“We think this is going to accelerate customer usage of VM because with the attach strategy, what it really allows us to do was we get a larger ARR from customers faster.”

In context

“Corey Thomas (CEO): Yes. So I will give an extended view versus a precise view about the next three to four months just because this will be a continuing train of thought. There's a couple of concepts to separate. I'm going to separate out sort of like revenue and attribution from customer usage. We think this is going to accelerate customer usage of VM because with the attach strategy, what it really allows us to do was we get a larger ARR from customers faster. And so it accelerates the consolidation of the share of wallet that Rapid7 has. The customer gets a net better deal because they're spending a larger amount of money with us. Therefore, they get more capability, more coverage, faster and broader. It's a win for Rapid7 as part of the consolidation, and it's a great win for the customer overall. Now what that means is from a revenue perspective and from an ARR perspective, the attribution that goes to VM continues to shrink and shrink at a faster rate. But the opposite is true from a usage perspective. We expect that the usage of our overall technologies to accelerate, and we expect more people to actually be using more VM. And I get the case study on the call that the customer attached themselves, and that was one of our programs. But as they attached, they covered 100% of their environment for VM. And as you know, VM typically still starts off with a smaller percentage of the environment and grows over time but rarely gets to 100% of the environment. So part of what we actually get is customers get the visibility at the right price for the entire environment. So you want to net it out is that our ARR customer should increase over the medium-term and long-term at a faster rate. Our share of wallet should actually increase. That should drive customer economics to be a positive trend on profitability because our customer economics improve. For customers, that allows them to actually get better efficacy and get a better deal because they consolidated their spend overall. Because they're getting better efficacy and consolidated their spend, they're actually using the product higher. So our usage share of the market should actually increase.”