TENB - Earnings call transcript Q1 2021

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Operator

Greetings, and welcome to the Tenable First Quarter Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Erin Karney. Thank you, Erin.

begin. may You

Erin Karney

Amit and this today's operator, the XXXX all joining release Financial financial today for Results. and our Executive Thank Vintz, announcing we Steve call thank issued to quarter. on Chief are call the conference me Prior Quarter for Tenable's discuss us Chief With Officer; to you, Officer. on you Yoran, call, Tenable's results Financial press First a

the can the tenable.com. release website You on IR find at press

the you in and remind during products COVID-XX statements in planned me business the potential impact in the of on these acquisition we These our on our Tenable's some will this the let the to drivers including statements begin, of which growth adoption business; Tenable's we customer threat profitability; demand and materially global XXXX; the to results of Alsid; long-term for that anticipated for the services; regarding cause forward-looking beyond the our changes make economy. forward-looking and and the and call, control, full Before landscape and second quarter industry expectations and of course and in position Tenable's market; risks year which of statements benefits security and could those relating of from growth in competitive differ statements. solutions; actual new our and innovation involve by are expectations our uncertainties, guidance

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

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

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

addition not during non-GAAP call, substitute prepared non-GAAP measures and a of GAAP equivalent. of or to to with are use versus for non-GAAP will measures. GAAP. There performance are we today's measures addition, these discuss of financial related a the financial limitations financial These accordance in to In their in financial closest measures number superior

Our that on earnings available the issued GAAP we for measures includes of non-GAAP and section our release Relations reconciliations also today website. Investor these is to

quickly initiatives. environmental, responsibility on recently I corporate Before the Amit, The bring governance call Relations the we turn I website. to social can your and report be report over our support to social attention Investor to found want to published our

With dive deep our pooled other Directors, the of into sources we internal and parties, external executive practices. to direction and our relevant leadership do ESG of Board a

look to a at We encourage are published the call turn and Amit. I'll results very you take now about the the to report. over excited

Amit Yoran

Thank for today. you, Erin, and joining us thank you all

With validate assist our customers Directory strengthen results. on Today, first importance to First, Active new that about rapid touch and quick quarter. I'll We'll the portfolio, new strong that, Exposure want the pleased highlight say our the that Tenable. and our welcome and to partnerships of Alsid approach I Alsid to talk our and me Tenable.ad, we're think review we've we of ability of results, to Tenable.ep Alsid closing announce and QX more our let holistic including a Cyber QX team solution, our acquisition after our further added of rising the market to with our remediation. very leadership

We a results. are for year QX the start our off as great to in compelling reflected

incidents, part cross-sell the and recent shift opportunities. grew cyber year-over-year, each in by XX% Our growing to calculated current billings of and acceleration revenue driven cloud

informed including What play in dynamic remediation had based of a than expansion user more on in visibility we along to an an is put Exposure We detail, permissions, from go-to-market the in in our us attractive year the Tenable.ep and new margin and EPS. and motion a continuous these greater includes the model. continued highlights comprehensive on solid role quarter have the across feel that providing and VM Tenable.io will flow Steve Key very products of ever. contribution traction have Security. business the central surface. launch understanding into the enable are of and and monitoring non-GAAP assets but cash $X.XX Tenable high-profile of to the Recent an incident attack Lumin, risk Cyber and exists had broad strong platform is so the for beat breaches web a quarter, for footing response. highlighted and where our Container security results successful free a quarter important operating solutions prioritize and need cross-sell, reflection the from growing our to Tenable.ep. also exposure discuss vulnerability our in demand are offers, management with means facilitate cloud app attack of disruption and a Tenable.io, of

both addition, we common to In Tenable.ad, a persistent attack designed have with the audit simultaneously solution threats an disrupt security and and path as Directory monitor Alsid, closing identity advanced launched and hacks. in Active of

the expand, as and Exposure manage prioritize is measure, a attack most about holistic I'd way surface now that to recognize EP. to customers approach Tenable Our talk to to effective risk. Cyber the continues like

