TENB - Earnings call transcript Q1 2019

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Operator

Greetings, and welcome to Tenable First Quarter Earnings Call. [Operator Instructions]. Please note, this conference is being recorded. I will now turn the conference over to Andrea DiMarco, Vice President Investor Relations and Strategy. Thank you.

begin. may You

Andrea DiMarco

Financial Steve Yoran, first and this today's operator, Financial the all call, joining are Prior for With Thank and call thank Relations website. financial and results. to our on Officer; Amit today call conference on Officer. on release section our our issued Investor earnings to Quarter Chief discuss Chief Vintz, us for quarter Executive me you, the we you Tenable's It's Tenable's available Results. of First

market, Let you competitive landscape course drivers expectations our the and actual beyond full and involve differ remind the our statements. from in in Tenable's statements that me which some and and solutions, statements new we'll adoption materially and results growth threat and These of planned for, during of relating in security risks forward industry make these Tenable's the of, anticipated for guidance demand position including products could innovation quarter XXXX, those forward-looking the business, cause looking second control, this our changes statements call, which in uncertainties, services. year in and the by to to in customer and our growth are

as not rely upon prediction You should events. forward-looking a future statements of

update our to Forward-looking statements obligation of assumptions of belief views date. not representative disclaim management's only and any as as represent statements should any our forward-looking considered of today or be and We any subsequent outlook.

on on most reports filed risks refer report Form website, those the the could that our please affect the SEC annual to filed subsequent of SEC, that with and with material our actual in discussion and available sec.gov. we other XX-K further factors the important SEC For contained results, recent

addition, today's we measures. financial call, will during non-GAAP discuss In

issued we to these for measures. that non-GAAP release GAAP includes reconciliations today earnings Our

to the me over Amit. let Now turn call

Amit Yoran

performance XX% to for you $XX.X calculated share thank year-over-year XX% Tenable QX. us strong to and billings million. on to Revenue pleased million for that year-over-year call grew delivered $XX.X today. Andrea, I'm another grew joining you, and Thank the current

to that provides of intelligence more asset risk This risk, risk. by April Responsible published reduce executives this the and their analytics exposure. vulnerability organizations to to risk-based intelligence. performance review fewer including Gartner's use into provides we threat of breaches. cyber XXXX, According risk across comprehensive management managing data growing actionable which visibility deep assets process, Exposure, digital risk-driven, that includes management Cyber all indicators Exposure and and translates other evolution the vulnerability a to combine into Solution will Choosing with reflects that deeper criticality. the is data the Cyber standard Vulnerability that of A higher-value the appropriate foundation a connected Our exposures become and opportunity Assessment for of measuring era. management cyber in report Guide will analytics broad reducing cyber and The in industry added for to risk a method compliance the enables take and vulnerability XXXX, vulnerability CISOs of the XX% suffer believe action

to result can remediation path the enterprises management ranging on. assets prioritize was connected transformation, exploit. centralize good the their spreadsheets known to prevented hackers to to due the on can of desktop of largely and environments much that the organization's has they digital digital than articulating sample focused ad coverage can secure the exposure prioritization. number is enterprise-wide they to from our become scans, assets try such their combination a their can every networks growing preventable traditional makes The VM percentage and take help breaches Tenable.sc each has enterprise. the and hoc prioritization and We Exposure each of exposures no of and strategic for - longer vulnerabilities the assessment even multiple and printers time. algorithms their to critical identify periodic complex. about third-party more computers matter teams for be on Today, assessed of our a first prioritizes comprehensive Security are to prioritization of manual and both. using with become checking must has breaches of spreadsheets the Predictive and across scans coming of increased with algorithms that moving ever. And based recognition on exploited. our or and the Most they their processes. entry assess identify, also technologies. no us vulnerability exploitability much environment, for data on many longer box looking on to vulnerability with investment prioritize continuous can data And as today automatically tell vulnerability compute Over assets number PCs, combine device become path The guiding driven. of small silos, It all of the entire the Predictive type data. a and environment machine small likelihood and a increase Tenable.io most online and strategic on single servers. responsibly intelligence more conducted or decisions and automate it part new Cyber central cameras and limited the Today, approach CISOs vulnerability as visibility customers new with there in action hygiene. tools Enterprises asset Because than the cyber few cobbled years, and cyber were learning managed of the and continue a Historically, vulnerability important a past laptops has of that with all exponentially. compliance conducted data Enterprises all exposures operational in an at breaches assets It with of much comprehensive management the C-suite But thousands customers be annual focus enterprise be solutions, a of fundamentals deployments audit. are the focus to hackers of risk that be and more more in together Then today's exposures or Board. of market a with outsource multiplied, through vulnerability vulnerability science the to threat Prioritization must coming enterprises an complexity online, Prioritization. cloud for VM has the proprietary will

