Slide 1: Data Security Analytics Q2 2015 Financial Results
Exhibit 99.3 DATA SECURITY Q2 ANALYTICS AUGUST 2015 & Financial 18, 2015Results RAPID7 PROPRIETARY
Slide 2: Disclaimers
Disclaimers position “estimate,” projections needs. under management in and Although reflected expectations, required This assumptions any necessarily Rapid7 any adversely obligation presentation the forward-looking These Proprietary of by in Securities weRapid7, subject about “expect,” the law, and
Slide 3: Q2 2015 Financial Highlights
21Q2Increasing 543Revenue expense-to-revenue See Rapid7 High-Visibility Strong Solid 2015 EndRenewal Proprietary Notes Revenue continued Financial andOperating 83% forRate Recurring Growth of additional Highlights Deferred 3measures Q2 ofEfficiencies 115% Revenue of&Revenue information 44% Ratable d
Slide 4: Selected Financial Summary
$Q2%2015 (amounts Products Revenue: Total Loss loss Pro Operating 1The acquisition Rapid7 forma per from Revenue Company Proprietary share Summary $14.6 in cash Net operations related millions, (GAAP) loss $25.8 $11.0 flow defines expenses. per Selected 4$(1.2) $17.9 $3.6 (GAAP) except share $(2.59)
Slide 5: Strong Revenue Growth
Strong +44% +41% 35% $77m 2011 $31m $46m $17m $60m $18m Rapid7 CAGR 2012 $24m YoY Revenue Proprietary 2013 $26mGrowth 2014 5 Q1 2014 Q1 2015 Q2 2014 Q2 2015
Slide 6: High Recurring Revenue Mix: Maintenance & Products
High 81% Maintenance & Products Software 20% Managed Cloud-Based 61% Appliance See Rapid7 Support End of Content RECURRING Proportion Proprietary revenue Notes 15% Services Services Professional Subscription Maintenance for 19% ofadditional Recurring 6REVENUE of revenue &information Revenue Support
Slide 7: Strong Deferred Revenue Growth
Strong +45% $85m $89m $98m $72m $60m $67m $50m $46m entering Q1 Current See Rapid7 2013 Endof revenue $61m $53m booked GROWTH Growth Proprietary Deferred the Notes Q2 Q2 quarter already 2015 2013 for in Long-Term Deferred (YOY) Q3 additional 7 201383% Revenue Q4information Deferred 2013 and Q1 2014
Slide 8: Deferred Revenue Balance Sheet Flow
$30.4m 12% 88% $4.3 Q2 $21.5m June March Deferred as See Rapid7 of2015 End m 30, March 31, Converts Proprietary Recorded Recognized Notes 2015 Revenue billings REVENUE 2015 31Balance for Balance toas Flow additional 8revenue as deferred $4.3M Sheet revenue Driving Sheet and 17% information revenue f
Slide 9: Continued Gross Margin Improvement
Continued 95% 85% 72% 75% 65% 55% 35% 45% 25% 15% and Q2 5% Product See Rapid7 2014 early End 86% 76% 74% improvements Q2 Gross driven 19% 2H 9% Proprietary and Notes 2015 2014 Q1 2015 86% investments Improvement Margin by Maintenance 2015 for 87% Q2 additional 9in 2015 made in&Gross Support in info
Slide 10: Favorable Operating Cash Flow Dynamics
Favorable greater (2%) (4%) driven (13%) (23%) (26%) 2012 payments (34%) Operating ratable longer-term & See Rapid7 subscription End (1%) (5%) 2013 (37%) (28%) by Operating Proprietary Notes Operating Cash Cash 2014 up-front customer for model Flow Flow Q1additional 10 2015 Cash Margin Q2 Flow infor
Slide 11: High-Quality, International Security Customer Base
High-Quality, 34% % International Security & Largest Customers 13 Segment See Rapid7 Analytics +4,150 34 End ofCustomer Proprietary the Industry Notes Data (Technology) %Fortune Revenue Rapidly for Count %additional 11 % 1000 12 Growing Growth 58 Enterprise information Customer Revenue and Base defi
Slide 12: Continued Increase in Renewal Rates
Continued Increase 140% 120% 111% 109% 100% 87% 83% driving 60% and 80% Expiring .40% 20% coming Renewal 0% 2013 See Rapid7 with End renewals, 85% Increase Renewal 2014 112% core 115% Renewal driven better Proprietary inNotes in Rate Revenue 85% at Improvements Enterprise Q1more from in customer Exp
Slide 13: Balance Sheet Summary June 30, 2015
Q2in2015 Balance June ($ Cash Assets Accounts Prepaid Property Goodwill Liabilities Current Other Redeemable Total See Rapid7 End 30, millions) Assets and Term Current Deferred Stockholders’ Liabilities Assets Long-Term Proprietary Expenses Liabilities Sheet Notes 2015 and Summary Cash Receivable, a
Slide 14: Q3 and Full-Year 2015 Guidance
loss Q3 Total Loss Net Weighted 1Guidance non-GAAP GAAP Rapid7 Non-GAAP 2015 Loss per From Revenue financial anticipates Proprietary share FULL-YEAR Per average | Q3 for Operations guidance Share the to guidance and $25.4 measures be third common total Full-Year 14 in (non-GAAP)1 to measures the qua
Slide 15: Notes and Definitions
End Represents monthly following: sale Company’s at 20% 81% 61% $34.7m Margins Non-GAAP All Renewal month Expiring Enterprise Page Current Total The assumes Series placement Rapid7 pro statistics unaudited and Notes Content Products Recurring 3term 4 6 8 9 10 11 12 13 deferred form Dperiod Proprieta
Slide 16: GAAP to Non-GAAP Reconciliation
Endthousands, GAAP (in Q2 Total Gross Loss Plus: Net Weighted loss Rapid7 2015 loss per Notes from Accretion Amortization Acquisition Stock-based gross margin to Proprietary share, attributable (GAAP) (non-GAAP) per Q2 non-GAAP average operations |profit GAAP share, 2014 %except basic of(non-GAAP) r
Slide 17: Rapid7, Boston
Rapid7, 100 Boston, Rapid7 Summer Proprietary MA Inc. 02110 Street