Rapid7 : Company Presentation - Q1 2024

May 7, 2024

Company Overview

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 our annualized recurring revenue (ARR) and growth, ARR opportunity for an average-sized customer, ARR growth per customer, revenue growth, non-GAAP operating margin expansion, free cash flow, and our other non-GAAP measures,our business strategy, plans and objectives for future operations and expectations regarding non-GAAP targets, our future financial and business performance for the second quarter and full-year 2024, and the assumptions underlying such guidance, are forward-looking statements. Our use of the words "anticipate," "believe," "continue," "estimate," "expect," "intend," "may," "will" and similar expressions are intended to identify forward-looking statements. The events described in our forward-looking statements are subject to a number of risks and uncertainties, assumptions and other factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by the forward-looking statements. Risks that could cause or contribute to such differences include, but are not limited to, growing macroeconomic uncertainty, unstable market and economic conditions, fluctuations in our quarterly results, effectiveness of our restructuring plan, failure to meet our publicly announced guidance or other expectations about our business, our ability to sustain our revenue growth rate, the ability of our products and professional services to correctly detect vulnerabilities, competition in the markets in which we operate, market growth, our ability to innovate and manage our growth, our ability to integrate acquired companies, our ability to operate in compliance with applicable laws as well as other risks and uncertainties set forth in the "Risk Factors" section of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 26, 2024 and in the subsequent reports that we file with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those expressed in any forward-looking statements we may make. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this presentation.

This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Neither we nor any other person makes any representation as to the accuracy or completeness of such data or undertakes any obligation to update such data after the date of this presentation. In addition, projections, assumptions and estimates of our future performance and the future performance of the markets in which we operate are necessarily subject to a high degree of uncertainty and risk.

This presentation also contains certain non-GAAP financial measures as defined by the SEC rules. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. Please refer to our May 7, 2024 press release for additional information as to why we believe these non-GAAP financial measures are useful to investors and others in assessing our operating results. As required by Regulation G, we have provided a reconciliation of those measures to their most directly comparable GAAP measures, which is available in the end notes to this presentation. However, the reconciliation of non-GAAP guidance measures to the most comparable GAAP measures does not reflect any items that are unknown at this time, such as non-ordinary course litigation-related expenses, which we are not able to predict without

unreasonable

effort

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their

inherent

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Rapid7 Snapshot

Strong Recurring	High Quality	Attractive	Investing in
Revenue Growth	of Revenue	Customer	Profitable
ARR growth of	Recurring revenue	Economics	Growth
7%	~500bp
11%	96%
YoY 1	of total revenue 1	YoY growth in ARR per	Non-GAAP Operating
		customer 1	Margin Expansion
			Projected in 2024 2

Attractive Prospects Projected ARR growth of 6% in 2024 2

Projected FCF Margin of 19% in 20242

• As of Q1 2024

• Based on FY 2024 guidance provided as of May 7, 2024. Growth rates are at the mid-point of the guidance range.

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Managing Risk and Enabling Innovation

Data keeps our	Accelerated change
connected society	makes it tougher to
functioning.	stay ahead of risks.

We trust security teams to protect our data.

Security needs to keep up with the pace of innovation.

Organizations need best-in-class security that is both

sophisticated and accessible.

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Delivering on Our Mission

We give organizations command

of the attack surface. We smash security

silos to deliver clarity with context across your evolving environment. Together, we can confidently anticipate, pinpoint, and act to secure your business and customers.

Data Platform & Analytics Engine

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.

Integrated Technology & Services

Ecosystem of best-in-class technology, services, and integrations designed for today's modern security landscape and operations.

Expertise & Community

Deliver leading products and expertise built on insights from our experienced security researchers and the security community.

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Rapid7 Insight Platform

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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	that make it easy
context	relevant, actionable	by your side	to demonstrate
	insights across diverse		success
	data sets

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Rapid7 Labs: Global Threat Intelligence Community

Intelligence built into our products & services

Active Risk for vulnerability prioritization, custom detection in MDR, and more

Expert analysis of attack trends, emergent threats, and high-priority vulnerabilities

Ingestion Sources

01

	● Proprietary research
	● IR and Rapid7 SOC
	● Commercial threat feeds
	● Strategic government and
Intelligence	industry partnerships
● Open source communities
Delivery
03	02 Analysis & Development

ETR advisory, research reports, vulnerability disclosures

Active security research & open source communities

AttackerKB, Metasploit open-source framework, Velociraptor, Open Data, Project Doppler

Customer Delivery

• Pro editions of open source software like Metasploit
• Datasets from proprietary research
• Research reports and high-priority vulnerability analysis (blogs, ETR emails)

• Expert threat analysis
• Leverage AI/ML
• Zero-dayand other vulnerability research
• Content development for coverage and detection

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Massive Market Opportunity

$50bn

1

$40bn

$30bn

~$47 bn

$20bn

$10bn

• 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, Worldwide, 2021-2027; Gartner Emerging Tech: Adoption Growth Insights in Digital Risk Protection Services; Gartner Market Share Analysis: Managed Security Services, Worldwide, 2022; Gartner Emerging Tech: Security - Leverage Emerging

MDR Trends to Grow Your Security Service Revenue

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Robust Partner Ecosystem

RESELLERS

DISTRIBUTORS

MARKETPLACES	MSSPs

ALLIANCES	SYSTEM INTEGRATORS

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