science markets deployment. contextualize tracking how to for believe Exposure, the scoring more investments answer with end evolution release the integrate of To growth excited the Cyber Exposure opportunity of time CISO the information effectiveness provide the are need vulnerability Tenable. facing their Board-level to provide greater the and its huge to are cyber has have benchmarking. about requirements the market trending how We Cyber only company time, additional to fundamental intelligence. we're designed for changed. to is Cyber visibility Over at based a and focus secure are strategic development at data become how about to Exposure measurement day. of executives we? VM When As They the business Exposure to and Lumin VM solutions for represents risk. and strategic, result, to look even and but platform know not We importance of uses alongside every incremental into C-suite management that time, our over risk the cloud their risk the question facing compares peers. data will in think Exposure. on ubiquitous. investment look need growing and we cyber our need for shift today, a vulnerability CISOs we over and where its opportunity, so Cyber Cyber organizations address Lumin the security The why That's issues

We customers and connect, the as we and part cloud major our And have differentiation cloud data manage is in their try solutions all providers. and hybrid hybrid fact compute on-premise scan public solutions the they deploy of environment. that for our that ingest from

on-prem approach coming type requires almost have growth usage, using look at container the and customers deployment are The for We expanded we hybrid We applications, online both this as IoT devices our VM. market web cloud X,XXX to Tenable. of in who combined. opportunity

these solutions needs. to address have We

through breadth that can and assets, us. understanding But without operating cyber-attacks, to importance predict, as October We devices, already and the including market. traditional According viewed to asset We our second, data information be about and multiple with use organizations the is of a OT very the depth sector to billion In published mature algorithm strengths: report the growth XX% OT negligent. recent Landscape describing; another across prioritize exploitability modern the and attack quote survey other spent at market as IoT to activity market a $XX in the Summit levels recommissioned grow combining Institute, has overall and in front been of XXXX. causing of our believe for XXXX, That's security significant understanding the strategic asset in container a combine to quote in of addressable most by analytics. Ponemon get scalable over today first, our disruptions. operational for we've hygiene business Tenable with in have We presentation traditional the And highest in view, and also organizations our Teams of three improve with we downtime many will that cloud Fix passive entire the from and in fact, management forecast key we've been opportunity address their been address threat Consider of use powerful the growth Vulnerability XXXX, DevOps enterprise decade, we to network Gartner's vulnerabilities XXXX. infrastructure of Provide Security Gartner's positioned reaches This guidance about vulnerability. security enterprise What our deployments, Exposure market capability mitigating technologies In surface, new with industry. according this connected assess impactful cyber excited differentiated Operational active instances from coverage. Security Risk-Prioritized single our a year. total requirements. be help infancy. their Matters: Cyber an and the participate Technology believe vulnerability." most will enterprise titled monitoring of in the annual technology By our CAGR customers vulnerability deploying modern solution is assets IoT a its of Competitive "Through experienced of

prioritize, which build, a any is of have of vulnerabilities. set vulnerability vulnerability organizations vulnerability this we many our long-standing a help of VM. a and a Cyber Tenable.sc will best-of-breed leverage address and heard the given their And and singular approach on much soon-to-be-released customer, Predictive to and depth asset on With quantifiable for now understanding Lumin management. as a actual, our deeper analytic of we first applications have using new can We their benchmarking Prioritization, from product, include data through singular focus level Exposure. they third, exposure measure only and and breadth criticality deliver We capability; focus

approach ServiceNow, that's partnerships with management configuration solutions. already of in invest highlight patch they've from best-of-breed of optimized integrations quarter that Google, want Our management a leverage investment the wins integrations six that, and purchased. databases, leverages importance I'd are integrate numerous approach VM's With We've and existing provide key successfully our the and to that like part customers vulnerability ticketing, and to few just and a they our best-in-class talk companies. growing figure to Exposure. Siemens the strategic Splunk, strategic When strategy. Cyber our evidence continued customers, We I AWS, other to as infrastructure best-in-class critical this need leverage highlighted enterprise

