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Rapid7

DB:R7D
Snowflake Description

Excellent balance sheet with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
R7D
DB
$2B
Market Cap
  1. Home
  2. DE
  3. Software
Company description

Rapid7, Inc. provides analytics solutions for security and information (IT) operations. The last earnings update was 50 days ago. More info.


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  • Rapid7 has significant price volatility in the past 3 months.
R7D Share Price and Events
7 Day Returns
-4%
DB:R7D
0.8%
DE Software
2.4%
DE Market
1 Year Returns
97.8%
DB:R7D
14.5%
DE Software
-6.2%
DE Market
R7D Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Rapid7 (R7D) -4% -0.6% 39.5% 97.8% 334.4% -
DE Software 0.8% 1.1% 9% 14.5% 44.8% 82.6%
DE Market 2.4% 3% 7.4% -6.2% 9.6% 14.1%
1 Year Return vs Industry and Market
  • R7D outperformed the Software industry which returned 14.5% over the past year.
  • R7D outperformed the Market in Germany which returned -6.2% over the past year.
Price Volatility
R7D
Industry
5yr Volatility vs Market

R7D Value

 Is Rapid7 undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Rapid7 to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Rapid7.

DB:R7D Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:R7D
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.134 (1 + (1- 21%) (7.34%))
1.134
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.134 * 5.96%)
6.98%

Discounted Cash Flow Calculation for DB:R7D using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Rapid7 is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:R7D DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.98%)
2019 -3.86 Analyst x8 -3.60
2020 34.69 Analyst x6 30.30
2021 63.00 Analyst x1 51.45
2022 88.63 Est @ 40.67% 67.65
2023 113.92 Est @ 28.54% 81.28
2024 136.76 Est @ 20.05% 91.21
2025 156.04 Est @ 14.1% 97.28
2026 171.55 Est @ 9.94% 99.96
2027 183.60 Est @ 7.03% 100.00
2028 192.76 Est @ 4.99% 98.14
Present value of next 10 years cash flows $713.68
DB:R7D DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $192.76 × (1 + 0.23%) ÷ (6.98% – 0.23%)
$2,859.69
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,859.69 ÷ (1 + 6.98%)10
$1,455.91
DB:R7D Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $713.68 + $1,455.91
$2,169.58
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,169.58 / 47.97
$45.23
DB:R7D Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:R7D represents 0.89581x of NasdaqGM:RPD
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.89581x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 45.23 x 0.89581
€40.51
Value per share (EUR) From above. €40.51
Current discount Discount to share price of €44.45
= -1 x (€44.45 - €40.51) / €40.51
-9.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Rapid7 is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Rapid7's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Rapid7's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:R7D PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-1.20
NasdaqGM:RPD Share Price ** NasdaqGM (2019-04-18) in USD $49.62
Germany Software Industry PE Ratio Median Figure of 22 Publicly-Listed Software Companies 36.7x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 19.67x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Rapid7.

DB:R7D PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:RPD Share Price ÷ EPS (both in USD)

= 49.62 ÷ -1.20

-41.5x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rapid7 is loss making, we can't compare its value to the DE Software industry average.
  • Rapid7 is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does Rapid7's expected growth come at a high price?
Raw Data
DB:R7D PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -41.5x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
44.9%per year
Germany Software Industry PEG Ratio Median Figure of 14 Publicly-Listed Software Companies 2.8x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Rapid7, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Rapid7's assets?
Raw Data
DB:R7D PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $1.84
NasdaqGM:RPD Share Price * NasdaqGM (2019-04-18) in USD $49.62
Germany Software Industry PB Ratio Median Figure of 34 Publicly-Listed Software Companies 2.93x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.85x
DB:R7D PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:RPD Share Price ÷ Book Value per Share (both in USD)

= 49.62 ÷ 1.84

27.04x

* Primary Listing of Rapid7.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rapid7 is overvalued based on assets compared to the DE Software industry average.
X
Value checks
We assess Rapid7's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Rapid7 has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

R7D Future Performance

 How is Rapid7 expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
44.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Rapid7 expected to grow at an attractive rate?
  • Unable to compare Rapid7's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Rapid7's earnings growth to the Germany market average as it is expected to be loss making during the next 1-3 years.
  • Rapid7's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:R7D Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:R7D Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 44.9%
DB:R7D Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 18.2%
Germany Software Industry Earnings Growth Rate Market Cap Weighted Average 11.9%
Germany Software Industry Revenue Growth Rate Market Cap Weighted Average 7.7%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:R7D Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:R7D Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 564 1
2021-12-31 455 79 3
2020-12-31 375 44 -21 15
2019-12-31 309 18 -36 15
DB:R7D Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 244 6 -56
2018-09-30 233 2 -56
2018-06-30 221 12 -54
2018-03-31 210 17 -51
2017-12-31 201 13 -45
2017-09-30 188 12 -42
2017-06-30 178 8 -42
2017-03-31 168 14 -44
2016-12-31 157 9 -49
2016-09-30 145 2 -60
2016-06-30 133 3 -76
2016-03-31 122 0 -96

