Rapid7 : Company Presentation - Q3 2023

November 1, 2023

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 climate and carbon neutrality pledges, our business strategy, plans and objectives for future operations and expectations regarding non-GAAP targets, our future financial and business performance for the fourth quarter and full-year 2023, our free cash flow projections for 2023 and 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 Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (SEC) on August 9, 2023 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 November 1, 2023 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, a reconciliation of non-GAAP guidance measures to the most comparable GAAP guidance measures is not available on a forward-looking basis without unreasonable efforts due to the high variability, complexity and low visibility with respect to

the

charges

excluded

from

these

non-GAAP

guidance

measures.

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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%	+750bp
14%	95%
YoY 1	of total revenue 1	YoY growth in ARR per	Non-GAAP Operating
		customer 1	Margin Expansion
			Projected in 2023 2

Attractive Prospects Projected ARR growth of 12% in 2023 2

Projected FCF Margin of 10% in 20232

• As of Q3 2023

• Based on FY 2023 guidance provided as of November, 2023. Growth rates are at the mid-point of the guidance range.

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Managing Risk and Enabling Innovation

Data keeps our

connected society

functioning.

Accelerated change makes it tougher to 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.

4

Delivering on

Our Mission

Make the most successful security technologies and practices accessible to all.

Best-in-Class Technology

Unite teams and tools with award-winning cloud products delivering visibility, analytics, and automation.

Unified Cloud Platform

Enrich customer experiences with broad environment visibility, seamless integrations and ease of scaling.

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

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 shuts down attacks, or automates operations.

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Landing and Expanding Across Multiple Pillars

Threat Detection	Cloud	Vulnerability Risk
& Response	Security	Management

Threat Intelligence

Intelligent Automation

Shared Insight Engine

Collection, Data, Analytics Services

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Accessibility to Insight via Tailored SecOps Pillars

Threat Detection	Cloud	Vulnerability Risk
& Response	Security	Management

Shared Insight Engine

Automation Orchestration Workflow Action

Analytics

User Behavior

Attacker Behavior

Vulnerability Prioritization

Policy Compliance

Identity Governance

Remediation

Data

Searchable

Unstructured & Structured

Long Term Archival

High Volume

Integrations

Collection

Cloud

Endpoint

Logs

Network

Apps

API

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Best-in-Class Threat Detection & Response

Broad Visibility Across Cloud and On-premise

Detection-oriented Analytics

Automated Containment & Response

Automation

Analytics

Data

Collection

Custom Escalation Workflows

UBA ABA ML

Integrations

Cloud Endpoint Network

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Best-in-Class

Cloud Security

Multi-cloud Risk Visibility & Analytics

Extensible & Customizable to Connect Security and DevOps Teams

Real-time Automated Remediation

Automation

Analytics

Data

Collection

Native & Integrated

CIEM CWPP CSPM

AWS Azure GCP OCI

Cloud

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