platform. happy made rather This the assessing been Tenable.ep approach QX, to great to capabilities. very This late to more Tenable.ep, it from solutions, and of A a a web then available looking for as full moderate based allocate needs momentum exposure combining of Given Tenable's example sale the more adoption app, for new good to takeaway we benefit enabling to make and use of a a customers capabilities in was global Security them easier the asset to announced is and actively gives the customer. piecemeal had Web competitive seeing deliver our our prioritize actions surface EP according than and our to environment to to customer to from as customers for across ways unified effectively obtain our and their Lumin really unified attack assess and leverage we're In seeking a we're results changes. customers through a suite of their this by I'm Container and on customers licenses interest VM, in say combination allows enables the dynamically to of improve App our to in holistic Lumin that visibility. customers Container types with and customers. modify take all flexibility February, platform risk. combination recommended Tenable.io,

the early addition, platform win. Lumin, short In technology meaningful they the the key X-figure about long for both with enthusiastic which we show The differentiator needed are the able to Tenable.ep We're we're the a the EP term. result a pipeline value growing provided from wins perspective. and of was EP. and unified became seeing

momentum in frictionless to securing Tenable.ep deployments. expansions role expect addition we and our in to from assessment, our advance Tenable.io In cloud customers'

Alsid. Now onto our of very exciting acquisition

incredibly that persistent permissions are disrupt are cloud solution. and concern security and into risk Active security we presidential of advance hybrid proper and to Tenable.ad, see In events Alsid the permissions identifies Active is facilities order adopting AD for insights with. of sector. in cases weaknesses speak opportunities to simultaneously securing management, the such for environments designed This and basis recent understanding broader are further especially use the be provides managing the adversary Directory been on-prem strong foundational launched Trust Florida bulk user as thrilled highlight emphasized We're cyber is expand need create on in Kansas architectures. and vulnerabilities include and can systems. deployments the across cross-sell this deployments. paths. water by to attack for of Active Zero solution It momentum and solution technology executive security This and a breaches environments summary, and the our misconfigurations and to platform cyber operational Recent many We our work for the top workloads, complex power security secure in to AD we CSOs has closing used is elevate Directory the of our Directory products. access. new excited cloud of announce and the to in remote capability. exposure expanding our Tenable.ad

a enables We holistic manage managing OT their across Across remain our continuous understand the enterprises our better of products, risk. take and to opportunity and customers OT. infrastructure of unique pandemic, risk. Tenable global large a with medical manufacturer supporting device the advisory, required and understand visibility global offered to both excited critical help to part differentiator a to the their portfolio assets IT risk. As a multinational approach their platform production Partnering manage into about

our integrated our I? IBM and Our and How an preferred on-prem cloud-based solidified partnerships native How it? more the forge offerings talk vulnerabilities the This where particularly transition ease about Tenable, fundamental designed and I? excited the differentiated Now providing about a during solutions and about best-of-breed. to covering vulnerability we questions We're leadership. leadership, am do we're approach of exciting at partnership first insights a for ecosystem. quarter. market stronger and new being help had partner am SIM. answer risk partner as partnerships chose differentiated within Tenable fully IBM preferred what including us a lot our And of: technology deliver with expansive at IBM, of due to X importance We should I capabilities exposed both offerings,

with remediation selected. using platform, to we're leading year. We to start partnership customers also our we're easier off it announced outlook. management about a they've endpoint HCL our excited infrastructure for for our and the a automate In new summary, platforms BigFix, great making already

success to cloud risk. business. continue drivers the Steve. digital to way Zero compelling turn and shift transformation, call will manage and over believe a foundational our like fuel the in to creates portfolio long-term now to Our Trust I measure We will

Stephen Vintz

Thanks, Amit.

for I'll recurring free inherent earlier, model. to with non-GAAP for revenue. Amit cash flow, first note measure momentarily. top will mentioned results non-GAAP line the in discuss highlighted very testament our exceptional we which beat financial are revenue on a sizable and we're please attractive financial a with exception of is quarter results basis, results by quarter, all our the our discuss EPS in But first, that the leverage today growth, As pleased the operating a

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

which Now range in on was the Revenue represents the exceeded quarter guided to million, growth. Revenue approximately our of by for year-over-year million. $X midpoint XX% results. quarter $XXX.X our the

of aided was renewal by in quarter result at strong annual subscription prepaid is the for Our business. revenue which new Revenue recurring our XX%, remains demand primarily and of a high percentage both model.

