Asset Manager Investing in Global Technology Sector

We're an asset manager allocating 100% of our capital into public companies and cryptocurrency assets driving disruptive innovation globally. We serve as a family office of an Asia-based HNW family whose key members have made their fortune in the technology industry and are believers in technology as the key enabler of disruptive innovation. We seek to continue the family's legacy in creating and preserving wealth through technology investing.

Our small investment team is made up of diverse professionals who researches, identifies, and executes relevant opportunities. While we are not accepting outside clients and investors at the moment, we occasionally share some of our internal investment memos, market commentaries, 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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