mature, One growing, continue acquisitive and not to program digital reporting organization, their a and existing healthcare management flexibility. and did more transformation. needed needed which Their logo company, our to tool new was with needs adds, they was actionable meet of vulnerability create scalable large their not an comprehensive, as

solve to customer the combining approach, need. Tenable.io Tenable.sc this, a VM For strategic both enterprise-wide their hybrid required and

was and reporting functionality with Another manufacturing new their of a logo solution. company was struggling that add global existing integration VM

able customer. scanning, bring most capabilities Tenable.io, asset this as to and we're web for also and plus web meet reporting solved such IoT applications their coverage integration app needs. scanning requirements, also and New was their VM asset of to better very important

external company win that the in scanning, Nessus a use the of integration level. program, including was and of included In such us to And the that this environment feature upsells, addition, as systems, functionality I last goods highlight reporting including a packaged to told the helped and Predictive a scanning, Tenable.sc for Board decision manual maker brand agents, one customer Nessus us their wanted customer company. differentiation their the consumer large the leveraged set Professional Tenable's next at win. prior the ServiceNow. In robust the was VM also equity our to absolutely want our more and used logo multi-cloud critical which to example, us deployment the told to Prioritization ticketing for scanning, This our monitoring with and passive comprehensive the and CIO Tenable.sc and take

and our that to turn for For outlook strategic we interested understanding cyber their results to the call more Tenable our year. wins, all evidence in these is and partnering quarter approach our with like of to over walk the the risk. more through now to customers Steve best-of-breed financial believe for continued the I'd

Stephen Vintz

Amit. you, Thank

As excited made our outlook I distribution particular, optimistic our of will are we you, otherwise the reflected pleased and review and will all for In mentioned very financial begin discuss with guidance are quarters our quarter QX are QX results. hold, today the in last with about will full taking non-GAAP for momentarily, we product we've we investments the I'll financial outlook the results more results earlier, and of the a remainder reminding ahead. and providing in unless are revenue, but measures the year by are several the for stated. except discuss start over year.

reconciliations this may As website. and found in at non-GAAP call, to our of start mentioned earlier earnings the today our be GAAP issued release on Andrea

results XX% recurring, noting of revenue the subscription in the quarter was deferred worth as in was in million, current same quarter grew a revenue $XX.X current first onto the billings, quarter. for the for that revenue the our Revenue quarter XX% recognized over growth change XXXX. year. million the of to in Now quarter the recognized representing It's which approximately benefit defined total of model. is our XX% Calculated year-over-year period, the plus $XX.X last

believe enterprise land indication larger particularly we to and which experiencing and customer ahead ability we in us of of win market, discuss is expand momentum, sizable where share, Let's an are opportunity the our the deals.

platform see to VM without customers. quarter, a new opportunity greenfield enterprise-wide First, from we continue robust we first In programs. customers the formal added XXX enterprise

top quarter. and from increasing of as This a new excess XX adds spending opportunity the as enterprise customers quarter XX% assess strategic can broadly as on of quarter, our These line our X especially penetration, excess of in dedicated in given call. broad figures in with our to we Cyber named context reflective to basis. XXX. become summary, added increasingly last ability highlighted In the pleased of Operational logo more results are our in resources, an net for Exposure sales number assets, enterprise spend much As including investments priorities; results customer annually second, last we Technology. of on These X-figure range the of customers applications, sales total both increasingly in the greenfield including account of reps, XX-months $XXX,XXX new spending terms and containers the come this who we're vulnerability are as web in our management the well brings

it of shutdown. as overcome from much XX-day Federal we impact the relates federal government business, First, the to our did

new noting in year. to is our deals and also just This Fed it's for calculated certain expected for However, timing impact closing to later second, does the be in that happen not year; the reported momentum over the our growth full pleased and in That expected with worth that outlook renewals guidance XXXX growth by reflected a in is I for business, review quarterly updated said, year. in the last continued impacted compare, billings current the with shortly. which XX% will we're strong QX was is

margin turn compared I'll profitability. Now in to last in Gross to expense year. QX QX XX% and was XX%

a making better that investments in margin our Tenable.io gross with platform attractive it based QX, scaling hybrid we Tenable.io of Although enjoy while infrastructure, for customers' gross requirements. demand product is providing flat delivery platform, deployment are are globally on offers essentially as was overall. increasing the expected adoption all than Tenable compared better public the to on cloud to margins continues and our options

of continue term, high low gross functionality add range. of to additional gross we high XX% moderate presence And settle margins However, to margins new this XX% But to out the end globally. points long year, and of to over time. look in expect we range expect the rest as we to the