customers, are platform is pandemic the XXX of enterprise terms of Of year. last of up since quarter new new which new we note, In in business, enterprise up first which QX platform this had adds XXX particular the a we the basis. on year-over-year added from the is in start

a in year-over-year. change the demand XX brings the the This plus In in is added terms XX% annually deals, billings. X-figure in $XXX,XXX is total of as recognized our reflected excess also spending XXX, calculated number net customers large also million. in increase quarter, quarter, year-over-year of which we to revenue This deferred year-over-year. to grew customer in current up $XXX.X XX% revenue the new CCB, defined of

and is As Microsoft of strength Exposure Exposure, the priority top growing Amit transformation, continues the a Cyber highlighted importance line further SolarWinds of earlier, top many key organizations. be to in component digital which the to a by accentuated for attacks. also Cyber we recent attribute

measured of While to result some of see a starting as attributed the year a our indications to investment a of demand. pace of customers pandemic, stronger took environment spending we early are last pent-up

those demand Tenable.io It's Tenable.ep, and Some potentially gross first shorter surfaced our modules our versus we're impacting offering. large dollar which notably This of launch selling higher news business, that also cycles benefit quarter margin, cross-sell early much incremental enterprise renewal part price accelerated positively further noting tend the rate. our I'll continued be is XX% include by last strong performance core this sales which also in an commands activity healthy from is that here this has efficiencies quarter. was expenses. of investments, associated and which trend. middle adoption impacted now operating add-on efforts, VM will levels market. to QX to rated our in business. offset with further enterprise could seeing was in net our indications I'll and XX% to this worth a positively in that in start where by the turn be which quarter the market The pipeline good in of that and compared

cloud increased in more of to continues lake. our support expansive healthy analytics Our infrastructure predictive very gross data margin investment a a public set to and broader be and reflects

continue As related a incremental including throughout costs. reminder, we to the cloud plan to year, all investments make said

As expect $XX.X is increased sequentially, quarter. and moderate in Sales reflecting marketing quota-carrying adoption. points, primarily to including the gross generation increased XXXX headcount-related costs, marketing up to full from year $XX.X XXX was quarter million, sales expense activities last we and investment the which million Sales such, basis our margin by number incremental for sales reps. due for and demand an higher approximately cloud of

abate. and of base attribute as to with the is quarter the of of represents better and the increasing quarter. second R&D the levels last to pandemic a marketing percentage sales $XX.X up This consecutive last which or the was from quarter XX in of investment, our Despite which was starting business points broader increased we $XX.X investment, a expense higher for confidence demand marketing revenue expense basis million XX% than sales million, approximately quarter quarter. and

expense R&D quarter. revenue, XX% to last of compared was percent a As XX%

innovation plan we top million our expense continue last to to and Given G&A priority, to approach, year. invest million throughout remains quarter. best-of-breed compared a was $XX.X the $XX.X

positive was QX last G&A Operating XX% regarding $XX.X which provide this the for compared a percent quarter. $XX.X revenue, tax to XX% was in commentary compared also XX% last compared from quarter. I'd of quarter. operations is like last expense QX Income flat As provision. to to to million was margin some million positive quarter,

in of our As provided outlook a tax $X.X QX non-GAAP a reminder, February assumed provision million.

previously in actually foreign However, benefit quarter swung discrete that not jurisdictions of benefits were million. recognized the to $X in approximately us tax a contemplated non-GAAP

EPS share was $X.XX quarter upside mentioned. discrete resulted results, significant per guided our the despite non-GAAP incremental The beat than business items was first management as our which investments of in range. combination just all line $X.XX, Now top tax better-than-expected of the of in this earnings was better I for the midpoint cost good our a and the

cash increase finished to deferred and giving into and $XXX was approximately $XX sheet. XX, of in the a Now quarter $XXX the cash million with equivalents let's the to visibility into XXXX, an quarter. short-term approximately Total revenue turn balance million million, lot us the of and QX March year. last remainder We headed compared investments, at of revenue

of Turning flow QX compared We free to million cash generated $XX.X to flow. positive favorably last cash of quite cash which in million flow in the year. free $X.X quarter,

in rates, the months, feel collections can we invest continue margins With cash business. positive Over high to recurring bookings $XX QX. said, high flow renewal XX to tend of generate strong levels the high last flow. That we've of gross cash attractive QX while free continuing free does have to approximately higher the in seasonally given million we that and revenue, confident generated

