Business description of RAPID7-INC from last 10-k form

Our operations and financial results are subject to various risks and uncertainties including those described below. You should consider carefully the risks and uncertainties described below, in addition to other information contained in this Annual Report on Form 10-K as well as our other public filings with the Securities and Exchange Commission, including our consolidated financial statements and related notes. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties that we are unaware of, or that we currently believe are not material, may also become important factors that adversely affect our business. If any of the following risks or others not specified below materialize, our business, financial condition and results of operations could be materially adversely affected. In that case, the trading price of our common stock could decline.

Risks Related to Our Business and Industry

We are a rapidly growing company, which makes it difficult to evaluate our future prospects and may increase the risk that we will not be successful.

We are a rapidly growing company. Our ability to forecast our future operating results is subject to a number of uncertainties, including our ability to plan for and model future growth. We have encountered and will continue to encounter risks and uncertainties frequently experienced by growing companies in rapidly evolving industries. If our assumptions regarding these uncertainties, which we use to plan our business, are incorrect or change in reaction to changes in our markets, or if we do not address these risks successfully, our operating and financial results could differ materially from our expectations, our business could suffer and the trading price of our common stock may decline.

22

     Year Ended December 31,  
     2015      2014      2013  

Expected term (in years)

     6.3         6.3         6.3   

Expected volatility

     42 – 48%         47 – 49%         50 – 52%   

Risk-free interest rate

     1.5 – 1.8%         1.5 – 1.7%         0.9 – 1.7%   

Expected dividend yield

                       

Grant date fair value per share

   $   4.39 – 10.09       $   3.74 – 4.88       $   2.14 – 4.65   
    Year Ended December 31,  
                2015                             2014                             2013              

Options to purchase common stock

    4,246,525        3,561,304        3,202,335   

Restricted stock

    1,149,257        4,185        68,781   

Warrants to purchase common stock

    100,000        200,000        200,000   

Shares to be issued under ESPP

    114,271                 

Redeemable convertible preferred stock

           16,382,615        13,696,099   
 

 

 

   

 

 

   

 

 

 

Total

    5,610,053        20,148,104        17,167,215   
 

 

 

   

 

 

   

 

 

 
    Year Ended December 31,  
                2015                             2014                             2013              
    (in thousands)  

North America

    $              96,416        $            67,390        $            53,809   

Other

    14,110        9,490        6,221   
 

 

 

   

 

 

   

 

 

 

Total

    $            110,526        $            76,880        $            60,030