Now expenses. turning to operating

million We are are expense was near over $XX.X compared QX. of year. in Sales XX% the marketing growth. for This in the for million first XX% quarter in term. in operating from long XXXX, we last QX in focused but on represents our leverage and business from the sequentially revenue term, down $XX But improving up to XX% investing the QX in quarter,

expense As investment as is million marketing well to compared large revenue over industry incremental a a as expense in QX in of due year, first capacity for and first was half higher a half last to which as in produce typically of and us in leverage year. other the million the number expected percent time. $XX.X the in reminder, to sales sales $XX.X of QX R&D of the year is events

analytics million for IoT, expense compared year. last new coverage cloud last percent of a all us XX% essentially revenue, year to of top and and $X.X was science, million quarter As remains a versus paradigm was of quarter. products across and R&D to OT, containers. QX including for last around priority the in in our G&A of flat especially XX% QX assets, but data Innovation $XX.X

a in essentially reflects of to costs a flat increase percent new being XXXX quarter. last company. The versus largely and revenue, associated XX% with As public G&A XX% QX was

million. taxes. quarter quarter-to-quarter, $XX.X you result let of option may know. employer-related the Medicare in Our vary reflects will to are specifically periods, million exercises was from in and employee-related taxes so taxes future payroll loss associated with forms payroll significant operations non-GAAP other $X.X This we Option exercises, of that extent the

of going which a expected per is quarter the $XX.X the a in was loss Now compared was quarter was XX% year, $X.XX, to a to million operating margins attributed margin loss operating share forma loss $XX.X to better negative due QX. to XX% to negative range Pro Non-GAAP the first XX% million than compares negative net from $X.XX loss in year. it's first non-GAAP last $X.XX above better overall per operational guided remainder $X.XX be revenue with the our efficiency. of and share. - $X.XX of gross last to

in Focusing million cash sheet. the short-term We finished balance on equivalents and with $XXX cash the quarter and investments.

of $X.X quarter terms free quarter XXXX. million burn of was cash the flows, of for the million for a In $X.X to cash first burn flow compared

included the However, purchase employee in this quarter plan cash outlay is stock activity.

and to future for headquarters, are purchase significant $XX new the the primarily were in purchase XXXX. program half the free this of buildout of the timing however, cash to we QX they of date. year, nonrecurring at of flow of reminder, previously a On received year. XXXX annual have impact ESPP a the a cash expect free CapEx from to date primarily is Since cash later basis, X and Overall, periods. the reminder, August started contributions financing approximately ESPP contributions March million an the reclassed topic as was on ESPP we will our related as incur we by a free second flow, As the $X.X activity purchase the on of the expected cash due our impacted first million flow not impact which to flow to of of negatively

exit In a performed provided Although, demonstrated flow we we XXXX. on cash expect QX for significant well free and foundation line to positive summary, a margin We successful XXXX. top as our solid still results become the leverage.

range in the to the let's million, $XX million XXXX, non-GAAP share in $XX.X $X.XX we and to to be million; million of $XX guidance. second range non-GAAP XX.X in $XX.X in currently to weighted expect million Now $XX of outstanding to In of shares operations of pro average $XX of non-GAAP forma the a turn to quarter range be the net loss to from range of $X.XX, loss million loss net million. common per the assuming revenue

million; the per $XX million year million; million net of For range billings of from to $XX non-GAAP the XXXX, non-GAAP the the revenue forma million; of in we in range to loss share current range $XXX net to $XX to loss $XXX expect $XX in operations of calculated $XXX pro of currently $X.XX full and $X.XX, loss to million, assuming million million $XXX net non-GAAP $X.X a non-GAAP weighted is million. XX shares average taxes million to provision excludes an the of income Included impact annual in full-year $X.X the compensation. of common turn $XXX,XXX. outstanding expected in QX stock-based the some provision for which call to guidance income of comments non-GAAP for Please And I'll Amit back taxes keep that was the closing now mind for million,

