Case 1:18-cv-01519-MN Document 144-8 Filed 06/04/20 Page 1 of 15 PageID #: 6256
`Case 1:18—cv-01519—MN Document 144-8 Filed 06/04/20 Page 1 of 15 PageID #: 6256
`
`EXHIBIT 8
`
`EXHIBIT 8
`
`
`
`
`
`
`
`
`
`

`

`6/3/2020
`
`Rapid7 Announces First Quarter 2020 Financial Results | Rapid7 Inc
`Case 1:18-cv-01519-MN Document 144-8 Filed 06/04/20 Page 2 of 15 PageID #: 6257
`
`About
`
`For Customers
`
`Free Tools
`
`Investor Relations
`
`Overview SEC Filings
`
`Press Releases
`
`Events & Presentations
`
`Annual Reports
`
`Leadership & Governance
`
`Stock
`
`Resources
`
`Analyst Coverage
`
`PRESS RELEASE
`View printer-friendly version
`
`
`05/07/20
`
`<< Back
`
`Rapid7 Announces First Quarter 2020 Financial
`Results
`Annualized recurring revenue (ARR) of $350.9 million, an increase of 31% year-over-year
`Revenue of $94.3 million, 29% year-over-year growth, achieved 90% recurring revenue mix in the
`period
`Total customer growth of 14% year-over-year
`Products revenue of $87.5 million, 33% year-over-year growth
`
`BOSTON, May 07, 2020 (GLOBE NEWSWIRE) -- Rapid7, Inc. (Nasdaq: RPD), a leading provider of security
`analytics and automation, today announced its nancial results for the rst quarter of 2020.
`
`https://investors.rapid7.com/news-releases/news-release-details/rapid7-announces-first-quarter-2020-financial-results
`
`1/14
`
`
`

`

`6/3/2020
`Rapid7 Announces First Quarter 2020 Financial Results | Rapid7 Inc
`Case 1:18-cv-01519-MN Document 144-8 Filed 06/04/20 Page 3 of 15 PageID #: 6258
`"Rapid7 delivered a solid start to 2020 amidst a rapidly-shifting environment, exceeding the high end of
`our guidance range for the rst quarter with revenue of $94.3 million and non-GAAP loss from
`operations of $(3.9) million, and we strengthened our balance sheet through a recent successful
`convertible note oering" said Corey Thomas, Chairman and CEO of Rapid7.
`
`"Our rst quarter results reect our long standing commitment to innovation as we have built multiple
`market leading products on an integrated Platform. We remain focused on our long-term opportunity to
`deliver enhanced value and outcomes to our customers, both through sustained organic innovation
`and via strategic additions such as our recent acquisition of DivvyCloud."
`
`First Quarter 2020 Financial Results and Key Metrics
`
` 
` 
` 
`Annualized recurring revenue
`Number of customers
`ARR per customer
`Recurring revenue as a percentage of total revenue
`Renewal rate
`(1)
`
`Three Months Ended March 31,
`2020
`2019
`% Change
`(dollars in thousands)
`350,884  $
`268,194 
`9,024 
`7,934 
`38.9  $
`33.8 
`90%
`85% 
`106%
`117% 
`
`31%
`14%
`15%
`
`$
`
`$
`
`For the three months ended March 31, 2019 our renewal rate was adjusted from 120%, as previously
`(1)
`disclosed, to 117% based on a reclassication of certain upsells and cross-sells.
`
` 
` 
` 
`Products revenue
` (2)
`Professional services revenue
`Total revenue
`
` 
`North America revenue
`Rest of world revenue
`Total revenue
`
` 
`GAAP gross prot
`GAAP gross margin
`Non-GAAP gross prot
`Non-GAAP gross margin
`
` 
`GAAP loss from operations
`GAAP operating margin
`Non-GAAP (loss) income from operations
`Non-GAAP operating margin
`
`$
`
`$
` 
`$
`
`$
` 
`$
`
`$
`
` 
`$
`
`$
`
`33%
`(7)%
`29%
`
`27%
`40%
`
`78,705 
`15,635 
`94,340 
`
`62,039 
`11,146 
`73,185 
`
`Three Months Ended March 31,
`2020
`2019
`  % Change
` 
`(in thousands, except per share data)
`87,549 
`  $
`65,845 
` 
`6,791 
` 
`7,340 
` 
`94,340 
`  $
`73,185 
` 
`   
`   
`  $
` 
` 
` 
`  $
`   
`   
`   
`  $
`   
`66,626 
`53,212 
`71%  
`73%    
`69,215 
`  $
`55,143 
`   
`73%  
`75%    
`   
`   
`  $
`   
`(19,820)
`(9,744)
`(21)% 
`(13)%   
`(3,933)
`  $
`577 
`   
`(4)% 
`1%    
`
`https://investors.rapid7.com/news-releases/news-release-details/rapid7-announces-first-quarter-2020-financial-results
`
`2/14
`
`

