Rapid7 Inc RPD

Rapid7 Is a Small Cybersecurity Firm Swimming Against the Current of Vendor Consolidation

Rapid7 is a small vendor in security operations and threat detection, which we view as key components of the cybersecurity stack, and which stand to gain wallet share of customers' spending as firms digitize their workflows. While secular tailwinds blow in Rapid7’s favor, we are wary of the firm’s fierce competition, especially against larger, more capitalized competitors, and exposure to macro swings as well as lackluster execution as of late.