Rapid7 S-1 Analysis (NASDAQ:RPD)

Exchange: NASDAQ Global Mkt

Proposed Symbol: RPD

CEO: Corey Thomas

Offer Amount: $80 mm

No. of Shares to be sold in IPO: TBA

No. of Shares Outstanding: TBA

Price Range: TBA

Mkt Cap at Midpoint of Proposed range: TBA

Expected IPO Date: TBA

Description from S-1: “Rapid7 is a leading provider of security data and analytics solutions that enable organizations to implement an active, analytics-driven approach to cyber security. Our security data and analytics platform was purpose built for today’s increasingly complex and chaotic IT environment. We combine our extensive experience in security data and analytics and deep insight into attacker behaviors and techniques to make sense of the wealth of data available to organizations about their IT environments and users. There has been an explosion of increasingly sophisticated cyber attacks as the proliferation of mobile devices, cloud-based applications and solutions relying on user credentials has eliminated the boundaries that previously defined an organization’s network perimeter and expanded the threat surface that organizations must now defend. Our powerful and proprietary analytics enable organizations to contextualize and prioritize the threats facing their physical, virtual and cloud assets, including those posed by the behaviors of their users. Leveraging our security data and analytics platform, our solutions enable organizations to strategically and dynamically manage their cyber security exposure. Our solutions empower organizations to prevent attacks by providing visibility into vulnerabilities and to rapidly detect compromises, respond to breaches and correct the underlying causes of attacks. This balanced and analytics-focused approach ultimately better secures organizations’ environments and reduces the likelihood of, and risks associated with, cyber attacks. We believe our technology and solutions revolutionize the practice of cyber security and are central and critical to implementing a modern security program.”

Underwriters:

  • Lead Underwriter: Morgan Stanley & Co. LLC, Barclays Capital Inc.
  • Co Managers: Pacific Crest Securities, William Blair & Company, L.L.C., Raymond James & Associates Inc., Cowen and Company, LLC

Competitors: Cyberark Software, Fireeye, Proofpoint, Imperva, Palo Alto Networks, Splunk, McAfee, IBM, Qualys, Zix Corp, VASCO Data Security, MobileIron, Mandiant (subsidiary of FEYE), Tenable Network Security, Alien Vault, CloudFlare, Bit9, EndGame, Lookout, Fortinet, Infoblox, Sourcefire

Revenue:

  • 2012 = $46.044 mm
  • 2013 = $60.03
  • 2014 = $76.88 mm
  • 3 months ended 03/31/15 = $23.571 mm
    • 3 months ended 03/31/14 = $16.736 mm

R & D Expenses:

  • 2012 = $17.820 mm
  • 2013 = $21.411 mm
  • 2014 = $25.570 mm
  • 3 months ended 03/31/15 = $6.414 mm
    • 3 months ended 03/31/14 = $6.120 mm

Sales & Marketing Expenses:

  • 2012 = $23.278 mm
  • 2013 = $31.779 mm
  • 2014 = $49.007 mm
  • 3 months ended 03/31/15 = $13.230 mm
    • 3 months ended 03/31/14 = $11.004 mm

Net Income:

  • 2012 = $37.822 mm
  • 2013 = $47.152 mm
  • 2014 = $58.408 mm
  • 3 months ended 03/31/15 = $17.079 mm
    • 3 months ended 03/31/14 = $12.878 mm

Cash: $33.343 mm

Total Assets: $79.382 mm

Debt: $17.01 mm

Other Notes

  • Based in Boston, MA
  • Founded in 2000
  • Rapid7 makes cybersecurity/datasecurity software.
  • Funding Round:
    • Private Equity – $136 mm
      • July 24, 2012
      • Investor = Technology Crossover Ventures
  • Companies such as Cyberark (CYBR), Palo Alto Networks (PANW), Proofpoint (PFPT), VASCO Data Security (VDSI), Fireeye (FEYE), Qualys (QLYS), Infoblox (BLOX), and Imperva (IMPV) have gon epublic within the last 2 years and have performed well
    • CYBR went up 87% on its first day of trading; FEYE went up 80% on its first day
      • CYBR has a total return of 315%
      • PANW is up 125% in the past year
    • RPD will likely ride the hot cybersecurity software wave, and will perform well, expecially considering the performances of its peers.
Advertisements
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s