`

`6/3/2020
` 
`GAAP net loss
`GAAP net loss per share, basic and diluted
`Non-GAAP net (loss) income
`Non-GAAP net (loss) income per share, basic
`Non-GAAP net (loss) income per share, diluted
` 
`Adjusted EBITDA
` 
`Cash used in operating activities
`
`(22,924)
`(0.46)
`(4,294)
`(0.09)
`(0.09)
`
`(780)
`
`(7,215)
`
`Rapid7 Announces First Quarter 2020 Financial Results | Rapid7 Inc
`Case 1:18-cv-01519-MN Document 144-8 Filed 06/04/20 Page 4 of 15 PageID #: 6259
` 
`   
`   
`$
`  $
`   
`$
`  $
`   
`$
`  $
`   
`$
`  $
`   
`$
`  $
`   
` 
`   
`   
`$
`  $
`   
` 
`   
`   
`$
`  $
`   
`
`(11,673)
`(0.24)
`1,158 
`0.02 
`0.02 
`
`2,607 
`
`(13,566)
`
`Historically, we have presented revenue on our consolidated statement of operations as products,
`(2)
`maintenance and support and professional services revenue. For the three months ended March 31,
`2020, we have combined products and maintenance and support revenue together as products revenue
`on our consolidated statement of operations. Prior periods have been adjusted to conform with this
`presentation.
`
`For additional details on the reconciliation of non-GAAP measures and certain other business metrics to
`their nearest comparable GAAP measures, please refer to the accompanying nancial data tables
`included in this press release.
`
`Recent Business Highlights
`
`On May 1, 2020, Rapid7 closed the acquisition of DivvyCloud, a leader in Cloud Security Posture
`Management (CSPM). DivvyCloud will extend the cloud security capabilities of Rapid7’s Insight
`platform, accelerating the company's ability to address foundational elements of customers’ cloud
`programs by helping to secure their cloud assets.
`On May 1, 2020, Rapid7 issued an aggregate of $230.0 million principal amount of 2.25% convertible
`senior notes due 2025 in a private placement.
`In February 2020, Rapid7 was recognized as a Leader in Gartner's 2020 Magic Quadrant for Security
`Information and Event Management (SIEM).
`In April 2020, Rapid7 was named a Challenger in Gartner's 2020 Magic Quadrant and Critical
`Capabilities for Application Security Testing, and received the highest score among vendors for
`Dynamic Application Security Testing.
`In April 2020, Rapid7 announced that Network Trac Analysis (NTA) is now available in InsightIDR,
`the rst of several new capabilities leveraging technology acquired from the company's purchase of
`NetFort in 2019.
`
`Second Quarter and Full-Year 2020 Guidance
`
`Rapid7 anticipates annualized recurring revenue, revenue, non-GAAP income (loss) from operations, and
`non-GAAP net (loss) income per share to be in the following ranges:
`
`https://investors.rapid7.com/news-releases/news-release-details/rapid7-announces-first-quarter-2020-financial-results
`
`3/14
`
`