Amit Yoran

our integration summary, management be now the now In customers to successfully to and to to strategic the in of our digital VM, up We'd We data their and position technology, open their combination our Tenable believe transformation. in stronger questions. excited capabilities for aid secure any to call differentiated like journey approach even exposure. our cyber with opportunity pioneering vulnerability Prioritization, that continue we Predictive the about

Operator

[Operator Instructions].

with Our first Franchi Melissa Stanley. Morgan is question from

Melissa Franchi

for on very how vulnerability you of relative with market. management the you in question a around XXXX, Based what to customer quarter. Amit, looking then would high-level Congrats forward just activity into what the you maybe on year? characterize the health level start on and of saw the pipeline QX can saw just the last we VM

Amit Yoran

that are VM of is VM and asking engaged more what committees foundational those the directors, risk questions as they? like. and issues, in they? and And of program security And heat absolutely indications our audit continued foundationally program. indicates the How recognition program. a prospects are market questions customers Yes. answered they're about continues from security exposed There state you are see engagement get How with that CEOs part the foundational Boards, an that up. cyber is are are corporate to that All their looks risk at

and So we in continue growth continue to a new well. account see aggressive of see and pace pretty our penetration as in we customer acquisition to adoption existing accounts

Melissa Franchi

Okay. That's follow helpful. up And for Steve. then a

Can for the - growth billings current implying think 'XX, the Just and is gives walk I for second digging the what so in what maybe in XX% for FY us acceleration? [indiscernible] light QX, midpoint guidance full for discuss billings or of in you're deals you acceleration. pipe just a you through kind into posted assuming growth the you the that confidence XX% for of year, And modest that coming in back the into half?

Stephen Vintz

guidance Sure. Well, contemplate. the of the we as look in do see second specifically year, our momentum we half increasing the as out year, will

Our we're in investments capacity to product new both and terms and predictive new see to of six into and have positioning of as geos sales in we take world. major continue throughout to capabilities, we competitive sales. customers the number of as economies broad hold asset in and improved and of product, large the And a as coverage And sales, both prioritization. our continue logos differentiation terms continue terms analytic expanding figure such well and

growing all XXXX a market. large and we to year, and and start successful good is positioned we're a what is we're the for off this means that very well So a for what believe

Operator

with Our is next Auty from question JPMorgan. Sterling

Unidentified Analyst

for is have I [ph] This Sterling tonight. two Ned on questions.

win the given QX? are quarter you what to and with there federal wanted bit and but addition, if space a get the space, So I guys landscape guys in And was shutdown changes the little Federal could bit to any how the describe that know I mean rates? you men on for a on could sense the competitive in touched

Stephen Vintz

earlier modest was but to expected some Fed expected from the QX. In quarter well terms came better the notably, performance than across But product did globally impacts were more overall portfolios. than across due as better the better as in of board Fed in results Fed, comment we there in but

just in talking flow. Fed has really year. our So is outlook about for terms What timings on quarterly we're impact really of the no

for So the the overall strictly basis basis of revised guidance the performance company. for is improved on the

Amit Yoran

Yes.

frequently we just win touch I'll feel whenever a get more - into very and sets functionality deliver far like competitive lose rates We strong. our and win maybe product superior remained capability. situation think the I we on than competitive

we're in if if a competitive products So diligence, exceptionally with frequently, testing standpoint. when engagements, from rate hands they're customers technical an high doing the on the are win

win So any feel rates have quarter. the deterioration not the or seen any very change about that good we and our of of significant during course

Operator

Our next Ho from William is Blair. with Jonathan question

Jonathan Ho

an thought the out thinking wanted on Congrats you can just timing. strong into Lumin to XXXX? quarter. will updated maybe And the - give around some that maybe start terms with how factor I us updated on in of

Amit Yoran

the talk maybe I'll about Yes a little bit update. Lumin

their how as strong the getting own are radically - been into programs get already into week two the and they're know, market deployment and has last platform. feedback enterprise The for it's we Predictive months, capability customers or Tenable.sc from reception about cycle, released very months the over field the changing customers their last released about Prioritization that of risks. ago, Prioritization the you Predictive Tenable.io As that we couple management our into vulnerability over we're thinking two, product. And

got getting like customers in and analyze stone to translate we conditioned So us, feel those in into about insight risk. we've into vulnerabilities for how vulnerabilities also stepping Lumin a not those and but thinking enterprise vulnerabilities great their gain only think about they to

and We commitment. with remains said also previously move a in Predictive capabilities an understanding benchmarking and and criticality adding XXXX forward that functions. asset Lumin will GA by key continue We build that performing of anticipate Prioritization release to we our on Lumin. for Lumin

