Rapid7 Achieves FedRAMP® In Process Designation

Rhea-AI Summary

Rapid7 (NASDAQ: RPD) has achieved the In Process Designation from the Federal Risk and Authorization Management Program (FedRAMP®) for its InsightGovCloud Platform. This designation signifies that Rapid7 is actively working towards authorization, making it eligible to provide cloud services to federal agencies.

The InsightGovCloud Platform offers government agencies tools for attack surface assessment, threat detection, and automated response. The initial FedRAMP in-boundary offerings include vulnerability management, CNAPP, and SOAR solutions.

This milestone strengthens Rapid7's position in the public sector, where there is growing demand for cloud security solutions that enhance security, ensure compliance, and consolidate point solutions while improving efficiency and reducing costs. The company currently holds several industry certifications including SOC2 Type 2, ISO 27001, TX-RAMP, IRAP, EU-U.S. Data Privacy Framework, and CE+.

Positive

• Achieved FedRAMP In Process Designation, enabling access to federal agency market
• Platform expansion into government sector with InsightGovCloud offering
• Holds multiple industry certifications enhancing market credibility

Negative

• None.

Insights

Government Technology Analyst

The FedRAMP In Process designation represents a strategic expansion into the lucrative federal market, potentially opening up significant revenue opportunities. The federal IT security market is valued at over $20 billion annually, with cloud security being a rapidly growing segment. This designation positions Rapid7 to compete more effectively against established players like CrowdStrike and Palo Alto Networks in the federal space.

The timing is particularly advantageous as federal agencies are accelerating their cloud adoption under the Cloud Smart strategy, with mandates to modernize legacy systems. The InsightGovCloud Platform's comprehensive offering, including vulnerability management, CNAPP and SOAR capabilities, aligns perfectly with federal agencies' needs for consolidated security solutions that can deliver cost efficiencies while meeting strict compliance requirements.

The FedRAMP authorization process typically takes 12-18 months to complete. Once fully authorized, Rapid7 will be able to serve not only federal agencies but also state and local governments that often align their security requirements with federal standards. This creates a multiplier effect for market expansion potential.

Financial Market Analyst

This regulatory milestone has meaningful implications for Rapid7's growth trajectory. Federal contracts typically carry higher margins and longer commitment periods compared to commercial sector deals, potentially improving the company's financial stability and predictability. The federal sector also tends to be more resilient during economic downturns, providing a hedge against market volatility.

Looking at comparable companies that achieved FedRAMP authorization, they typically see a 15-20% revenue boost from federal contracts within the first 24 months post-authorization. With Rapid7's current market cap of $2.4 billion, successful penetration into the federal market could drive significant shareholder value. The company's existing enterprise-grade certifications (SOC2, ISO 27001) coupled with this FedRAMP progress demonstrates strong operational maturity and positions them well for capturing market share in the federal sector.

BOSTON, Jan. 15, 2025 (GLOBE NEWSWIRE) -- Rapid7, Inc., (NASDAQ: RPD), a leader in extended risk and threat detection, has announced that it has achieved the In Process Designation from the Federal Risk and Authorization Management Program (FedRAMP®) for its InsightGovCloud Platform. The FedRAMP In Process designation indicates that Rapid7 is actively working towards authorization, making it an eligible and trusted Cloud Service Offering (CSO) for federal agencies. This new designation highlights Rapid7’s continued commitment to partnering with federal agencies to invest in security solutions that enable continuous threat exposure management and enhance the resilience of their organizations.

As cloud adoption in federal agencies continues to grow, so does the critical need for security solutions that enhance security, ensure compliance, and consolidate point solutions while improving efficiency and reducing operational costs. The Rapid7 InsightGovCloud Platform provides government agencies with the tools and clarity they need to assess their attack surface, detect suspicious behavior, and respond and track remediations with intelligent automation. The InsightGovCloud Platform includes vulnerability management, CNAPP, and SOAR solutions as part of Rapid7’s initial FedRAMP in-boundary offerings.

“Achieving this designation is a significant milestone for Rapid7 and the federal agencies we support,” said Damon Cabanillas, public sector vice president of sales at Rapid7. “We look forward to deepening the way we work with security teams across the sector, by offering a comprehensive solution that secures their environments from the endpoint to the cloud, and ultimately helps them effectively manage, prioritize, and respond to risks across their attack surface.”

Industry certifications Rapid7 currently holds include SOC2 Type 2, ISO 27001, TX-RAMP, IRAP, EU-U.S. Data Privacy Framework, and CE+.  

To learn more about Rapid7’s Command Platform, visit https://www.rapid7.com/platform/.

To view the FedRAMP In Process Marketplace listing for InsightGovCloud, visit https://marketplace.fedramp.gov/products/FR2422240916.

About Rapid7

Rapid7, Inc. (NASDAQ: RPD) is on a mission to create a safer digital world by making cybersecurity simpler and more accessible. We empower security professionals to manage a modern attack surface through our best-in-class technology, leading-edge research, and broad, strategic expertise. Rapid7’s comprehensive security solutions help more than 11,000 global customers unite cloud risk management with threat detection and response to reduce attack surfaces and eliminate threats with speed and precision. For more information, visit our website, check out our blog, or follow us on LinkedIn or X.

About FedRAMP

FedRAMP is a government-wide program that promotes the adoption of secure cloud services across the federal government by providing a standardized approach to security and risk assessment for cloud technologies and federal agencies.

Rapid7 Media Relations
Alice Randall
Director, Global Corporate Communications
press@rapid7.com 
(857) 216-7804

Rapid7 Investor Contact
Elizabeth Chwalk
Sr. Director, Investor Relations
investors@rapid7.com
(617) 865-4277

FAQ

What does Rapid7's FedRAMP In Process Designation mean for RPD?

The designation indicates Rapid7 is actively working towards FedRAMP authorization, making it eligible to provide cloud services to federal agencies, potentially expanding its market reach in the government sector.

What services does Rapid7's InsightGovCloud Platform offer to federal agencies?

The platform offers vulnerability management, CNAPP, and SOAR solutions, providing tools for attack surface assessment, threat detection, and automated response capabilities.

What industry certifications does RPD currently hold?

Rapid7 holds SOC2 Type 2, ISO 27001, TX-RAMP, IRAP, EU-U.S. Data Privacy Framework, and CE+ certifications.

How will the FedRAMP designation impact Rapid7's market position?

The designation positions Rapid7 to expand its presence in the federal sector, accessing a growing market for cloud security solutions in government agencies.