`

`Rapid7 Announces First Quarter 2020 Financial Results | Rapid7 Inc
`6/3/2020
`Case 1:18-cv-01519-MN Document 144-8 Filed 06/04/20 Page 5 of 15 PageID #: 6260
`Second Quarter and Full-Year 2020 Guidance (in millions, except per share data)
` 
` 
` 
`Annualized recurring revenue
`Year-over-year growth
`Revenue
`Year-over-year growth
`Non-GAAP income (loss) from operations
`Non-GAAP net (loss) income per share
`Weighted average shares outstanding
`
` 
` 
`$
`
`$
`$
` 
`
`Second Quarter 2020
`   
`   
`94.6  to $
`20%to
`1.0  to $
`(0.02) to $
` 
`
`   
` 
`  $
` 
`  $
`96.2 
`22% 
`2.0 
`  $
`0.00 
`  $
`50.7 
`   
`
` 
` 
`Full-Year 2020
`387.0  to $
`407.0 
`14%to
`20%
`388.0  to $
`395.0 
`19%to
`21%
`(3.0) to $
`(1.0)
`(0.19) to $
`(0.15)
` 
` 
`51.0  
`
`The guidance provided above is forward-looking in nature. Actual results may dier materially. See the
`cautionary note regarding “Forward-Looking Statements” below. Guidance for the second quarter and
`full-year 2020 includes the anticipated contribution from the acquisition of DivvyCloud as of May 1,
`2020. Guidance for the second quarter and full-year 2020 does not include any potential impact of
`foreign exchange gains or losses. The weighted average shares outstanding for the second quarter and
`full-year 2020 represent basic shares outstanding given our projected non-GAAP net loss. In addition,
`uctuations in Rapid7’s quarterly operating results may be particularly pronounced in the current
`economic environment due to the uncertainty caused by, and the unprecedented nature of, the current
`COVID-19 pandemic, whose severity, duration and ultimate impact is dicult to predict at this time. 
`The guidance above also assumes that there are no new or recurrent shocks to the global economy,
`that the quarter ended June 30, 2020 will see the highest negative impact to economic growth and that
`it will be a 12-to-24 month economic recovery period. The primary set of drivers of Rapid7’s actual
`nancial performance relative to the ranges provided will be a function of how long the economy
`remains closed and at what pace it recovers when it reopens. 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 specicity, this guidance is inherently subject to signicant business,
`economic and competitive uncertainties and contingencies, many of which are beyond Rapid7's control
`and are based upon specic assumptions with respect to future business decisions or economic
`conditions, some of which may change. Rapid7 undertakes no obligation to update guidance after this
`date.
`
`Non-GAAP guidance excludes estimates for stock-based compensation expense, amortization of
`acquired intangible assets, amortization of debt discount and issuance costs, and certain other items.
`Rapid7 has provided a reconciliation of historical non-GAAP nancial measures to the most comparable
`GAAP measures in the nancial statement tables included in this press release. A reconciliation of non-
`GAAP guidance measures to the most comparable GAAP measures is not available on a forward-looking
`basis without unreasonable eorts due to the high variability, complexity and low visibility with
`respect to the charges excluded from these non-GAAP measures.
`
`Conference Call and Webcast Information
`
`https://investors.rapid7.com/news-releases/news-release-details/rapid7-announces-first-quarter-2020-financial-results
`
`4/14
`
`

`

`6/3/2020
`Rapid7 Announces First Quarter 2020 Financial Results | Rapid7 Inc
`Case 1:18-cv-01519-MN Document 144-8 Filed 06/04/20 Page 6 of 15 PageID #: 6261
`Rapid7 will host a conference call today, May 7, 2020, to discuss its results at 4:30 p.m. Eastern Time.
`The call will be accessible by telephone at 877-357-4230 (domestic) or 629-228-0721 (international). The
`call will also be available live via webcast on Rapid7's website at https://investors.rapid7.com. A
`telephone replay of the conference call will be available at 855-859-2056 or 404-537-3406 (access code
`3408937) until May 15, 2020. A webcast replay will be available at https://investors.rapid7.com.
`
`About Rapid7
`
`Rapid7 (Nasdaq: RPD) is advancing security with visibility, analytics, and automation delivered through
`our Insight cloud. Our solutions simplify the complex, allowing security teams to work more eectively
`with IT and development to reduce vulnerabilities, monitor for malicious behavior, investigate and shut
`down attacks, and automate routine tasks. Over 9,000 customers rely on Rapid7 technology, services,
`and research to improve security outcomes and securely advance their organizations. For more
`information, visit our website, check out our blog, or follow us on Twitter.
`
`Non-GAAP Financial Measures and Key Metrics
`
`To supplement our consolidated nancial statements, which are prepared and presented in accordance
`with generally accepted accounting principles in the United States, or GAAP, we provide investors with
`certain non-GAAP nancial measures and key metrics, which we believe are helpful to our investors. We
`use these non-GAAP nancial measures and key metrics for nancial and operational decision-making
`purposes and as a means to evaluate period-to-period comparisons. We also use certain non-GAAP
`nancial measures as performance measures under our executive bonus plan. We believe that these
`non-GAAP nancial measures and key metrics provide useful information about our operating results,
`enhance the overall understanding of past nancial performance and future prospects and allow for
`greater transparency with respect to metrics used by our management in its nancial and operational
`decision-making.
`
`While our non-GAAP nancial measures are an important tool for nancial and operational decision-
`making and for evaluating our own operating results over dierent periods of time, you should review
`the reconciliation of our non-GAAP nancial measures to the comparable GAAP nancial measures
`included below, and not rely on any single nancial measure to evaluate our business.
`
`Non-GAAP Financial Measures
`We disclose the following non-GAAP nancial measures: non-GAAP gross prot, non-GAAP income
`(loss) from operations, non-GAAP net income (loss), non-GAAP net income (loss) per share and adjusted
`EBITDA. We also disclose non-GAAP gross margin and non-GAAP operating margin derived from these
`nancial measures.
`
`https://investors.rapid7.com/news-releases/news-release-details/rapid7-announces-first-quarter-2020-financial-results
`
`5/14
`
`

