Rapid7, Inc. · NASDAQ:RPD
Rapid7 — Q3 2024 Earnings Presentation
26 slides from Rapid7's earnings presentation, Nov 6, 2024
Slide 1: Company Overview
Company Overview November 6, 2024 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 Overview
Rapid7 Overview FINANCIAL SCALE GLOBAL SCOPE MASSIVE Opportunity to $54bn+ 11k+ Consolidate SecOps Total Addressable Market Global Customers SubStANTIAL RECURRING 300T+ 28M REVENUE BASE $800m+ ARR Events Collected & Analyzed by R7 Threat Engine Automation Workflows RAMPING CASH FLOW $150m 500+ Platfo
Slide 4: Fragmented Attack Surface
IOT The realities of securing a Fragmented Attack Surface CLOUD SAAS NETWORK BYOD Collecting more data, while getting less from it. SERVERS More than 80% of organizations1 are not able to see the majority Security of their attack surface. Focus VMs CONTAINERS Manually integrating without confidence.
Slide 5: Compelling Customer Value Proposition
Compelling Customer Value Proposition Anticipate, Pinpoint, and Act with Confidence Anticipate and prevent Gain control over your Detect and take Deliver tangible ROI breaches with tailored attack surface by action confidently on and outcomes threat-aware risk pinpointing the threats with experts tha
Slide 6: Command Your Attack Surface
Command Your Attack Surface Global Managed Services Exposure Management Detection & Response Detection and Response VULNERABILITY DAST MXDR NEXT-GEN SIEM XDR NEXT-GEN SIEM CDR THREAT INTEL DFIR THREATDFIR INTEL CNAPP VALIDATION Exposure Attack SurfaceCommand Management VM CNAPP ENDPOINT TOGRC CLOUD
Slide 7: Security Operations Platform Consolidation
CSPM Cloud CVA CWPP Security Operations CNAPP VM Platform DSPM GRC Consolidation RISK MANAGEMENT AISPM EASM Exposure Rapid7 offers a broader and MANAGEMENT more comprehensive SecOps Consolidation platform than traditional ASM SecOps competitors ASM consolidation CDR CAASM Detection & response NDR DA
Slide 8: Large Market Opportunity for Security Operations
Large Market Opportunity for Security Operations $ in billions 16% TOTAL $85 Managed Security Services CAGR $54 $25 13% $18 Detection & Response Detection and $21 17% $34 Response Exposure $11 Cloud Security 20% Management $5 $18 2024 15% Risk Management $8 2027 Source: Gartner, “Forecast: Informati
Slide 9: Rapid7 Labs: Global Threat Intelligence Community
Rapid7 Labs: Global Threat Intelligence Community Ingestion Sources Intelligence built into our products & services 01 ● Proprietary research Active Risk for vulnerability prioritization, custom detection ● IR and Rapid7 SOC in MDR, and more ● Commercial threat feeds ● Strategic government and indus
Slide 10: Robust Partner Ecosystem
Robust Partner Ecosystem RESELLERS DISTRIBUTORS MARKETPLACE MSSPs S SYSTEM ALLIANCES INTEGRATORS 10
Slide 11: Extensive Partner Integration Ecosystem
Extensive Partner Integration Ecosystem 500+ Platform Integrations 11
Slide 12: Technology Leadership: Industry Analyst Recognition
Technology Leadership: Industry Analyst Recognition A Challenger Recognition Recognition Recognition Recognition Recognition 2024 Magic QuadrantTM for 2024 Market Guide for 2023 Market Guide for 2024 Market Guide for 2023 Market Guide for 2023 Market Guide for Security Security Information and Event
Slide 13: Rapid7 for Social Good
Rapid7 for Social Good Beyond ESG Diversity, Equity, & Inclusion Leverage diverse hiring practices and data-driven focus to Rapid7 Core Values advance a diverse workforce, inclusive culture, and equitable pay. Recognized in Bloomberg Gender Equality Index 2019, 2020, Bring You 2021, 2022, and 2023.
Slide 14: Financial Overview
FINANCIAL OVERVIEW RAPID + + + ' + + + + + + + + + + + + + + + + + + + + + + +
Slide 15: Sustained Revenue Growth
Sustained Revenue Growth ● 2023 revenue growth of 14% year-over-year ● Revenue CAGR (2020 - 2023): 24% ● Non-GAAP operating margin improvement of over 800bps in 2023 15
Slide 16: Annualized Recurring Revenue
Annualized Recurring Revenue ● ARR grew by 6% year-over-year in Q3 2024 R: 20% CAG ● ARR CAGR of 20% from Q3 2020 to Q3 2024 16
Slide 17: Upsells & Cross-Sells Drive ARR per Customer Growth
Upsells & Cross-Sells Drive ARR per Customer Growth ● ARR per customer was approximately $71k in % Q3 2024 R: 11 CAG ● ARR per customer CAGR of 11% from Q3 2020 to Q3 2024 ARR per customer is based on the new customer count methodology provided at Rapid7’s 2021 Investor Day on March 10, 2021. 17
Slide 18: 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 Operating Income (non-GAAP) (non-GAAP) 18
Slide 19: Guidance: Q4 2024 and Full-Year 2024
Guidance: Q4 2024 and Full-Year 2024 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 2024 Full Year 2024 Annualized Recurring Revenue $835 to $845m Annualized Recurring Reven
Slide 20: Supplemental
SUPPLEMENTAL RAPID + + + ' + + + + + + + + + + + + + + + + + + + + + + +
Slide 21: GAAP to Non-GAAP Reconciliations: Q3 2024
GAAP to Non-GAAP Reconciliations: Q3 2024 (Unaudited, in thousands, except share and per share data) 21
Slide 22: GAAP to Non-GAAP Reconciliations: Q3 2023
GAAP to Non-GAAP Reconciliations: Q3 2023 (Unaudited, in thousands, except share and per share data) 22
Slide 23: GAAP to Non-GAAP Guidance Reconciliation: FY 2024
GAAP to Non-GAAP Guidance Reconciliation: FY 2024 (All amounts in millions,) 23
Slide 24: GAAP to Non-GAAP Guidance Reconciliation: Q4 & FY 2024
GAAP to Non-GAAP Guidance Reconciliation: Q4 & FY 2024 (Unaudited, in thousands, except share and per share data) 24
Slide 25: 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 26: Thank You
RAPID*) THANK YOU \ ow