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Rapid7 is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Rapid7's revenue is expected to grow by 18.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:R7D Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Rapid7 Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:R7D Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 -0.36 -0.31 -0.39 4.00
2019-12-31 -0.68 -0.54 -0.76 4.00
DB:R7D Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -1.20
2018-09-30 -1.22
2018-06-30 -1.21
2018-03-31 -1.17
2017-12-31 -1.06
2017-09-30 -0.99
2017-06-30 -1.00
2017-03-31 -1.06
2016-12-31 -1.19
2016-09-30 -1.48
2016-06-30 -1.96
2016-03-31 -3.02

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Rapid7 is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Rapid7's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Rapid7 has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

R7D Past Performance

  How has Rapid7 performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Rapid7's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Rapid7 does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Rapid7's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Rapid7's 1-year growth to the DE Software industry average as it is not currently profitable.
Earnings and Revenue History
Rapid7's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Rapid7 Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:R7D Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 244.09 -55.55 157.38 67.74
2018-09-30 233.05 -55.53 154.88 64.02
2018-06-30 221.21 -53.98 151.76 60.48
2018-03-31 210.21 -51.29 147.05 56.27
2017-12-31 200.94 -45.47 141.72 50.94
2017-09-30 188.24 -42.24 134.30 48.00
2017-06-30 178.06 -42.15 127.57 45.75
2017-03-31 167.89 -43.97 121.50 46.21
2016-12-31 157.44 -49.00 118.81 46.76
2016-09-30 145.26 -60.33 116.71 49.85
2016-06-30 133.23 -76.12 109.07 47.99
2016-03-31 121.75 -95.70 99.89 43.79
2015-12-31 110.53 -99.08 87.75 38.26
2015-09-30 99.61 -124.10 75.01 30.80
2015-06-30 91.63 -92.64 69.05 27.67
2015-03-31 83.72 -83.26 64.64 25.86
2014-12-31 76.88 -84.96 61.98 25.57
2013-12-31 60.03 -52.43 44.37 21.41
2012-12-31 46.04 -38.00 33.81 17.82

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Rapid7 has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Rapid7 has efficiently used its assets last year compared to the DE Software industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Rapid7 improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Rapid7's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Rapid7 has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

R7D Health

 How is Rapid7's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Rapid7's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Rapid7 is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Rapid7's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Rapid7's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Rapid7 Company Filings, last reported 3 months ago.

DB:R7D Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 87.32 174.69 258.78
2018-09-30 93.10 172.17 271.79
2018-06-30 69.54 0.00 114.71
2018-03-31 73.92 0.00 129.28
2017-12-31 24.15 0.00 90.74
2017-09-30 31.77 0.00 83.88
2017-06-30 34.63 0.00 84.28
2017-03-31 37.86 0.00 79.22
2016-12-31 42.04 0.00 71.93
2016-09-30 47.65 0.00 87.72
2016-06-30 51.15 0.00 84.76
2016-03-31 60.62 0.00 83.51
2015-12-31 68.08 0.30 86.55
2015-09-30 52.46 0.00 123.98
2015-06-30 -49.98 17.15 27.00
2015-03-31 -41.96 17.01 33.34
2014-12-31 -35.26 16.87 36.82
2013-12-31 -32.58 16.32 20.61
2012-12-31
  • Rapid7's level of debt (200.1%) compared to net worth is high (greater than 40%).
  • Rapid7 had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Rapid7 has sufficient cash runway for more than 3 years based on current free cash flow.
  • Rapid7 has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -2.3% each year.
X
Financial health checks
We assess Rapid7's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Rapid7 has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

R7D Dividends

 What is Rapid7's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Rapid7 dividends. Estimated to be 0% next year.
If you bought €2,000 of Rapid7 shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Rapid7's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Rapid7's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:R7D Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
Germany Software Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 1.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:R7D Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.00 1.00
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
2019-12-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Rapid7 has not reported any payouts.
  • Unable to verify if Rapid7's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Rapid7's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Rapid7 has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Rapid7's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Rapid7's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Rapid7 afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Rapid7 has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