`

`6/3/2020
`Rapid7 Announces First Quarter 2020 Financial Results | Rapid7 Inc
`Case 1:18-cv-01519-MN Document 144-8 Filed 06/04/20 Page 7 of 15 PageID #: 6262
`We dene non-GAAP gross prot, non-GAAP income (loss) from operations, non-GAAP net income
`(loss) and non-GAAP net income (loss) per share as the respective GAAP balances excluding the eect
`of stock-based compensation expense, amortization of acquired intangible assets, amortization of debt
`discount and issuance costs and certain other items such as acquisition-related expenses and
`litigation-related expenses. Non-GAAP net income (loss) per basic and dilutive share is calculated as
`non-GAAP net income (loss) divided by the weighted average shares used to compute net income (loss)
`per share, with the number of weighted average shares decreased to reect the anti-dilutive impact of
`the capped call transactions entered into in connection with the 1.25% convertible senior note issued in
`August 2018.
`
`We believe these non-GAAP nancial measures are useful to investors in assessing our operating
`performance due to the following factors:
`
`Stock-based compensation expense. We exclude stock-based compensation expense because of
`varying available valuation methodologies, subjective assumptions and the variety of equity
`instruments that can impact our non-cash expense. We believe that providing non-GAAP nancial
`measures that exclude stock-based compensation expense allows for more meaningful comparisons
`between our operating results from period to period.
`
`Amortization of acquired intangible assets. We believe that excluding the impact of amortization of
`acquired intangible assets allows for more meaningful comparisons between operating results from
`period to period as the intangible assets are valued at the time of acquisition and are amortized over
`several years after the acquisition.
`
`Amortization of debt discount and issuance costs. In August 2018, we issued $230 million of convertible
`senior notes, which bear interest at an annual xed rate of 1.25%. The imputed interest rate of the
`convertible senior notes was approximately 7.36%. This is a result of the debt discount recorded for the
`conversion feature that is required to be separately accounted for as equity, and debt issuance costs,
`which reduce the carrying value of the convertible debt instrument. The debt discount is amortized as
`interest expense together with the issuance costs of the debt. The expense for the amortization of debt
`discount and debt issuance costs is a non-cash item, and we believe the exclusion of this interest
`expense provides a more useful comparison of our operational performance in dierent periods.
`
`Litigation-related expenses. We exclude certain litigation-related expenses consisting of professional
`fees and related costs incurred by us related to signicant litigation outside the ordinary course of
`business. We believe it is useful to exclude such expenses because we do not consider such amounts to
`be part of our ongoing operations.
`
`Acquisition-related expenses. We exclude acquisition-related expenses as costs that are unrelated to
`the current operations and neither are comparable to the prior period nor predictive of future results.
`
`https://investors.rapid7.com/news-releases/news-release-details/rapid7-announces-first-quarter-2020-financial-results
`
`6/14
`
`

