Summary of Rapid7 (RPD) FY Conference Call - August 12, 2025 Company Overview - **Company**: Rapid7 (RPD) - **Industry**: Cybersecurity and Managed Detection Response (MDR) Key Takeaways Financial Performance and Customer Activity - The company reported solid results with a healthy quarter, indicating stability in the macro environment and strong customer activity [3][4] - There was a concentration of larger deals that had previously been hesitant, showing steady momentum in the pipeline overall [3][4] - The detection response business is a significant growth area, now over $400 million, growing in the mid-teens percentage [6][7] Product Portfolio and Market Position - Rapid7 has shifted from a mid-market player to a key expense for mid to larger enterprises, leading to longer deal cycles with higher Average Selling Prices (ASPs) [4][5] - The detection response business is over half of the company's revenue, with plans to expand into compliance and risk management [7][10] - The company is focusing on integrating AI into its security operations to enhance efficiency and effectiveness [11][20] AI and Automation in Security - AI is seen as a double-edged sword; while it benefits bad actors, it also offers significant productivity gains for security teams [17][20] - Rapid7 is in the early stages of leveraging AI to improve security operations, with tools like incident command to automate and organize investigations [21][24] - The company emphasizes the importance of human oversight in automated processes, advocating for a balanced approach to AI integration [22][24] Managed Services and Gross Margins - Rapid7 has one of the best gross margin profiles in the market, with managed services being critical for resource-light organizations [26][27] - The company believes AI can help improve gross margins over time while addressing increasing security compliance requirements [27][28] - The strategy involves unlocking addressable markets while maintaining healthy gross margins [28][30] Talent Acquisition and Global Presence - The talent market has improved significantly, with Boston being a strong source of skilled professionals [32][34] - Rapid7 is expanding its presence in Pune, India, to tap into a growing talent pool and improve cost structures [53][55] Market Outlook and Guidance - The company is experiencing a dislocation in public market valuations, with a belief that the stock is undervalued based on the performance of its MDR business [45][46] - Rapid7 aims to be the leading managed security AI partner, focusing on scaling security operations while providing high-quality outcomes at reasonable costs [56][57] Future Vision - The long-term vision includes becoming the leading managed security AI partner, enhancing services in detection response, risk management, and compliance [56][57] Additional Insights - The company is adjusting its guidance to reflect the larger deal cycles and ASPs, indicating a cautious but optimistic outlook [39][40] - There is a recognition of the need for a strategic approach to customer engagement, focusing on providing high-value solutions [48][49]

Core Insights - AvePoint has introduced new features to its Elements Platform aimed at enhancing data security, streamlining IT management, and optimizing services for managed service providers (MSPs) [1][4] Industry Overview - Nearly one-third of small and midsized businesses (SMBs) are victims of cyberattacks, with 81% believing that AI increases the need for additional security controls, presenting a significant market opportunity for MSPs in Managed Security Services [2] - The AvePoint Elements Platform facilitates scaling deployments and standardizing support with a single vendor, a goal for nearly three-quarters of MSPs [2] Company Developments - The new features in the AvePoint Elements Platform are designed to help MSPs balance security measures with resource optimization and operational efficiency, thereby creating a competitive advantage [3] - AvePoint's strategic investments in 2025 include the acquisition of Ydentic and the launch of the next-generation Elements platform, enhancing security and management capabilities [4] New Features of AvePoint Elements Platform - **Marketplace Integration**: The platform integrates with major distributors, allowing MSPs to manage client licenses directly from the Elements dashboard, reducing administrative overhead and billing errors [5] - **Risk User Insight**: This feature continuously monitors user activities across various security domains, enabling MSPs to proactively detect suspicious behavior and enhance security monitoring services [5] - **License Optimization**: The platform analyzes license usage across client environments, allowing for the recovery of wasted costs and positioning MSPs as strategic advisors [5] - **Storage Optimization**: This solution helps MSPs manage archiving tasks across multiple customers, ensuring compliance and freeing up technical resources for higher-margin security services [5]

Core Insights - AvePoint has announced new capabilities in the AvePoint Elements Platform aimed at empowering managed service providers (MSPs) to enhance user lifecycle management and device management with a focus on security and scalability [1][3] - The managed security services market is projected to reach $56.6 billion by 2027, with over 80% of MSPs currently offering managed detection and response services, indicating a significant growth opportunity for AvePoint and its partners [2] - The latest enhancements to the AvePoint Elements Platform are designed to help MSPs scale operations, improve security, and unlock new revenue streams, thereby driving business growth [3][4] Company Developments - AvePoint completed the acquisition of Ydentic in January 2025 and released the next-generation Elements platform in February 2025, reflecting its commitment to investing in its channel business [1] - The new User Lifecycle Management capabilities automate user provisioning and management, allowing MSPs to enforce Multi-Factor Authentication (MFA) and manage user lifecycles efficiently [7] - The unified Device Management capabilities provide centralized oversight of devices across multiple tenants, automating compliance tasks and enhancing operational efficiency for MSPs [7] Market Context - The increasing pressure on MSPs to enhance security and scale operations is driven by advancing technology and intensifying security challenges [3] - AvePoint's partnership with Microsoft enables partners to deliver more intelligent data security and management strategies, enhancing the value of Microsoft technology investments [4] - The global channel partner program of AvePoint includes approximately 5,000 MSPs, value-added resellers, and systems integrators, indicating a robust ecosystem for collaboration and service delivery [5]