Rapid7 (RPD) Raymond James & Associates’ 46th Annual Institutional Investors Conference 2025 summary

Company evolution and market positioning

• Transitioned from mid-market vulnerability management to a broader security operations platform, now serving both mid-market and enterprise clients.

• Focused on simplifying security operations for resource-constrained organizations through integrated data collection, risk management, and threat detection.

• Detection and response now represents over half of the business, with managed detection and response (MDR) as the primary growth engine.

• Investments in automation and AI have enabled scalable, cost-effective monitoring and response services.

• The company leverages a proprietary tech stack, integrating with other technologies to deliver a customizable, high-efficacy solution.

Financial performance and growth drivers

• Detection and response ARR exceeded $400 million in 2024, growing at mid-teens rates, while total ARR surpassed $800 million with mid-single digit growth.

• Customers in detection and response have 40% higher ARR than the corporate average, with MDR accounting for about three-quarters of ARR.

• Traditional risk and vulnerability management business has been flat, with limited expansion in the mid-market and slower cloud adoption.

• Exposure Command, launched to upgrade the core install base, is seeing early positive uptake and targets a 30% uplift versus previous offerings.

• ARR guidance for 2025 is based on existing business and pipeline, with a widened range to account for market variability and no inclusion of unproven new initiatives.

Competitive landscape and partnerships

• Faces competition from service-oriented players (Accenture, IBM), technology-focused MDR providers (ReliaQuest, Expel), and integrated tech vendors (CrowdStrike, Palo Alto, Microsoft).

• Differentiates by offering an integrated, automation-driven platform that covers the entire attack surface at lower cost.

• Strategic partnerships, such as with Comcast Business, are expanding reach and driving growth.

• Microsoft is both a significant technology partner and a competitor, especially in core technology but not in managed security augmentation.