Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Market Information
Our common stock is listed on the Nasdaq Global Market under the symbol “RPD."
As of December 31, 2020, there were 44 holders of record of our common stock, including Cede & Co., a nominee for The Depository Trust Company (DTC), which holds shares of our common stock on behalf of an indeterminate number of beneficial owners. All of the shares of common stock held by brokerage firms, banks and other financial institutions as nominees for beneficial owners are deposited into participant accounts at DTC, and are considered to be held of record by Cede & Co. as one stockholder. Because many of our shares are held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of stockholders represented by these record holders.
Stock Performance Graph
The following shall not be deemed incorporated by reference into any of our other filings under the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended, except to the extent we specifically incorporate it by reference into such filings.
The following graph shows a comparison from December 31, 2015 through December 31, 2020 of the cumulative total return for an investment of $100 in our common stock, the Nasdaq Global Market and the Nasdaq Computer Index. Data for the Nasdaq Global Market and the Nasdaq Computer Index assume reinvestment of dividends.
The comparisons in the graph below are based upon historical data and are not indicative of, nor intended to forecast, future performance of our common stock.
December 31,
2015 December 31,
2016 December 31,
2017 December 31,
2018 December 31,
2019 December 31,
2020
Rapid7, Inc. $ 100.00 $ 80.44 $ 123.33 $ 205.95 $ 370.26 $ 595.90
Nasdaq Global Market Composite 100.00 97.96 125.49 118.10 153.01 238.08
Nasdaq Computer 100.00 123.67 174.80 157.40 241.96 347.26
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Recent Sales of Unregistered Securities
None.
Use of Proceeds from Initial Public Offering of Common Stock
None.
Purchase of Equity Securities by the Issuer and Affiliated Purchasers
None.
Securities Authorized for Issuance Under Equity Compensation Plans
Information about securities authorized for issuance under our equity compensation plan is incorporated herein by reference to Item 12 of Part III of this Annual Report on Form 10-K.
Item 6. Selected Financial Data.
The following selected historical financial data should be read in conjunction with Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and our consolidated financial statements and the related notes appearing in Item 8, “Financial Statements and Supplementary Data,” of this Annual Report on Form 10-K to fully understand the factors that may affect the comparability of the information presented below.
The selected consolidated financial data in this section are not intended to replace the consolidated financial statements and are qualified in their entirety by the consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K.
The following selected consolidated statements of operations data for the years ended December 31, 2020, 2019 and 2018, and the consolidated balance sheet data as of December 31, 2020 and 2019, have been derived from our audited consolidated financial statements included elsewhere in this Annual Report on Form 10-K. The consolidated statements of operations data for the year ended December 31, 2017 and 2016 and the consolidated balance sheet data as of December 31, 2018, 2017 and 2016 have been derived from our audited consolidated financial statements not included in this Annual Report on Form 10-K.
Year Ended December 31,
2020 2019 2018 2017 (1) 2016 (1)
(in thousands, except share and per share data)
Consolidated Statement of Operations Data:
Revenue:
Products $ 382,922 $ 297,897 $ 210,794 $ 163,016 $ 126,807
Professional services 28,564 29,050 33,297 37,924 30,630
Total revenue 411,486 326,947 244,091 200,940 157,437
Cost of revenue (2) :
Products 96,864 68,179 47,488 33,074 19,552
Professional services 24,653 22,967 23,595 23,836 20,173
Total cost of revenue 121,517 91,146 71,083 56,910 39,725
Operating expenses (2) :
Research and development 108,568 79,364 67,743 50,938 47,955
Sales and marketing 195,981 157,722 123,310 111,593 90,524
General and administrative 59,519 44,710 34,993 30,293 28,282
Total operating expense 364,068 281,796 226,046 192,824 166,761
Loss from operations (74,099) (45,995) (53,038) (48,794) (49,049)
Interest income 1,454 6,014 3,229 862 —
Interest expense (24,137) (13,389) (4,934) (87) 131
Other income (expense), net (81) (433) (336) 313 (109)
Loss before income taxes (96,863) (53,803) (55,079) (47,706) (49,027)
Provision for (benefit from) income taxes 1,986 42 466 (2,236) (27)
Net loss $ (98,849) $ (53,845) $ (55,545) $ (45,470) $ (49,000)
Net loss per share, basic and diluted $ (1.94) $ (1.10) $ (1.20) $ (1.06) $ (1.19)
Weighted-average common shares outstanding, basic and diluted 51,036,824 48,731,791 46,456,825 42,952,950 41,248,473
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(1) On January 1, 2018, we adopted Financial Accounting standards Board (FASB) Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASC 606) using the modified retrospective method. The consolidated statement of operations for the years ended December 31, 2017 and 2016 were not adjusted for the adoption of ASC 606.
(2) Includes stock-based compensation expense and depreciation and amortization expense as follows:
Year Ended December 31,
2020 2019 2018 2017 2016
(in thousands)
Stock-based compensation expense:
Cost of revenue $ 4,298 $ 2,580 $ 1,692 $ 1,085 $ 610
Research and development 24,423 15,670 10,822 7,205 6,054
Sales and marketing 16,826 11,883 7,569 5,756 6,607
General and administrative 18,341 10,531 7,510 5,495 4,045
Total stock-based compensation expense $ 63,888 $ 40,664 $ 27,593 $ 19,541 $ 17,316
Depreciation and amortization expense:
Cost of revenue $ 13,218 $ 9,110 $ 5,673 $ 3,597 $ 2,529
Research and development 2,844 2,083 1,336 1,077 1,080
Sales and marketing 4,779 3,971 2,783 1,986 1,842
General and administrative 1,790 1,364 1,305 968 1,274
Total depreciation and amortization expense $ 22,631 $ 16,528 $ 11,097 $ 7,628 $ 6,725
As of December 31,
2020 2019 2018 2017 (1) 2016 (1)
(in thousands)
Consolidated Balance Sheet Data:
Cash and cash equivalents $ 173,617 $ 123,413 $ 99,565 $ 51,562 $ 53,148
Working capital, excluding deferred revenue 398,286 309,441 310,646 139,604 101,527
Total assets 913,122 664,913 559,369 284,136 243,303
Total deferred revenue 309,950 267,744 248,571 224,500 169,063
Total debt 378,586 185,200 174,688 — —
Total liabilities 841,586 581,745 472,050 259,983 201,265
Total stockholders’ equity 71,536 83,168 87,319 24,153 42,038
(1) On January 1, 2018, we adopted ASC 606 using the modified retrospective method. The consolidated balance sheets as of December 31, 2017 and 2016 were not adjusted for the adoption of ASC 606.
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