Asset Manager Investing in Global Technology Sector

We're an asset management firm allocating our capital into asset classes benefiting from technological innovation and applications globally. We serve as a family office of a tech professional who has spent over a decade as an entrepreneur, operator, and venture investor across Asia and the US.

Our small team is made up of diverse investment professionals who research, identify, and execute relevant opportunities. We occasionally share some of our investment memos, insights, and analysis here.

Friday, June 5, 2020

Q2.2020 - Rapid7: Comprehensive And Top-Of-Mind Offering

  • Despite the slowdown in 2020, the comprehensive offering will reaccelerate growth to +30%.
  • Metasploit remains a hidden asset that will consistently drive long-term awareness.
  • Given the profitability and cash-flow-positive guidance in Q4 and 2021, Rapid7 is undervalued at ~7x P/S.

We maintain our overweight position in Rapid7 (RPD). In our most recent coverage about Rapid7 last December, we highlighted the company's strong growth in its VRM (Vulnerability Risk Management) business and its open-source Metasploit project, which will continue to be a long-term hidden asset as Rapid7 navigates the rapidly-changing cloud security industry. In Q1 2020, Rapid7 continued maintaining its solid growth despite the near-term slowdown due to the COVID-19 situation, and it will guide towards profitability and being cash-flows positive beyond Q4 and 2020. In our view, Rapid7 will remain as a top-of-mind choice in the cloud cybersecurity market longer term, due to its strength across all core categories and the continuing global awareness of its offerings driven by the Metasploit project.

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