R7D Management

 What is the CEO of Rapid7's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Corey Thomas
COMPENSATION $2,569,829
AGE 42
TENURE AS CEO 6.5 years
CEO Bio

Mr. Corey E. Thomas serves as Director at LPL Financial Holdings Inc. He has been the Chief Executive Officer at Rapid7, Inc., since October 2012 and its Chairman since February 24, 2019. Mr. Thomas was the President at Rapid7, Inc. since October 2012 until 2019. He has more than 15 years experience leading marketing and technical functions at top companies. He served as an Executive Vice President of Sales, Marketing, & Operations and Vice President of Marketing & Product Management at Rapid7, Inc. and also served as its Chief Operating Officer from November 2008 to September 2012 and Vice President of Marketing since November 2008. He focused on implementing strategies for product management, product marketing and lead generation and management at Rapid7. He is instrumental in broadening Rapid7's global presence in target markets and further driving demand for NeXpose, its solution for vulnerability management and assessment of Web applications, databases and operating systems and networks. He served as Vice President of Consumer & Business Marketing and Vice President of Parallels Marketing & Business Development of Parallels, Inc. He led product marketing, product management and business development for Parallels. He served a number of leadership positions including Group Project Manager of the Microsoft Server and Tools division. He led the product planning effort to define Microsoft's Data Platform and Storage strategy. He led SQL Server's enterprise marketing team, including the worldwide launch of it in 2005. He served as Management Consultant for Deloitte Consulting, focusing on technology and operations at large multinational banks. He has been a Director of Blue Cross and Blue Shield of Massachusetts, Inc. since March 9, 2017 and Rapid7, Inc. since October 2012. He has served on the U.S. Commerce Department's Digital Economy Board of Advisors since 2016. Mr. Thomas holds a BE in Electrical Engineering and Computer Science from Vanderbilt University and an MBA from Harvard Business School, where he graduated with high distinction.

CEO Compensation
  • Corey's compensation has been consistent with company performance over the past year.
  • Corey's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Rapid7 management team in years:

4.4
Average Tenure
45.5
Average Age
  • The tenure for the Rapid7 management team is about average.
Management Team

Corey Thomas

TITLE
Chairman & CEO
COMPENSATION
$3M
AGE
42
TENURE
6.5 yrs

Jeff Kalowski

TITLE
Chief Financial Officer
COMPENSATION
$5M
AGE
62
TENURE
2.3 yrs

Lee Weiner

TITLE
Chief Product Officer
COMPENSATION
$1M
AGE
44
TENURE
6.1 yrs

Andrew Burton

TITLE
President & COO
COMPENSATION
$2M
AGE
46
TENURE
0.3 yrs

Tas Giakouminakis

TITLE
Co-Founder & CTO

Neeraj Mahajan

TITLE
Vice President of Investor Relations

Peter Kaes

TITLE
General Counsel & Corporate Secretary
TENURE
2.8 yrs

Carol Meyers

TITLE
Chief Marketing Officer
AGE
56
TENURE
7.3 yrs

Conan Reidy

TITLE
Senior Vice President of Corporate Development and Strategic Alliances
AGE
45
TENURE
1.3 yrs

Christina Luconi

TITLE
Chief People Officer
TENURE
8.3 yrs
Board of Directors Tenure

Average tenure and age of the Rapid7 board of directors in years:

2.8
Average Tenure
52.5
Average Age
  • The average tenure for the Rapid7 board of directors is less than 3 years, this suggests a new board.
Board of Directors

