DoD tests AI models that make it easy to switch from vendors like Palantir
BOSTON - Cybersecurity firm Rapid7, Inc. (NASDAQ:RPD), a $1.46 billion market cap company with annual revenues of $849 million and impressive 71% gross margins, announced Monday that its InsightGovCloud Platform has received Federal Risk and Authorization Management Program (FedRAMP) Authorization at the Moderate Impact Level 2, enabling the company to provide its cloud-based security services to U.S. federal agencies. According to InvestingPro analysis, the company appears undervalued based on its Fair Value estimates.
The authorization allows government agencies to deploy Rapid7’s solutions across their environments to manage threat detection and automated response capabilities in both cloud and on-premises systems.
"For federal agencies navigating increasingly complex and constantly-evolving security environments, working with a security platform that meets the highest standards of security, reliability, and compliance is critical," said Pete Rubio, senior vice president of platform and engineering at Rapid7.
The newly authorized platform includes vulnerability management, Cloud Native Application Protection Platform (CNAPP), and Security Orchestration, Automation and Response (SOAR) solutions. These tools are designed to help agencies comply with the Cybersecurity and Infrastructure Security Agency’s Binding Operational Directive 22-01, which requires timely identification and remediation of vulnerabilities. The company’s strong market position is supported by its robust free cash flow yield and expected net income growth this year.
Key features of the platform include dynamic asset discovery, threat-aware vulnerability prioritization, exploitability validation, real-time cloud security assessment, and streamlined remediation workflows.
Damon Cabanillas, public sector vice president of sales at Rapid7, stated that the authorization "marks a meaningful commitment to the federal agencies we support."
The FedRAMP Authorization adds to Rapid7’s existing certifications, which include SOC2 Type 2, ISO 27001, and several other security standards, according to the company’s press release statement.
In other recent news, Rapid7 reported mixed financial results for the first quarter of fiscal year 2025. The company’s Annual Recurring Revenue (ARR) fell short of expectations, but its revenue and profitability exceeded forecasts. This performance was driven by the strength of its Threat Detection and Response division, although it was somewhat offset by weaker results in the Vulnerability Management segment. In response to these results, Stifel adjusted its price target for Rapid7 to $29 while maintaining a Hold rating, citing macroeconomic challenges and vulnerabilities within the VM sector. Similarly, Truist Securities lowered its price target to $28, also maintaining a Hold position, and noted deferred deals in the Detection and Response sector. Meanwhile, Canaccord Genuity reduced its price target to $39 but reaffirmed a Buy rating, highlighting Rapid7’s progress in enhancing its sales structure and platform capabilities. Rapid7 also announced the launch of Active Patching, an automated patching solution, and the availability of its AI security capabilities on the AWS Marketplace. These developments reflect the company’s ongoing efforts to innovate and adapt to market demands.
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