`

`6/3/2020
`Rapid7 Announces First Quarter 2020 Financial Results | Rapid7 Inc
`Case 1:18-cv-01519-MN Document 144-8 Filed 06/04/20 Page 8 of 15 PageID #: 6263
`Anti-dilutive impact of capped call transaction. In connection with the issuance of our convertible
`senior notes, we entered into capped call transactions to oset potential dilution from the embedded
`conversion feature in the notes. Although we cannot reect the anti-dilutive impact of the capped call
`transactions under GAAP, we do reect the anti-dilutive impact of the capped call transactions in non-
`GAAP net income (loss) per basic and diluted share to provide investors with useful information in
`evaluating the nancial performance of the company on a per share basis.
`
`Adjusted EBITDA (non-GAAP).  Adjusted EBITDA is a non-GAAP measure that we dene as net loss
`before (1) interest income, (2) interest expense, (3) other income (expense), net, (4) provision for income
`taxes, (5) depreciation expense, (6) amortization of intangible assets, (7) stock-based compensation
`expense, and (8) certain other items.  We believe that the use of adjusted EBITDA is useful to investors
`and other users of our nancial statements in evaluating our operating performance because it provides
`them with an additional tool to compare business performance across companies and across periods.
`Adjusted EBITDA should not be considered as a substitute for other measures of nancial performance
`reported in accordance with GAAP. There are limitations to using this non-GAAP nancial measure,
`including that other companies may calculate this measure dierently than we do, that it does not
`reect our capital expenditures or future requirements for capital expenditures and that it does not
`reect changes in, or cash requirements for, our working capital and excludes some items that are cash
`based.
`
`Our non-GAAP nancial measures may not provide information that is directly comparable to that
`provided by other companies in our industry, as other companies in our industry may calculate non-
`GAAP nancial results dierently, particularly related to non-recurring, unusual items. In addition, there
`are limitations in using non-GAAP nancial measures because the non-GAAP nancial measures are not
`prepared in accordance with GAAP, may be dierent from non-GAAP nancial measures used by other
`companies and exclude expenses that may have a material impact upon our reported nancial results.
`Further, stock-based compensation expense has been and will continue to be for the foreseeable future
`a signicant recurring expense in our business and an important part of the compensation provided to
`our employees.
`
`Key Metrics
`Annualized Recurring Revenue (ARR). ARR is dened as the annual value of all recurring revenue related
`contracts in place at the end of the period. ARR should be viewed independently of revenue and
`deferred revenue as ARR is an operating metric and is not intended to be combined with or replace
`these items. ARR is not a forecast of future revenue and can be impacted by contract start and end
`dates and renewal rates, and does not include revenue reported as perpetual license or professional
`services revenue in our consolidated statement of operations.
`
`https://investors.rapid7.com/news-releases/news-release-details/rapid7-announces-first-quarter-2020-financial-results
`
`7/14
`
`

`

`6/3/2020
`Rapid7 Announces First Quarter 2020 Financial Results | Rapid7 Inc
`Case 1:18-cv-01519-MN Document 144-8 Filed 06/04/20 Page 9 of 15 PageID #: 6264
`Number of Customers. We dene a customer as any entity that has (1) an active Rapid7 contract or a
`contract that expired within 90 days or less of the applicable measurement date; and for Logentries
`products, those customers with a contract value equal to or greater than $2,400 per year, or
`(2) purchased Rapid7 professional services within the 12 months preceding the applicable measurement
`date.
`
`ARR per Customer. We dene ARR per customer as ARR divided by the number of customers at the end
`of the period.
`
`Recurring Revenue. We dene recurring revenue as revenue from term software licenses, content
`subscriptions, managed services, cloud-based subscriptions and maintenance and support.
`
`Renewal Rate. We calculate our renewal rate by dividing the dollar value of renewed customer
`agreements, including upsells and cross-sells of additional products, but excluding professional
`services, in a trailing 12-month period by the dollar value of the corresponding customer agreements.
`
`Cautionary Language Concerning Forward-Looking Statements
`
`This press release includes forward-looking statements within the meaning of the Private Securities
`Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, the
`statements regarding our nancial guidance for the second quarter and full year 2020, the assumptions
`underlying such guidance and the timing of global economic recovery, the impact of the DivvyCloud
`acquisition on our products, strategy and future results of operations, and the anticipated impact of
`COVID-19 on our guidance, business, nancial condition and results of operations. Our use of the words
`“anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “will” and similar expressions are intended to
`identify forward-looking statements. 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 dier materially from future results expressed or implied by
`the forward-looking statements. Risks that could cause or contribute to such dierences include, but
`are not limited to, risks arising from the ongoing COVID-19 pandemic, uctuations in our quarterly
`results, failure to meet our publicly announced guidance or other expectations about our business, our
`rapid growth and ability to sustain our revenue growth rate, the ability of our products and professional
`services to correctly detect vulnerabilities, our customers renewal of their subscriptions with us,
`competition in the markets in which we operate, market growth, our ability to innovate and manage
`our growth, our sales cycles, our ability to integrate acquired companies, including DivvyCloud, our
`ability to operate in compliance with applicable laws as well as other risks and uncertainties set forth in
`the “Risk Factors” section of our most recent Annual Report on Form 10-K led with the Securities and
`Exchange Commission (the “SEC”) on February 28, 2020, in the Current Report on Form 8-K led with
`the SEC on April 28, 2020 and in the subsequent reports that we le with the Securities and Exchange
`
`https://investors.rapid7.com/news-releases/news-release-details/rapid7-announces-first-quarter-2020-financial-results
`
`8/14
`
`