Corey Thomas

TITLE
Chairman & CEO
COMPENSATION
$3M
AGE
42
TENURE
0.2 yrs

Ben Nye

TITLE
Lead Independent Director
COMPENSATION
$242K
AGE
52
TENURE
0.2 yrs

Mike Berry

TITLE
Independent Director
COMPENSATION
$247K
AGE
55
TENURE
6.4 yrs

Ben Holzman

TITLE
Independent Director
COMPENSATION
$230K
AGE
43
TENURE
10.7 yrs

Tim McAdam

TITLE
Independent Director
COMPENSATION
$235K
AGE
50
TENURE
7.4 yrs

Marc Brown

TITLE
Director
COMPENSATION
$241K
AGE
53
TENURE
2.8 yrs

Tom Schodorf

TITLE
Director
COMPENSATION
$265K
AGE
60
TENURE
2.8 yrs

Judy Bruner

TITLE
Director
COMPENSATION
$237K
AGE
59
TENURE
2.5 yrs
Who owns this company?
Recent Insider Trading
  • Rapid7 insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
26. Feb 19 Sell Goose Rocks Beach Partners, L.P. Company 22. Feb 19 22. Feb 19 -33,567 €40.58 €-1,362,117
26. Feb 19 Sell David Yuan Individual 22. Feb 19 22. Feb 19 -10,600 €40.57 €-430,007
20. Feb 19 Sell Drew Family Trust Company 14. Feb 19 14. Feb 19 -17,780 €40.45 €-719,251
20. Feb 19 Sell Robert Trudeau Individual 14. Feb 19 14. Feb 19 -28,665 €41.14 €-1,160,129
20. Feb 19 Sell Technology Crossover Ventures Company 14. Feb 19 15. Feb 19 -30,367 €40.51 €-1,229,457
13. Nov 18 Sell Bain Capital, LP Company 12. Nov 18 12. Nov 18 -2,182,713 €29.34 €-64,034,251
13. Sep 18 Sell Drew Family Trust Company 11. Sep 18 11. Sep 18 -17,186 €32.70 €-562,026
13. Sep 18 Sell Goose Rocks Beach Partners, L.P. Company 11. Sep 18 11. Sep 18 -81,161 €32.56 €-2,643,007
13. Sep 18 Sell Christopher Marshall Individual 11. Sep 18 11. Sep 18 -10,618 €33.17 €-347,940
13. Sep 18 Sell Hamilton Investments Limited Partnership Company 11. Sep 18 11. Sep 18 -23,477 €33.61 €-789,061
13. Sep 18 Sell Marshall Partners Company 11. Sep 18 11. Sep 18 -152 €33.17 €-4,981
13. Sep 18 Sell Robert Trudeau Individual 11. Sep 18 11. Sep 18 -27,705 €32.79 €-908,582
13. Sep 18 Sell Technology Crossover Ventures Company 11. Sep 18 11. Sep 18 -2,158 €33.18 €-70,804
13. Sep 18 Sell Technology Crossover Ventures Company 12. Sep 18 12. Sep 18 -9,622 €32.21 €-309,932
13. Sep 18 Sell David Yuan Individual 11. Sep 18 11. Sep 18 -10,217 €32.95 €-332,073
13. Sep 18 Sell Timothy McAdam Individual 11. Sep 18 11. Sep 18 -7,773 €32.91 €-255,788
30. May 18 Sell Alan Matthews Individual 25. May 18 30. May 18 -150,000 €26.42 €-3,911,631
17. May 18 Sell Bain Capital, LP Company 16. May 18 16. May 18 -1,500,000 €25.46 €-38,182,500
16. May 18 Sell Technology Crossover Ventures Company 16. May 18 16. May 18 -1,500,000 €25.46 €-38,182,500
X
Management checks
We assess Rapid7's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Rapid7 has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

R7D News

Simply Wall St News

R7D Company Info

Description

Rapid7, Inc. provides analytics solutions for security and information (IT) operations. Its vulnerability management solutions include InsightVM and Nexpose, which enable customers to assess and remediate their overall exposure to cyber risk; InsightAppSec, an insight platform based solution; AppSpider, an application security testing solution; and Metasploit, a penetration testing software solution. The company’s incident detection and response solutions comprise InsightIDR; Managed Detection and Response, an outsourced service; and incident response services that offer customers with access to security experts and experience. In addition, it provides Logentries for cyber security; InsightOps, which simplifies IT infrastructure monitoring and troubleshooting by centralizing data from customers’ network into a secure location; and Komand software. Further, the company provides consulting services in the areas of cyber security maturity assessment, incident response program development, penetration testing, security program development, Virtual CISO, IoT security, and threat modeling services. It offers its products through a combination of perpetual and term software licenses, cloud-based subscriptions, and managed services. The company serves clients in technology, energy, financial services, healthcare and life sciences, manufacturing, media and entertainment, retail, education, real estate, transportation, government, and professional services industries through sales teams, and indirect channel partner relationships, as well as directly in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Rapid7, Inc. was incorporated in 2000 and is headquartered in Boston, Massachusetts.

Details
Name: Rapid7, Inc.
R7D
Exchange: DB
Founded: 2000
$2,116,567,861
47,970,692
Website: http://www.rapid7.com
Address: Rapid7, Inc.
100 Summer Street,
13th Floor,
Boston,
Massachusetts, 02110,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM RPD Common Shares Nasdaq Global Market US USD 17. Jul 2015
DB R7D Common Shares Deutsche Boerse AG DE EUR 17. Jul 2015
LSE 0KTX Common Shares London Stock Exchange GB USD 17. Jul 2015
Number of employees
Current staff
Staff numbers
1,246
Rapid7 employees.
Industry
Systems Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 22:02
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/19
Last earnings filing: 2019/02/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.