is associated flow Alsid. will levels in acquisition-related free expected of costs to with result and Plus OpEx the higher is QX have half positive the the cash flow in with we year. expected to the QX. in all incremental free So This cash modestly second moderate in

the quarter the quarter behind I'd full With to outlook the results like discuss of year us, and for XXXX. our second

of X for versus CCB Alsid gives $XX of yesterday. and would year will point on the $XX incremental assumption to Alsid, million quarter. million like health the the revenue to announced crisis and some of to acquisition last environment remainder February, OpEx some that our is that we in year. uncertainty, business strong closed also us we the indicated incremental our the start which When While in add growth confidence continue provide to the create I'd greater commentary now

given that has Our for months full and the outlook activity. the the not acquired have for while expenses In QX cycles Alsid expected include the is will review of revenue, will minimal XXXX. today year to impact, deferred outlook X CCB changed. QX, Alsid and I write-down revenue With and of said, operating sales

$XXX million of Non-GAAP million, of diluted range Non-GAAP $X.X weighted million. $X expect range $XXX $X.X $X to With to in share and net of a to operations assuming revenue full million; range average taxes diluted of from $XX earnings million. to And for assuming Non-GAAP to be $XXX be expect $XX range in income $X.XX income be outstanding. shares be income $XXX of to to earnings in of fully the range million $X.XX, income range $X to million we taxes XXX.X current million. range provision the in million. the million second currently the $XXX of operations income to XXX.X per to to billings in million to provision year, $X range range shares calculated of million. quarter, be for a of currently Revenue million, $XX to share be the million from the the income $X.XX $XXX the in diluted in be average million we to $XX million in of of be outstanding. non-GAAP the Non-GAAP the net million Non-GAAP be the to to assuming in $X.XX, assuming weighted million. diluted to fully for to per

turn I'll comments. summary, gives Amit that and we're closing some remain quarter, And long today increasing also raise for in our improvement in over $X of stand-alone now to of reflects matter Alsid, Tenable a clarity, growth compelling QX not $X.XX a pleased we us well the deliver the for to In on from As profitability confidence EPS call we expected and positioned basis. million back and guidance beat the contribution only revenue providing are with the the which a term. results the but

Amit Yoran

Thanks, Steve.

perimeter security have have and the recent stated earlier the assessing As need the that of enterprise. for prove rely Cyber can't profile call, entire and digital highlighted in events raised I strong we These the Exposure. transformation on events across risk defenses

Our message very has been consistent.

aim the understanding For core Its and for cloud improving OT Tenable, natural deployments. surface strength posture security success. on expansion our across driven attack has cyber our risk in is into of the

us would strengthening We from weeks. virtually success cloud JPMorgan, up the see hybrid and the customers to conferences Our call many you of coming hope as long-term at the Blair our We positions Needham questions. capabilities open for now and environments. of for in platform William like to shift

Operator

Instructions]. [Operator

with Brian comes Our first Goldman Sachs. question Essex from

Brian Essex

Congrats on a nice little could Amit, you if of results. wondering some I start was with color. maybe bit

pointed in his pent-up change strong I particularly of seeing office in demand. outlook Where sales given that? in think Steve how remarks, momentum use to, some with you might of to and exactly enterprise prepared and cases velocity return customers? the are things a And change cycle maybe expanding some regard your of the as to

Amit Yoran

say, I'd earlier new demand, recognition adoption seeing an seen to primarily We're acceleration the of operating as and work the environment. digital this result home. in that the cloud a from transformation, seen We've Brian. Thanks, right? the is we've pandemic So shift of whole

part like. of associated to around security their look risk that what up in arms as team get these trying so environments And to with is operating to speed, now trying get the

and also just and strong lines accounts last seeing technology we're environment to that quarters, it even where the understand your increase that's they're it's the VM think result So risk. resulted just set embracing, I couple that that not -- some really for VM of cross-sell of product really or increasing our we're over across traditional the the strength the the leveraging the and exposure of acceleration risk-based help believe seeing spend of in in, broader some that

Brian Essex

to point efficient did Where in was it. it anticipated might changing? they perhaps Got of greater had come the guess be And looks and more bit cycles, how you the quite than we like sales a sales sales, incremental Maybe efficiency in marketing can head that from? adds? I spite quarter.