`

`6/3/2020
`Rapid7 Announces First Quarter 2020 Financial Results | Rapid7 Inc
`Case 1:18-cv-01519-MN Document 144-8 Filed 06/04/20 Page 10 of 15 PageID #: 6265
`Commission. 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 dier materially from those expressed in any forward-looking statements
`we may make. Except as required by law, we undertake no obligation to update any forward-looking
`statements to reect events or circumstances after the date of such statements. You should, therefore,
`not rely on these forward-looking statements as representing our views as of any date subsequent to
`the date of this press release.
`
`Investor contact:
`
`Sunil Shah
`Vice President, Investor Relations
`investors@rapid7.com
`(857) 990-4074
`
`Press contact:
`
`Caitlin Doherty
`press@rapid7.com
`(857) 990-4240
`
`RAPID7, INC.    
`Consolidated Balance Sheets (Unaudited)     
`(in thousands)    
`
` 
`Assets
`Current assets:
`Cash and cash equivalents
`Short-term investments
`Accounts receivable, net
`Deferred contract acquisition and fulfillment costs, current portion
`Prepaid expenses and other current assets
`Total current assets
`Long-term investments
`Property and equipment, net
`Operating lease right-of-use assets
`Deferred contract acquisition and fulfillment costs, non-current portion
`Goodwill
`Intangible assets, net
`Other assets
`Total assets
`
` 
` 
`$
`
`$
`
`March 31,
`2020
`
`December 31,
`2019
`
` 
`   
`   
`204,434    $
`36,384   
`64,388   
`17,486   
`19,624   
`342,316   
`12,804   
`50,075   
`62,942   
`34,289   
`97,866   
`27,867   
`5,518   
`633,677    $
`
`123,413 
`116,158 
`87,927 
`17,047 
`20,051 
`364,596 
`22,887 
`50,670 
`60,984 
`34,213 
`97,866 
`28,561 
`5,136 
`664,913 
`
`https://investors.rapid7.com/news-releases/news-release-details/rapid7-announces-first-quarter-2020-financial-results
`
`9/14
`
`

`

`6/3/2020
`Rapid7 Announces First Quarter 2020 Financial Results | Rapid7 Inc
`Case 1:18-cv-01519-MN Document 144-8 Filed 06/04/20 Page 11 of 15 PageID #: 6266
`Liabilities and Stockholders’ Equity
` 
`   
`Current liabilities:
` 
`   
`$
`10,062    $
`Accounts payable
`26,486   
`Accrued expenses
`8,866   
`Operating lease liabilities, current portion
`219,432   
`Deferred revenue, current portion
`35   
`Other current liabilities
`264,881   
`Total current liabilities
`187,944   
`Convertible senior notes, net
`71,586   
`Operating lease liabilities, non-current portion
`31,641   
`Deferred revenue, non-current portion
`1,325   
`Other long-term liabilities
`557,377   
`Total liabilities
`Stockholders’ equity:
`   
`504   
`Common stock
`(4,764)  
`Treasury stock
`621,992   
`Additional paid-in-capital
`(78)  
`Accumulated other comprehensive (loss) income
`(541,354)  
`Accumulated deficit
`76,300   
`Total stockholders’ equity
`633,677    $
`Total liabilities and stockholders’ equity
`
`6,836 
`41,021 
`7,179 
`231,518 
`119 
`286,673 
`185,200 
`72,294 
`36,226 
`1,352 
`581,745 
`
`499 
`(4,764)
`605,650 
`213 
`(518,430)
`83,168 
`664,913 
`
` 
`
`$
`
`RAPID7, INC.
`Consolidated Statements of Operations (Unaudited)
`(in thousands, except share and per share data)
`
` 
` 
`Revenue:
`Products
`Professional services
`Total revenue
`Cost of revenue:
`Products
`Professional services
`Total cost of revenue
`Total gross profit
`Operating expenses:
`Research and development
`Sales and marketing
`General and administrative
`Total operating expenses
`Loss from operations
`Other income (expense), net:
`Interest income
`Interest expense
`
` 
`$
`
` 
`
` 
`
` 
`
`2020
`
`2019
`
`Three Months Ended March
`31,
` 
`   
`87,549    $
`6,791   
`94,340   
`   
`21,256   
`6,458   
`27,714   
`66,626   
`   
`24,202   
`48,145   
`14,099   
`86,446   
`(19,820)  
`   
`1,048   
`(3,462)  
`
`65,845 
`7,340 
`73,185 
`
`14,369 
`5,604 
`19,973 
`53,212 
`
`17,865 
`35,138 
`9,953 
`62,956 
`(9,744)
`
`1,731 
`(3,229)
`
`https://investors.rapid7.com/news-releases/news-release-details/rapid7-announces-first-quarter-2020-financial-results
`
`10/14
`
`

