Slide 1: Company Overview
Company Overview February 9, 2022
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 Attractive Investing in Strong Recurring High Quality Customer Profitable Revenue Growth of Revenue Economics Growth Recurring revenue Expansion of ARR growth of 17% growth Non-GAAP 38% YoY 1 92% of total in ARR per Operating Margin 1 revenue customer 1 and Free Cash Flow Projected i
Slide 4: Managing Risk and Enabling Innovation
Managing Risk and Enabling Innovation Data keeps our Accelerated change Security needs to We trust security connected society makes it tougher to keep up with the teams to protect functioning. stay ahead of risks. pace of innovation. our data. Organizations need best-in-class security that is both s
Slide 5: Delivering on Our Mission
Delivering on Our Mission Unite teams and tools with award-winning Best-in-Class cloud products delivering visibility, Technology Make analytics, and automation. best-in-class security Enrich customer experiences with broad Unified Cloud operations Platform environment visibility, seamless integratio
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 SECURITY TRANSFORMATION SOLUTIONS1 Threat Detection & Cloud Vulnerability Risk Response Security Management Threat Intelligence Intelligent Automation SHARED INSIGHT ENGINE Collection, SHARED Data, Analytics Services INSIGHT ENGINE Collection, Data, Anal
Slide 8: 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 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 Custom Automation Processes Workflows Attacker Vulnerability Analytics Behavior Prioritization Data Searchable Integrations C
Slide 12: Massive Market Opportunity
Massive Market Opportunity $40bn TOP DOWN (2022) BOTTOM UP (2022) UNDER-PENETRATED ~$37 bn $30bn OPPORTUNITY ~$29 bn $20bn SECURITY ~$500k 2 TRANSFORMATION ARR Opportunity for SECURITY an average-sized TRANSFORMATION customer $10bn VM VM Global Addressable IDC 1 Customer Opportunity 3 > 74,000 1 Bas
Slide 13: Extensive Partner Ecosystem
Extensive Partner Ecosystem 80+ DATA COLLABORATION DATA WORKFLOW PARTNERS DATA INGESTION PARTNERS Platform PARTNERS Integrations • Two-way data sharing • IT security integration • Enhances analytics • Streamlines correction • Enables detection with Partners • ‘Single pane of glass’ • Enhanced platfo
Slide 14: Rapid7 Global Threat Intelligence Community
Rapid7 Global Threat Intelligence Community Insight Cloud Threat Intelligence Intelligence Sharing Attacker KB Leading External Cyber Threat Affiliate Member, Vulnerability Database Global customer base Intelligence Capabilities Board & Committee Seats & Community Metasploit & Project Heisenberg Proje
Slide 15: Rapid7 Leadership Among Analysts
Rapid7 Leadership Among Analysts Positioned as Positioned as Recognized as Positioned as Positioned as Leader amongst Leader in 2021 Gartner Peer Visionary in 2021 Leader amongst Vulnerability Risk and 2020 Magic Insights Magic Quadrant Midsize Managed Management Quadrant for Customers’ for Applicat
Slide 16: Rapid7 for Social Good Beyond ESG
Rapid7 for Social Good Beyond ESG Diversity, Equity, & Inclusion RAPID7 CORE VALUES Leverage diverse hiring practices and data-driven focus to advance a diverse workforce, inclusive culture, and equitable pay. Recognized in Bloomberg Gender Equality Index 2018, 2019, 2020, 2021, 2022. Environment &
Slide 17: Financial Overview
Financial Overview 17
Slide 18: Sustained Revenue Growth
Sustained Revenue Growth • Q4 2021 revenue growth of 34% year-over-year • Revenue CAGR (2017-2021): 28% • Non-GAAP operating margin improvement over time 18 2017 numbers are under ASC 605 and 2018 and beyond numbers are under ASC 606
Slide 19: Annualized Recurring Revenue
Annualized Recurring Revenue % • ARR grew by 38% year- : 33 GR CA over-year in Q4 2021 • ARR CAGR of 33% from Q4 2018 to Q4 2021 19
Slide 20: Upsells & Cross-Sells Drive ARR Per Customer Growth
Upsells & Cross-Sells Drive ARR Per Customer Growth • ARR per customer was R: 18% CAG approximately $58.3k in Q4 2021 • ARR per customer CAGR of 18% from Q4 2018 to Q4 2021 20 ARR per customer is based on the new customer count methodology provided at Rapid7’s 2021 Investor Day on March 10, 2021.
Slide 21: Significant Long-Term ARR Per Customer Opportunity
Significant Long-Term ARR Per Customer Opportunity ~$500k ARR OPPORTUNITY FOR AN AVERAGE-SIZED CUSTOMER AppSec • Our recurring revenue potential for an Automation Automation average-sized customer is $500k per year Threat Intelligence VM • ARR per customer was approximately $58.3k in Q4 2021 ~8.5x D
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 Sales & Marketing Research & General & Operating Income (non-GAAP) (non-GAAP) Development Administrative (non-GAAP) (non-GAAP) (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 ARR +18% Growth YoY Customer Growth 1 +38% Expand YoY ARR Growth 1 +17% YoY ARR per Customer Growth 1 1 23 As of Q4 2021
Slide 24: Guidance | Q1 2022 and Full-Year 2022
Guidance | Q1 2022 and Full-Year 2022 Rapid7 anticipates Annualized Recurring Revenue, Revenue, Non-GAAP (loss) income from operations, non-GAAP net (loss) income per share and free cash flow to be in the following ranges: Q1 2022 Full Year 2022 v Annualized Recurring Revenue $740 to $750m Annualized
Slide 25: Supplemental
Supplemental 23 RAPIDID
Slide 26: GAAP to Non-GAAP Reconciliations: Q4 2021
GAAP to Non-GAAP Reconciliations: Q4 2021 (Unaudited, in thousands, except share and per share data)
Slide 27: GAAP to Non-GAAP Reconciliations: Q4 2020
GAAP to Non-GAAP Reconciliations: Q4 2020 (Unaudited, in thousands, except share and per share data)
Slide 28: GAAP to Non-GAAP Guidance Reconciliations: Q1 & Full-Year 2022
GAAP to Non-GAAP Guidance Reconciliations: Q1 & Full-Year 2022 The reconciliation does not reflect any items that are unknown at this time, such litigation-related expenses, which we are not able to predict without unreasonable effort due to their inherent uncertainty. As a result, the estimates show
Slide 29: GAAP to Non-GAAP Guidance Reconciliations: Full-Year 2022
GAAP to Non-GAAP Guidance Reconciliations: Full-Year 2022 (All amounts in millions, except per share data)
Slide 30: 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