Stephen Vintz

couple A things I of Steve. there. is this mentioned Brian, Hey

record by with of levels grew in foremost, and delighted CCB free results flow. sizable well had quarter. as we're XX% first and EPS delivered the revenue in and cash First the as We beats

outperformance. and flywheel also see, that in was Nessus have did very the a the We've the mid-market ramp Nessus as the the that compelling of as MSSP of commented from we broad market in board, really disclosed the are our nature some In XX% product that as a we cost-effective of Amit of contributed. domestically an one previously out a terms that, reminder, sales. the of for go-to-market large, adoption that more Nessus, demand, in cycles a called represents the use good area across effect as a channel played earlier, both and across total abroad, as well we we in mid-market mid-market and us. strength saw versus And large in the model have about pull-through we where has QX, created modest In had well as mid-market role the mid-market and and Sales large. ubiquitous where

that but And only seeing down QX it's here for mid-market, larger of potentially the road. things deals the encouraging for of some out gate think we're well, have also bode so we the other the in not

So year, QX, pleased on outlook revenue the healthy full there has throughout CCB raise and some in potentially not for really will large to the year signs us are which our only given and for in performance the early that mid also demand confidence the but with the today. remain both

Operator

comes Sterling question next Our with Auty JPMorgan. from

Sterling Auty

influences in including differences So terms dramatically we are order are, a were to your Just the quarter. of talking tone demand in changed pent-up about it's biggest the from just last what just the the having clear and number all change? very what kind ago other highlighted answers biggest the of quarter what reasons? the think since it, factors has that rank maybe Brian. of And to a But you've you

Amit Yoran

of it the bullish would slightly Hey I Sterling, even had great a differently, just definitely fairly going a into here. to lot we potential there's hear say, from you. saying tone year, characterize hey,

still selling a a But uncertainty, a lot we're You in of it climate pandemic, of year. indicators have midst with that of global be a could the and off strong political of the lots year. very lot

out but got complex have did. We new quarters see driven And to incidents, to that embrace high-profile And start of applications, call so around has the building infrastructure, it that respond really transformation, their only we're it played ultimately, by the we're don't VM, in environments. And started the of did of throughout -- over a what we'll the primarily got the very the digital the quarter believe pleased new quarter, strength environment the accelerate accounting more as to agility I where recognize for but this deal to to that DevOps where seeing they've we getting to not also web set terms with, arms in cloud-based ultimately, customers we're last they've Tenable.ep. they products. operating stronger that foundations continued technologies with couple costs continue with laying of

Sterling Auty

makes That sense. follow-up. And quick then one

different early some traditional deals. mentioned EP even versus think couple we you that on sense about it revenue with average your customers size pricing of how You larger of deal much that has run and rate from the potential EP, for and, deals? Any wins should had, the the

Stephen Vintz

Yes, so...

Amit Yoran

Steve. Go ahead,

Stephen Vintz

just in a there's much notable terms I'd with further of solution. can very that, Amit, just But EP. and you the an context. pricing, provide uplift It's enterprise comment maybe

we're interest suite holistically as the And across the relative remain with plus a more of effective VM, our at includes of well core progress very high, And question. Container so this to relative It is we enterprise VM your premium activity and be gate, as VM, it efforts to out At Lumin. very includes answer certainly address in very way. see pleased capabilities is we enterprise. priced into the uplift And VM a a levels. risk and core WAS. what broader Lumin, think to with XX% our core our in to EP to to helpful broad And sell product going set

Operator

with Hamza Morgan Stanley. question next Our comes from Fodderwala

Hamza Fodderwala

you. question for First

of frictionless with You could color mentioned you that has trending? some early of Tenable.io. here the of the wondering you strong spend some perhaps sort announced been AWS. How some with versus sort the VM of you've for do on some in some was if that what space momentum give And seen assessment white as the I that -- since of traditional opportunity pretty momentum see the you past? the

Amit Yoran

Yes.

people I characterize very plays as their how complement think about wins really and early think what we're encouraged cloud as strong by I'll workloads. well Frictionless securing a to interest.

