Rapid7, Inc.

Non-GAAP guidance excludes estimates for stock-based compensation expense, amortization of acquired intangible assets, amortization of debt issuance costs, and certain other items such as acquisition-related expenses, impairment of long-lived assets, restructuring expense, induced conversion expense, change in the fair value of derivative assets, non-ordinary course litigation-related expenses and discrete tax items.

SEC original ↗Rapid7, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

We define non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income and non-GAAP net income per share as the respective GAAP balances excluding the effect of stock-based compensation expense, amortization of acquired intangible assets, amortization of debt issuance costs and certain other items such as acquisition-related expenses, impairment of long-lived assets, change in the fair value of derivative assets, restructuring expense, induced conversion expense and discrete tax items.

SEC original ↗Rapid7, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

Amortization of debt issuance costs.

SEC original ↗Rapid7, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

The expense for the amortization of debt issuance costs related to our convertible senior notes and our former revolving credit facility is a non-cash item, and we believe the exclusion of this interest expense provides a more useful comparison of our operational performance in different periods.

SEC original ↗Rapid7, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

In conjunction with the third quarter of 2023 partial repurchase of our 2.25% convertible senior notes due 2025, we incurred a non-cash induced conversion expense of $53.9 million.

SEC original ↗Rapid7, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after necessary capital expenditures.

SEC original ↗Rapid7, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

Our Detection and Response business remains a consistent growth engine, and we are encouraged by growing customer interest in our Command Platform strategy, said Corey Thomas, CEO of Rapid7.

SEC original ↗Rapid7, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

We remain focused on delivering against these needs with urgency and discipline.

SEC original ↗Rapid7, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

In July, Rapid7 announced the availability of InsightCloudSec and InsightAppSec in the new AWS Marketplace AI Agents and Tools category, empowering organizations to scale generative AI securely and with a focus on compliance.

SEC original ↗Rapid7, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

We empower security professionals to manage a modern attack surface through our best-in-class technology, leading-edge research, and broad, strategic expertise.

SEC original ↗Rapid7, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

The guidance provided above is based on a number of assumptions, estimates and expectations as of the date of this press release and, while presented with numerical specificity, this guidance is inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond Rapid7's control and are based upon specific assumptions with respect to future business decisions or economic conditions, some of which may change.

SEC original ↗Rapid7, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

Non-GAAP guidance excludes estimates for stock-based compensation expense, amortization of acquired intangible assets, amortization of debt issuance costs, and certain other items such as acquisition-related expenses, impairment of long-lived assets, restructuring expense, induced conversion expense, change in the fair value of derivative assets, non-ordinary course litigation-related expenses and discrete tax items.

SEC original ↗Rapid7, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

The reconciliation does not reflect any items that are unknown at this time, including, but not limited to, non-ordinary course litigation-related expenses, which we are not able to predict without unreasonable effort due to their inherent uncertainty.

SEC original ↗Rapid7, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

Non-ordinary course litigation-related expenses.

SEC original ↗Rapid7, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

We exclude non-ordinary course litigation expense because we do not consider legal costs and settlement fees incurred in litigation and litigation-related matters of non-ordinary course lawsuits and other disputes to be indicative of our core operating performance.

SEC original ↗Rapid7, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

The events described in our forward-looking statements are subject to a number of risks and uncertainties, assumptions and other factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by the forward-looking statements.

SEC original ↗Rapid7, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025