Slide 1: Company Overview
August 6, 2024 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 Attractive Investing in Revenue Growth Quality of Customer Profitable Revenue Economics Growth ARR growth of Recurring revenue 9% 96% 7% ~500 bp YoY 1 of total revenue 1 YoY growth in ARR per Non-GAAP Operating customer 1 Margin Expansion Projected in 2024 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
Delivering on Our Data Platform & Analytics Engine Mission Diverse telemetry comes together in Rapid7’s Data Mesh where it is processed through our patented analytics engine and AI to consolidate your landscape into the most pertinent picture of your unique attack surface. We give organizations comm
Slide 6: Command Your Attack Surface
Rapid7 Insight Platform Command Your Attack Surface Global Managed Services Exposure Management Detection & Response VULNERABILITY DAST MXDR NEXT-GEN SIEM CNAPP VALIDATION DFIR THREAT INTEL Attack Surface Management ENDPOINT TO CLOUD VISIBILITY AND MONITORING Rapid7 AI Engine CONNECT CORRELATE CONTE
Slide 7: Compelling Customer Value Proposition
Compelling Customer Value Proposition Anticipate, Pinpoint, and Act with Confidence Anticipate and prevent Gain control over Detect and take Deliver tangible ROI breaches with tailored your attack surface action confidently and outcomes threat-aware risk by pinpointing the on threats with that make it
Slide 8: 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 in ● IR and Rapid7 SOC MDR, and more ● Commercial threat feeds ● Strategic government and indus
Slide 9: Massive Market Opportunity
Massive Market Opportunity $50bn 1 $40bn $30bn ~$47 $20bn bn $10bn 1 Source: Gartner Forecast: Information Security and Risk Management, Worldwide, 2022-2028, 1Q24 Update; Gartner Forecast Analysis: Cloud Security Posture Management, Worldwide; Gartner Forecast: IT Operations Management Software, Wo
Slide 10: Robust Partner Ecosystem
Robust Partner Ecosystem RESELLERS DISTRIBUTORS MARKETPLACES MSSPs ALLIANCES SYSTEM INTEGRATORS 10
Slide 11: Extensive Partner Integration Ecosystem
Extensive Partner Integration Ecosystem 500+ Platform Integrations 11
Slide 12: Industry Analyst Recognition
Industry Analyst Recognition A Leader A Strong Performer A Challenger A Strong Performer Major Player Major Player IDC MarketScape: Worldwide The Forrester Wave™: 2024 Magic QuadrantTM for IDC MarketScape: Worldwide IDC MarketScape: Worldwide Risk-Based Vulnerability The Forrester Wave™: MDR, Vulner
Slide 13: Rapid7 for Social Good Beyond ESG
Rapid7 for Social Good Diversity, Equity, & Inclusion Leverage diverse hiring practices and data-driven focus to advance a Beyond ESG diverse workforce, inclusive culture, and equitable pay. Recognized in Bloomberg Gender Equality Index 2019, 2020, 2021, 2022, and 2023. Rapid7 Core Values Environmen
Slide 14: Financial Overview
RAPIDYD Financial Overview
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 9% year-over-year in Q2 2024 :21% AGR ● ARR CAGR of 21% from Q2 C 2020 to Q2 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 Q2 2024 : 11% CAGR ● ARR per customer CAGR of 11% from Q2 2020 to Q2 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: Powerful Land and Expand Model
Powerful Land and Expand Model Compelling Track Record of Customer Acquisition, Retention and Expansion Land +2% ARR YoY Customer Growth 1 Growth Expand +9% YoY ARR Growth 1 +7% YoY ARR per Customer Growth 1 1 As of Q2 2024 19
Slide 20: Guidance: Q3 2024 and Full-Year 2024
Guidance: Q3 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: Q3 2024 Full Year 2024 Annualized Recurring Revenue $850 to $860m Annualized Recurring Reven
Slide 21: Supplemental
RAPIDYD Supplemental
Slide 22: GAAP to Non-GAAP Reconciliations: Q2 2024
GAAP to Non-GAAP Reconciliations: Q2 2024 (Unaudited, in thousands, except share and per share data) 22
Slide 23: GAAP to Non-GAAP Reconciliations: Q2 2023
GAAP to Non-GAAP Reconciliations: Q2 2023 (Unaudited, in thousands, except share and per share data) 23
Slide 24: GAAP to Non-GAAP Guidance Reconciliation: Q3 & FY 2024
GAAP to Non-GAAP Guidance Reconciliation: Q3 & FY 2024 (All amounts in millions, except per share data) 24
Slide 25: GAAP to Non-GAAP Guidance Reconciliation: FY 2024
GAAP to Non-GAAP Guidance Reconciliation: FY 2024 (All amounts in millions,) 25
Slide 26: 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