in many you may very things hours, that have of systems don't infrastructure. way assets, manage have ephemeral you in environments, the those uses cloud you weeks. your last of you types as days, So long-term do But same

of this doesn't what agents, So frictionless got level deeper lot a of and make way environments, best it sense these is get deploy a in to to of much and kind of approach the the exposure. really you've understanding

cloud-native connector. the scanning and the So we of web with it with think product, security hand-in-glove fits really what doing sort we're respect container to the app

in sense to a In other deploy frictionless providing environment, it is makes quick very exposure zero parts, to of understand and risk. way the some parts So agents. touch

that and time. a product, go early momentum to we're So with we of about it over -- quite enthusiastic continues we've wins number had build could and where and

Hamza Fodderwala

seen a assets of QX sort of just Steve. I'm within looking for on And like of existing I guess you've past? Any retention sort sort your rates what in in wondering expanding number as plus? change focus of Yes. an that relative you there? guys in it's I are what enterprise been the follow-up XXX% base, think to the brief dollar on

Stephen Vintz

of Lumin That's not a commented QX. also This And rate stand-alone the OT offering, in part a platform dollar the the was are basis, broader renewal we're effort our drove something quarter strong net as of comes big exposure and and strong I that Yes. on and we on cross-sell of part of in a lot discussed heels but earlier. earlier. Cross-sell higher. the of our very really our only products selling on here. we're core VM those but -- story part that And a

of of product the did pleased efforts Nessus not mid-market that upsell it is also only talked of the our of coverage. to but broader asset but the cross-sell. we us and And only about way a also gate, from comes with the the effect platform, in Nessus. not the coverage. out enterprise levels we asset Cross-sell about performance And into greater lot in flywheel not -- talk also the were So of we're aided by was mid-market in

moving out to appear right the off gate start. growth us So the QX, to and in for be in a we're good direction of

Operator

Securities. next Daniel comes Our Wedbush from question with Ives

Daniel Ives

on your the you just walk federal here deals quarters. there pipeline seeing view are we've next and you to the So exposure? seen in in through view I mean, from your can few everything just of side, a what going perspective given especially

Amit Yoran

Dan. Thanks, Yes.

As strong and you significant in CDM overall a healthy also bulk participant, increase only CDM for play a specifically We've very a the an part of role exceptionally been which always program, Federal significant And Executive power. but very out, vulnerabilities securing Board funding And IT business. have the Tenable in, positive an federal assessing seen a program component we CISA, and the market of signs position Presidential market. to we've know, respect with modernization, cyber. has that not there. Tenable's seen the see for obviously called recently we our approach federal to funding in funding where could a

Nothing, space moves we're a installed see. strong So extremely base. I federal we have the in fast. encouraged But what we by think

that a where strong the coming vital in in they continue periods. will us the strategic relationships function to to grow believe have We opportunities space federal and we're be for providing

Daniel Ives

you're into in is you just more when opener that, with change even obviously, of now last Does Great. of and it And much is driver. then, few become who that that its about just talk we've I Like it starting the so think door an a organization? selling more a to hit really Lumin, seen quarters that stride?

Amit Yoran

We're experience. a Absolutely. Yes. delivering couple vulnerability Tenable if it you as, largely of superior a years was rewind back, management

for providing better it's better just embarked customers. So better better data, better And coverage, we've on accuracy, not analytics. doing this. Hey, it's outcomes

And about and things be risk, their programs, their prioritizing questions. be products delivering getting care not compares start So core the partner talking ultimately really strategic Committee, how to group, start that their just about program how Risk are the conversation -- tactical of questions types with we negligence. and of Audit that we've standards embedded Tenable can are to not also would CISO, information. enterprises into those about And up-leveled working to group. all Officer Risk then but with, of to mature in that a Lumin, so peer vulnerabilities their but that able With looks start and insightful hygiene those understanding customers peer and at just about relative CEO, the exposure ultimately,

types with And And sort to those into to larger which it's do more across customers. enabled infrastructure visibility attack now what we with so really natural of us much conversations is strategic this think to the have swath starting really EP, just we're their surface. and beyond of really our prepositioning insights a of also -- a expand much traditional

Operator

Blair. Our next with comes question from Ho Jonathan William

Jonathan Ho

your how of some start is wanted maybe to Congrats on with this translating strong quarter. deal just out and pipeline? recent either comments breaches activity around or into the I

