A Boston-based cybersecurity company filed paperwork yesterday for an initial public offering, the first tech company in the Boston area to announce plans to go public this year.
Rapid7 said it is seeking to raise $80 million and it has more than 3,900 customers, including Amazon, Comcast, and IBM in its Securities and Exchange Commission filing.
Founded 15 years ago, Rapid7 says it helps companies reduce the risk of a data breach by understanding the behaviors and methods of potential attackers and helping companies easily identify vulnerabilities.
The company has seen strong revenue growth recently, including $23.6 million in the first quarter of this year, an increase of 41 percent over the same period last year.
Revenue grew 28 percent from 2013 to 2014.
Still, the company is not profitable. Rapid7 lost $7.9 million in the first quarter of this year, and $32.6 million in 2014. In the SEC filing, Rapid7 says the losses are due to continued investment in the company’s growth.
The public market has been friendly to cybersecurity IPOs, said Kathleen Smith of Renaissance Capital, which manages IPO-focused ETFs.
“Certainly investors are very interested in these companies,” Smith said. “They’ve done well … trading has been very strong.”
The most recent cybersecurity company to go public — CyberArk, a Newton-based company — popped 87 percent on the first day of trading in September, and shares are up nearly 300 percent from the IPO price, Smith said.
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