Exhibit 99.2
Exhibit 99.2
SECURITY DATA & ANALYTICS
Acquisition of Logentries
OCTOBER 13, 2015 RAPID7 PROPRIETARY
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Disclaimers RAPID7 ACQUISTION OF LOGENTRIES This presentation includes forward-looking statements. All statements contained in this presentation other than statements of historical facts, including statements regarding future results of operations and the financial position of Rapid7, Inc. (“Rapid7,” “we,” “us” or “our”), our business strategy and plans, the anticipated benefits of the acquisition of RevelOps, Inc. d/b/a Logentries (“Logentries”) and the future performance of the combined business, the expected billings, revenue and cost contributions of the acquired business, and our objectives for future operations, are forward-looking statements. The words “anticipate,” believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “will” and similar expressions are intended to identify forwardlooking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, shortterm and long-term business operations and objectives, and financial needs. These forwardlooking statements are subject to a number of risks and uncertainties, including, without limitation, those set forth in the “Risk Factors” section of our Quarterly Report on Form 10Q filed with the Securities and Exchange Commission for the quarterly period ended June 30, 2015. 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 contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. We are under no duty to update any of these forward-looking statements after the date of this presentation to conform these statements to actual results or revised expectations, except as required by law. 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. Moreover, except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forwardlooking statements contained in 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. Rapid7 Proprietary 2
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RAPID7 ACQUISTION OF LOGENTRIES
Acquisition Highlights
Complementary
Machine Data Search to Existing Incident Detection & Response
Natural
Progression of Rapid7 Security Data & Analytics Platform
Disruptive
Pricing & Economics in Log Search
Acceleration
of Rapid7 Roadmap and TAM Penetration
Compelling
Revenue and Cost Synergies
Incremental
$10-12m in Billings in 2016
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RAPID7 ACQUISTION OF LOGENTRIES
Presentation Content
1. Acquisition Overview
2. Logentries’ Compelling Machine Data Search Technology
3. Bringing IT Search to Security
4. Rapid7’s Security Data & Analytics Platform Progression
5. Acquisition Financial Highlights
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RAPID7 ACQUISTION OF LOGENTRIES
Acquisition Overview
LOGENTRIES
Scalable, real-time
MACHINE DATA
search
technology
$68m total consideration
$36m cash
$32m equity
1 Logentries’ Machine Data Search is a Natural Complement to Rapid7’s data collection, technology platform & offerings
2 Unique Search Technology advantage for logs and IT data
3 Accelerates Rapid7 Product Roadmap and TAM Penetration in significant opportunity in security data & analytics
4 Attractive business model Accretive to Rapid7 Revenue
Growth and driving $10-12m in Incremental Billings in 2016
5 Leverages Rapid7’s size, scale & operations to drive compelling Revenue and Cost Synergies
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Logentries RAPID7 ACQUISTION OF LOGENTRIES Company Overview
UNIQUE
Machine Data Search
efficient storage of log data … fast search with probabilistic indexing, alerting & tagging innovative architecture creates low service delivery costs to enable disruptive pricing opportunity
scalable cloud platform
(on AWS) drives efficient service delivery costs
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~30 ~50%
Dublin ~40 Annual ~50% 3000+ R&D Boston Monthly HQ
Customers Subscription ~70 Global
in 65+ Countries Model Employees
RAPID7 ACQUISTION OF LOGENTRIES
Benefits to Rapid7 of Adding Machine Data Search
Delivers world-class search that complements and Accelerates Rapid7’s Market Penetration of Security Data & Analytics
Natural Revenue Synergy as search further unlocks Rapid7’s extensive data collection, increasing customer adoption and driving stickiness
Faster ability to Address Compliance Needs of customers with new search-driven reporting & alerting compliance solutions
Disruptive Pricing increasing Rapid7’s economics & competitive position in Incident Detection & Response
Solid Cost Synergies from shared inside sales model, Ireland engineering teams and AWS operations infrastructure
“The addition of machine data search is a natural progression of our security data & analytics platform.”
Corey Thomas CEO, Rapid7
“By combining with Rapid7, we will be able to reach an evolving and expanding market that is looking for lower cost access to machine data along with advanced security data collection and analytics.”