Stephen Vintz

are encouraged this jump into seeing high-profile, digital this it's attacks been transformation indications investment. year threat This is very customers and further early, out seeing with a complex accentuated some leaning we what we're more Steve. of We -- of the our with It's greater that here. we're believe environment. clear do has sophisticated in I'll gate. focus some by are in Look,

for also segments -- certain pent-up there's So -- our signs and customers. there's demand some we're some certain of early -- that for

So perhaps last pandemic and as the the were but investments essential there home, pandemic and abate, renewed surface, and for connectivity on there to digital collaboration communicate of out lot started for from the things -- a to first all put into temporarily paused. transformation, and work we're example, seeing were year, in on were a and perhaps transformation or our some bring customers focus perhaps of played hold those activities that in has digital resuming

we XXXX. demand think it of There's are QX a the dynamics So in here. And gate. again, sets encouraging it's X the up quarter us potentially for healthy and good some signs out

Jonathan Ho

also it. products talk can about to And does to sell product, Tenable.ad existing relative And within Tenable.ad as maybe the the Got just well? fits how your help then portfolio? you you this

Amit Yoran

Yes.

and how and is of of identify purpose for looks of risk surface vision, their to take like into them right? trying deliver we're where fits But and their attack and the the attack surface them If the to they back definitely risk. what existing and can you exposed. understand rewind is that level go message what ultimately, helping helping which actions efficiently customers Tenable.ad So most to kind our reduce

one we've ultimately, much services, of that's you foreign persistence. whether scale. the want your establish And sophisticated be organization, attackers directory access, intelligence you or because get has active able primary to want for gained attack to you or able surface, the recently seen level, adversaries, want lower As become you once laterally privilege they're targets to your as with within escalate be to move to to something you've

go-to And adversaries. enterprise, the so become target to secure well is Active difficult Directory, extremely which has for in a

directory being be able that new accounts are, monitoring where a to might activities things in audit way, so critical. to of forth. ongoing sophisticated to new incredibly So and down they absolutely privileged assess, trust tightened deployment the active an be identify high-risk indicators so and or also And can to attack, to on able relationships an exposures how is of detailed identified, are as the creation be provide help

attack -- administrator a path, but are definitely and also not where exposed, -- is it's that administrator comes look system see be from That has systems system could has a there's it that a can -- exposures, shorter So part a be that if you you the will. system integral of which only strategy vulnerabilities. in an leverage natural point higher a and domain prioritized, a could

and are that and those excited help we're types There's And secured, so our need of a opportunity. significant can with. help the a the to really of about insights customers excited. we we're capability And real shortage enterprises

Operator

comes question D.A. with Andrew Nowinski next Davidson. Our from

Andrew Nowinski

on Congrats nice quarter. a

on a -- question a just follow-up. then got I've So competition a and

an to survey, seems in which performance channel the the uptick notice our in quarter RapidX this mid-market displacements business. did we of So on align with comments your

if sort rates on the just competitive more if win competition. landscape in So give in shift you of could I'm the us regard that color -- with seeing you're and any to wondering any

Amit Yoran

competed notable called out, always the Qualys we you market. change. a strong We and out performance, our in pointed We favorably didn't and believe commercial RapidX so. strong we've As both continue with see any performance to do

will. SolarWinds' quarter. change, you part think, I part and during of did and of due there's So this in the market notable underspending no perhaps uptick in an real of need, recognition But commercial in sort sales it, if -- response pandemic. to And in the we see which the

Andrew Nowinski

Got question it. then for a And Okay. maybe Steve.

billings, to you I the in the You very ahead growth easy consistent current of was if got would revenue your relatively had very quarter QX and you've very remainder consistent growth. and QX, with very look consistent comps it or -- QX, year. for say,

So for your what that are full this remain above you you year CCB into not that growth will guidance factoring QX? level in generated the or at implies XX% just

Stephen Vintz

Alsid. beat I from think raise revenue, is, comment you contribution say if what in and through were we're will the QX, the through that guidance at obviously, hard But gave. to it's a look beyond I we currently flowing flowing a

the full million. like at a in our million And the the QX Today, the Alsid. expectations. and year a previously midpoint again, story. relative provided and midpoint, Today, to of X.XX, of while that's obviously, $XXX like basis, a the $XX contribution is similar on range year, basis if on range was at to our And full guidance guide it's don't raise. quarter-to-quarter we was your then CCB the then, raise So look X.XX. reflects it's million, over $XXX a you midpoint beat Midpoint a from

the with see. grow We're in confidence our in CCB healthy remain levels growing at continues expectations result. we encouraged revenue and see So as pleased growth what activity the a to and And both business XX%. year. in to It's early

Operator

[Operator Instructions].