Jonathan Ho

that having example of then talk talk and those for you you and give think an you can it. little And by Got solve what Can bit - it. io. a And you - sc I buying use what Got points was types a both the both like of pain sc about buying of case maybe both is products? the io? potentially customer can

Amit Yoran

capabilities in-house, on-premise X,XXX specific Tenable.io point, cloud-based using At They they on-premise us. a to this we their have for majority VM they are if requirements want where both have Tenable.sc infrastructure Tenable.sc. integrate customers leverage they now that and leverage with and prefer a also have some platforms their Yes. platform to and about of

use of the common one to want case infrastructures to workforces, external mobile mobile their into include and So cloud on-premise where providers, application. product the or is infrastructures holes firewall DevOps sets the and examples cloud-based elasticity native tunnel having container-based a in connectors punch three back an those through great those agent systems report technologies, data lot environments. instead and to through required major of to Other cloud assessing they

probably those most use approach the three driving the So a hybrid-type that are are cases market. enterprise to frequently

Operator

from is Gur Stifel. with question next Talpaz Our

Gur Talpaz

solution? shift kind pieces from Congrats seeing question a in wanted out to on in it's and to in the you're there Amit, around standpoint, of fundraising in for awareness happened asset all early is greater but And one, a the you containers. you. seen two, talk specifically space these OT new then managing centralized And customer getting quarter, curious I past sort twofold: the both given have just about disparate then what question the days. consolidating quarter. and of ICS, there these infrastructure in know this? are a of you coverage, first interest see over that's I the

Amit Yoran

is more so that growing of house but comes awareness which interest, this I given home what and risks exist least the operational fence the a OT or nearly much there's without being from determine unified certainly infrastructure months impossible cart XX IT seeing leveraging infrastructure. the the part And but of we've our think, greater their we and much Yes. are over now going with customer as and CISOs help components drive today in of it's a on are responsibility them perspective, of over one or the OT of at the OT, that try environment much assess we understanding to certainly or expertise, last exposures it the the a definitely to case, OT what horse the also, provide is more sort the operational their expertise point demand, look view funding there's From don't We're that an I not along cyber IT view part But environments invited it like. in market - security lot of first into focus if's so into the the is I architecture. know can also and the of of side as and and seen from that that the unified house. is side IT

understanding and risk in OT of of if at a systems, only got and you've operating components, common really looking you're the you're control compute environment. system So broader lot broader OT these the the not the platforms and environments,

provide and that pure-play we also vendors - in and against it vendors. to think is So think OT having And have IT other competitive wins hybrid seeing some I converged approach OT/IT. of this when we sort you're critical, we're seeing approach

Gur Talpaz

differentiation see helpful. products just and Privatization. you maybe something that suite? to and into It's subset the the io. starting how has been question both space customer you And and that out a That's response chose in of include towards create And another competitive inclusion Are to there? you Predictive the between sc now product-centric around

Amit Yoran

about we've are have I'd ones which which extremely they tell threat Yes. a exploit of the response has excited vulnerabilities exploitable, customer the around which get done being say leveraged really been actors. ones sophisticated we the story, the market fact capabilities, that on by are available code When the them work wild, the and new lot determining positive.

go vulnerabilities prioritize which the them these combination so of And perspectives after. helping different to

Prioritization, heard early a meeting these in literally they're fairly vulnerability you about up Denver And Predictive of the our cycle. "thank lot opened So how for changed optimistic adoption So differentiator for it's literally very we've releases key I about is remain just he to are feedback being security customer. but thinks team management." a in talking yesterday feedback. it's saying, it was positive, an and we and by enterprise the - early us. And recent the positive

Operator

Bank. Deutsche question next with Our Gray from is Powell

Gray Powell

I couple, may. a Just if

you evolved there enterprise last then direct on can talk you any motion couple how about can are give growth of So reps this year? has And sales the the of years? over insights your your sales

Stephen Vintz

a broader sizable Exposure. is Cyber and we've the very opportunity we with Yes. The made thing that that one mandate VM very clear see

