Rapid7 (RPD) Raymond James TMT and Consumer Conference summary

Market opportunity and strategy

• Focused on mid to large enterprises (1,000–20,000 employees), with security outsourcing as a key mandate.

• Managed Detection and Response (MDR), supported by AI, is the fastest-growing business line, now over half of ARR.

• Strategy centers on an integrated security operations platform, leveraging data and AI to expand workloads and use cases.

• Recent additions include AI-driven Red Teaming, with plans for Managed Risk and Compliance services.

• Growth in AI-managed workloads is strong, with further expansion planned to accelerate growth.

Leadership transition and operational focus

• New CFO Rafe Brown brings operational and private equity experience, aiming to drive execution and communication.

• Leadership is focused on managing the ongoing business transition and ensuring accountability.

• Recent leadership hires, including a new Chief Commercial Officer, are tasked with systematizing growth and sales motions.

• The company is prioritizing operational excellence and transparency with investors during the transition.

Growth drivers and business evolution

• Key growth levers: expanding managed services workloads, adding new workloads, and increasing ARR per customer.

• International expansion is a significant opportunity.

• Shifted focus from smaller mid-market to larger enterprises, resulting in higher ASPs and longer sales cycles.

• Sales model now targets CISOs and CIOs, optimizing for larger, more strategic deals.