`

`6/3/2020
`Rapid7 Announces First Quarter 2020 Financial Results | Rapid7 Inc
`Case 1:18-cv-01519-MN Document 144-8 Filed 06/04/20 Page 12 of 15 PageID #: 6267
`(447)  
`Other income (expense), net
`Loss before income taxes
`(22,681)  
`243   
`Provision for income taxes
`Net loss
`(22,924)   $
`Net loss per share, basic and diluted
`(0.46)   $
`Weighted-average common shares outstanding, basic and diluted
`50,127,310   
`
`(206)
`(11,448)
`225 
`(11,673)
`(0.24)
`47,827,939 
`
`$
`$
`
`RAPID7, INC.
`Consolidated Statements of Cash Flows (Unaudited)
`(in thousands)
`
` 
` 
`Cash ows from operating activities:
`Net loss
`Adjustments to reconcile net loss to net cash used in operating activities:
`Depreciation and amortization
`Amortization of debt discount and issuance costs
`Stock-based compensation expense
`Provision for doubtful accounts
`Foreign currency re-measurement loss
`Other non-cash (income) expense
`Changes in operating assets and liabilities:
`Accounts receivable
`Deferred contract acquisition and fulfillment costs
`Prepaid expenses and other assets
`Accounts payable
`Accrued expenses
`Deferred revenue
`Other liabilities
`Net cash used in operating activities.
`Cash ows from investing activities:
`Purchases of property and equipment
`Capitalization of internal-use software costs
`Purchases of investments
`Sales/maturities of investments
`Net cash provided by (used in) investing activities
`Cash ows from nancing activities:
`
`Taxes paid related to net share settlement of equity awards
`Proceeds from employee stock purchase plan
`Proceeds from stock option exercises
`Net cash provided by financing activities
`Effect of exchange rate changes on cash, cash equivalents and restricted cash
`Net increase (decrease) in cash, cash equivalents and restricted cash
`Cash, cash equivalents and restricted cash, beginning of period
`Cash, cash equivalents and restricted cash, end of period
`
` 
`$
` 
`
` 
`
` 
`
` 
`
`$
`
`2020
`
`2019
`
`(11,673)
`
`3,427 
`2,510 
`8,634 
`437 
`249 
`(722)
`
`Three Months Ended March
`31,
` 
`   
`(22,924)   $
`   
`4,843   
`2,743   
`13,347   
`527   
`447   
`(138)  
`   
`22,608   
`(516)  
`135   
`4,010   
`(14,563)  
`(16,671)  
`(1,063)  
`(7,215)  
`   
`(2,756)  
`(1,474)  
`(24,272)  
`113,924   
`85,422   
`   
`(1,533)  
`3,346   
`1,561   
`3,374   
`(560)  
`81,021   
`123,413   
`204,434    $
`
`14,729 
`(1,094)
`(5,940)
`66 
`(13,690)
`(12,104)
`1,605 
`(13,566)
`
`(8,463)
`(1,601)
`(63,029)
`72,738 
`(355)
`
`(979)
`2,634 
`2,718 
`4,373 
`(148)
`(9,696)
`99,565 
`89,869 
`
`https://investors.rapid7.com/news-releases/news-release-details/rapid7-announces-first-quarter-2020-financial-results
`
`11/14
`
`