Andrew Burton CEO, Logentries
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RAPID7 ACQUISTION OF LOGENTRIES
Natural Security Data & Analytics Technology Progression
Threat Exposure Management
Incident Detection & Response
Security Advisory Services
3rd Party Apps
DATA COLLECTION
… from the Endpoint to the Cloud
PACKAGED ANALYTICS SEARCH
across
ANY DATA type
Logentries’ Search Technology is a Natural Addition to Rapid7’s
Security Data & Analytics Technology Platform
Data & Analytics Platform
CONTEXT, ANALYTICS & SEARCH
User Behavior Exposure Attack Behavior Analysis Analysis Analysis
DATA COLLECTION
Asset
Info
User
Data
Behavioral
Data
Mobile Cloud Controls 3rd Party
Info Activity Info Data
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RAPID7 ACQUISTION OF LOGENTRIES
Search Enables New Compliance & Forensics Solutions
Incident Detection & Response will be the first offerings to-market that add new security search functionality in introducing forensics and compliance solutions
AM I VULNERABLE? AM I COMPROMISED? AM I OPTIMIZED?
Key Customer Questions:
THREAT INCIDENT SECURITY
EXPOSURE MANAGEMENT DETECTION & RESPONSE ADVISORY SERVICES
compliance SECURITY compliance SECURITY compliance SECURITY
reporting ANALYTICS reporting ANALYTICS reporting ANALYTICS
Legacy ATTACKER Log BEHAVIORAL Traditional SECURITY
Vulnerability INSIGHTS Aggregation ANALYTICS Testing ASSESSMENT
Management & Reporting
REMEDIATION CONTEXT PROGRAM
STRATEGY
SEARCH
Rapid7 Offerings
… with technology-based differentiation to provide security analytics-driven answers
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RAPID7 ACQUISTION OF LOGENTRIES
Driving Incident Detection & Response With Search
Search Brings Continued Advantage to Rapid7’s ID&R Solutions
Rapid7 Continued Innovation:
Broad data collection from endpoint to the cloud
Leverage modern cloud scale technology for security analytics
Attribute user & entity in minutes
Rapid7 With Search Positioned to Further Lead:
Introduce customer-desired compliance & reporting solutions
Unify detection & investigation with new forensics & compliance
Combine attacker expertise, analytics & machine data search
Unlock the power of Rapid7’s extensive data for customer access
Capitalize on waning value proposition and dislocation of SIEMs
LOGENTRIES
naturally expands Rapid7
Incident Detection & Response
to include
Forensics Compliance
Search
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RAPID7 ACQUISTION OF LOGENTRIES
Disrupting Spend & Accelerating TAM Penetration
IDC RAPID7
IT Security Security Data & Analytics
SPEND AREAS OFFERINGS
Vulnerability Assessment $1.5 Threat Exposure Management
SIEM, Policy & Compliance 2.9
Network Intrusion Detection & Prevention,
Forensics & Incident Management 2.6 Incident Detection & Response
Endpoint Security Suites 2.3
Security Services 3.3 Security Advisory Services
TOTAL MARKET TODAY $12.6B
$12.6B
SECURITY
DATA &
ANALYTICS
market
opportunity
today
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Rapid7 estimates based on IDC data
RAPID7 ACQUISTION OF LOGENTRIES
Rapid7’s Winning Combination Even Better
Extensive Data Collection
Security &
Attacker Insights
Rapid7 Addresses Key
Customer Pain Points With …
Contextual
Analytics
Fast & Disruptive IT Search
Intuitive User
Experience
NEW CAPABILITIES WITH
ACQUISITION OF LOGENTRIES
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RAPID7 ACQUISTION OF LOGENTRIES
Overview of Financial Terms & Impact
DEAL STRUCTURE: Equity Purchase
Total Purchase Consideration: $68m
$36m of cash $32m of Rapid7 equity
from Rapid7 • 1.3m shares of restricted common stock
Balance Sheet • Assumed vested options representing
CASH EQUITY 0.2m shares of common stock
Revenue & Cost Synergies
Complementary usage and sale of Offshore & proximate
UserInsight + machine data search engineering teams
Strong cross-selling opportunity Inside sales and GTM
REVENUE across product portfolio COST leverage
anticipate driving
$10-12m
in
INCREMENTAL
BILLINGS in 2016
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RAPID7 ACQUISTION OF LOGENTRIES
Acquisition Highlights
Complementary
Machine Data Search to Existing Incident Detection & Response
Natural
Progression of Rapid7 Security Data & Analytics Platform
Disruptive
Pricing & Economics in Log Search
Acceleration
of Rapid7 Roadmap and TAM Penetration
Compelling
Revenue and Cost Synergies
Incremental
$10-12m in Billings in 2016
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Rapid7, Inc.
100 Summer Street
Boston, MA 02110
Rapid7 Proprietary