As a confidence to given result, continue the invest. to

a But new for major in addressing that that self-capacity economy basis, are we we're also not year. investments coverage into have hold. reps, account particular, add we'll on. this - which we we So year-over-year have about taking sectors last in now still adding and are continue year, little named talked a bit Those particular, on go to we planned continue markets, of major which the

that and a the demonstrating. we're market, steady logos, a see Increasing can rate In larger quarter. clearly land and over adding the You momentum enterprise of of new XXX healthy expands. number we're

to in are in And think ability just deals in of capacity we're early of we particular, we're but starting the - not accounts. to also, largest sales with terms focused the coverage making, the that larger so transact some see investments that and reps on returns

the of we as reasons the that it's one the have to why the outlook think to we're today. the I So one we of out rest confidence, look continue providing year, gives us

Gray Powell

follow on up. mix helpful. existing revenue Then growth? the new quick just Any a of customers versus sort or That's update of from the

Stephen Vintz

notable in Nothing No. regard. that

Operator

question next Daniel is Securities. Wedbush from with Our Ives

Daniel Ives

Great quarter.

does six becoming as the given ago, year maybe your strategic where more ago, are in product what feel months to with field like were a it well just as relative even we're suite? conversations we So customers seeing

Amit Yoran

to think I fair that's say.

have corporate important and for VM Over most and it's the how in executives. of where last your of the year has what that or understanding risk cybersecurity one environment market two become exposed and you topics the

say characterization. So it's I'd a fair

Daniel Ives

maybe anecdotally to of product the in of peeking just Okay. And talk of pipeline competitive the your pipeline, versus maybe suite even in mean and relative is your now, and then building the the that. movement maybe happened that's how a market? share sort even I execution success of much about

Amit Yoran

Yes. It's a great question.

I we effectively. compete think

we importance of we do frequently competitors There on importance VM. We said, also, think of displace I you I occasion. think, lose. certainly understanding and the win growing is more as than

each growth progression natural in account. a within there's So

wins do fairly accounts. any from greenfield look quarter. enterprise that also to XX% some we We wins customer and in our careful consistently us given analysis We characterize as about new what of are our see of coming large

enterprises program. no that VM had meaningful previously So

they audit have vulnerability they're and big annual consultancy like or from mature an an to capability and have were a more they much some So on that, in-house four that or relying maybe management now this to something realizing Cyber Exposure.

So yes, think there's I a combination.

we're look, we're a best-of-breed focused, think, provider. laser I

we've our think lead I competitors. from our increased

across I accounts the think of lot accounts to and environments. our more in up of a And importance greenfield need waking VM. that coverage are pervasive enterprise also their recognizing

Operator

Our from with question Berenberg Joshua next is Tilton Markets. Capital

Joshua Tilton

competition. rates more some an in increase Nessus and back to And Just convert Nessus Just have offerings? to it difficult competition advertisements become more your Nessus they landscape saying competitive when for Tenable. competing cited they with competitors, than better possibly. from have outright talk speaking win I've expensive good about Also, maybe seen there the customers. customers scanners of Has to

Amit Yoran

No.

and quantitative conversion I we think there's consistently enterprise meaningful significance from our any our testing, between any delta does and I very of us anybody rates a to would see a that Nessus to strong platforms. And suggest qualitative competitors. of

rare they're we'll head-to-head if on technical technical but exceptionally looking - competition, it know that they're don't about, lose I talking what specifically testing. So in is

Joshua Tilton

news a industrial campaign just target to Turtle there then Sea SKU? or And drive that helpful. conversations really incremental operational follow maybe up attackers malware quick. Has any That's security been Does tech? specifically the using of Okay. Russian the around

Amit Yoran

to a of the case it's environments. - and conversations analysis answer campaigns there the and probably out OT steady between of - driving increased awareness losses been that's lot yes, the world, been study, a being yes, incurred. but short there I been has is has CISO and And certainly operational actual also studies stories continuing drum a come and in think war I it's think of the of

- you've about not ones in loss of incurred. pitch the hundreds of where being seen of to you're back of news, dollars millions all going before, Some that and talking in tangible high-profile

Operator

This you participation. your today. Thank for concludes our conference for

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Tenable (TENB) 30 Apr 192019 Q1 Earnings call transcript