`

`6/3/2020
`
`Rapid7 Announces First Quarter 2020 Financial Results | Rapid7 Inc
`Case 1:18-cv-01519-MN Document 144-8 Filed 06/04/20 Page 13 of 15 PageID #: 6268
`RAPID7, INC.    
`GAAP to Non-GAAP Reconciliation (Unaudited)    
`(in thousands, except share and per share data)   
`
` 
` 
`GAAP gross prot
`
`Add: Stock-based compensation expense
`1
`Add: Amortization of acquired intangible assets
`Non-GAAP gross prot
`
`2
`
`Non-GAAP gross margin
`
`GAAP gross profit - Products
`Add: Stock-based compensation expense
`Add: Amortization of acquired intangible assets
`Non-GAAP gross profit - Products
`Non-GAAP gross margin - Products
`
` 
`
` 
`
`GAAP gross profit - Professional services
`Add: Stock-based compensation expense
`Non-GAAP gross profit - Professional services
`Non-GAAP gross margin - Professional services
`
` 
`GAAP loss from operations
`
`Add: Stock-based compensation expense
`1
`Add: Amortization of acquired intangible assets
`Add: Acquisition-related expenses
`3
`Add: Litigation-related expenses
`4
`Non-GAAP (loss) income from operations
` 
`GAAP net loss
`
`2
`
`2
`
`Add: Stock-based compensation expense
`1
`Add: Amortization of acquired intangible assets
`Add: Acquisition-related expenses
`3
`Add: Litigation-related expenses
`4
`Add: Amortization of debt discount and issuance costs
`Non-GAAP net (loss) income
` 
`Reconciliation of net (loss) income per share, basic
`GAAP net loss per share, basic
`
`Non-GAAP adjustments to net loss
`Non-GAAP net (loss) income per share, basic
` 
`Reconciliation of net (loss) income per share, diluted
`GAAP net loss per share, diluted
`
`Non-GAAP adjustments to net loss
`Non-GAAP net (loss) income per share, diluted
`
`$
`
`$
`
` 
`$
`
`$
`
` 
`$
`
`$
`
` 
`$
`
`$
` 
`$
`
`$
` 
` 
`$
`
`$
` 
` 
`$
`
`Three Months Ended March 31,
`2020
`2019
` 
`66,626 
`  $
`53,212 
`931 
` 
`573 
`1,658 
` 
`1,358 
`69,215 
`  $
`55,143 
`73.4% 
`75.3%
`   
`  $
`66,293 
` 
`573 
` 
`1,658 
`  $
`68,524 
`78.3% 
`   
`  $
`333 
` 
`358 
`  $
`691 
`10.2% 
`   
`(19,820)   $
`13,347 
` 
`1,690 
` 
`307 
` 
`543 
` 
`(3,933)   $
`   
`(22,924)   $
`13,347 
` 
`1,690 
` 
`307 
` 
`543 
` 
`2,743 
` 
`(4,294)   $
`   
`   
`(0.46)   $
`0.37 
` 
`(0.09)   $
`   
`   
`(0.46)   $
`0.37 
` 
` 
`
`51,476 
`277 
`1,358 
`53,111 
`80.7%
`
`1,736 
`296 
`2,032 
`27.7%
`
`(9,744)
`8,634 
`1,397 
`217 
`73 
`577 
`
`(11,673)
`8,634 
`1,397 
`217 
`73 
`2,510 
`1,158 
`
`(0.24)
`0.26 
`0.02 
`
`(0.24)
`0.26 
`
`https://investors.rapid7.com/news-releases/news-release-details/rapid7-announces-first-quarter-2020-financial-results
`
`12/14
`
`

`

`6/3/2020
`
` 
`Weighted average shares used in GAAP per share calculation, basic and diluted
` 
`Weighted average shares used in non-GAAP per share calculation:
`
`Basic
`Diluted
`
` 
`1
`
` Includes stock-based compensation expense as follows:
`Cost of revenue
`Research and development
`Sales and marketing
`General and administrative
`
`0.02 
`
`50,127,310 
`
`47,827,939 
`
`50,127,310 
`50,127,310 
`
`47,827,939 
`51,184,402 
`
`931 
`4,645 
`3,678 
`4,093 
`
`1,658 
`32 
`— 
`
`307 
`
`543 
`
`573 
`3,174 
`2,464 
`2,423 
`
`1,358 
`38 
`1 
`
`217 
`
`73 
`
` 
` 
`
` 
` 
`$
`
` 
` 
`$
`
` 
` 
`$
` 
` 
`$
`
`Rapid7 Announces First Quarter 2020 Financial Results | Rapid7 Inc
`Case 1:18-cv-01519-MN Document 144-8 Filed 06/04/20 Page 14 of 15 PageID #: 6269
`$
`(0