $1 Billion
Our ARR Path to $1 Billion $1bn+ ~10-15% ARR Per Customer Growth ~5-10% Multiple New Logo market-leading Growth products ~$520m $433m >74,000 Global customer ~$420k wallet $339m opportunity share opportunity $252m Lower barriers to Focus on strategic increased Platform customer Platform growth consu
Slide 102: Path to a $1bn Rule of 40 Company
Path to a $1bn Rule of 40 Company FY ‘25 FY ‘21 1 FY ‘23 LONG-TERM TARGET FY ‘20 GUIDANCE MID-TERM TARGET Rule of 40: ARR Growth + FCF Margin ARR $433m $520m ~$750m >$1bn Revenue $411m $492m ~$700m Non-GAAP 0.5% ~2.5-3% ~6.5-9% Operating Margin Free Cash Flow ($15m) ~$10m ~$70m ~$200m 1 102 Based on
Slide 103: Drive Long-Term Scale
Drive Long-Term Scale Driving Durable Growth Scaling Profitability Path to $1bn+ 103
Slide 104: Secure the Digital Experience
Secure Deliver Increase Drive the Digital Unified Platform Long-term Experience SecOps in Consumption Scale the Cloud Corey Thomas Lee Weiner Andrew Burton Jeff Kalowski Chairman & Chief Innovation Officer President & Chief Financial Officer Chief Executive Officer Chief Operating Officer 104
Slide 105: Appendix
Appendix 105
Slide 106: 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
Slide 107: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 107 (Amounts reflected in thousands.)
Slide 108: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 108 (Amounts reflected in thousands.)
Slide 109: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 109 (Amounts reflected in thousands.)
Slide 110: GAAP to Non-GAAP Guidance Reconciliations
GAAP to Non-GAAP Guidance Reconciliations 110 (Amounts reflected in millions.)