Our question Barclays. Saket comes next with from Kalia

Saket Kalia

presence helps some how feel you. little feel a bit quarter, partnerships is kind different partnership if a BigFix of Tenable Amit, bit wondering were particularly working with angle. especially that you of what that in a wondering first you space. of pulling you do this And of Or management for help you've And drove that, competitively? competitively. maybe you I talk Maybe I'm sort in about you announced just you how could BigFix. of the like the tool? just a way that talk feel little do a was Tenable endpoint feel like and could of sort an endpoint bit little like, Do about terms with customers it

Amit Yoran

Yes.

a focus I so providing has the It's think visibility question. helping progression most and can to accuracy, for perspective on And -- We've and it's and natural that they our and been what visibility with exposures analytics look types what are be mean but it's a these then not them it just us. a the people always the great is take impactful. prioritize to improved to accuracy. from -- asset risk actions broader

progression to help is natural the take those actions. from So them there

part as already and enterprises best-of-breed integrations, And with management provider. means to so of best-of-breed laser-focused technologies we open working the And working open APIs have other function. systems through other perspective, a accomplish on technologies deployed, from and our enterprise which being remain that, in well their

tool. BigFix and tried management And true a preferred so and is in the systems enterprise,

doing that and configuration easier. it of integrating lives And BigFix can automating our technologies. other so SSCM make workflow customers' with help management sort and aligns what with been with And we've

customers. we definitely help natural So our think drive it's value and progression a can for

Saket Kalia

sense of maybe the potentially? of a Got if the But bigger comments it. sort It's very could rate bit or you, a talk about and whether of that's through and lens of any just of sort CCB could business, size attach of terms helpful. part little you become for a the contribution? more, how on my of Anything Q&A. in an touched it's dig in wondering and follow-up times prepared Lumin you've was you just Lumin Steve, couple for I in

Stephen Vintz

of lot that will forward, through Yes. what provide our patterns of seasonal a to Lumin. about our continue for a And rates But I platform, attach more going EP. platform. value Obviously, prop of products. to sell the don't time there's probably we we likely be in Lumin over disclosures expectation business. my come expect exposure continue individual with exposure for grow big directionally is course part We attach the careful But decline. want Lumin -- comments, because to and rates the Lumin Attach to to is our rates

big WAS OT We on rate of talk but the QX, broadly, part ticked in QX, have Lumen QX. strong in a we the in an LTM cross-sell up about to everything basis Container, to good and net really start [indiscernible] lot, from more to And here. a a do in off offering

to the the happy around year. the cross-sell and our of continue the efforts So updates exposure throughout on rest momentum platform to more provide

Operator

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

Joshua Tilton

from wanted first touch one, of the different guidance to my I a on billings just kind For perspective.

you year. So you mentioned how see demand this of a relative improving baked into last much that the this to in of the If environment is to full started demand QX, environment throughout year, continues year signs guidance? better

Stephen Vintz

Hi Steve. Josh, this is

million $XXX to on to see and this. want clear, probably million we the the be But way $XXX I best last guided is So call. revenue to to

reflects higher the today guide, the they're both in guidance CCB at well and similar, range, high as What Our the XX% even the beat guided end as from of QX, the reflects $XXX raise and is because Alsid. a million, the the revenue reflects reflects that's midpoint. million $XXX at contribution

incremental a reflects is beat raise out confidence the And say I obviously, the it's And our reflects first but the certainly think modest business. increasing in it's raise. in probably It the the to that beat, fair is the gate. relative contribution quarter Alsid. more the to it from of

Joshua Tilton

it is EP adopting Or Any there from solution? color is could pane helpful. as integration, single When I a stand-alone pricing benefit? it these glass-type And follow up benefit? perspective, adopting I a Is real about of an of what benefit the would offerings customer think just if a like versus be there quick.

Amit Yoran

you products There's benefit. benefit allocate the license, can malleable Yes. licenser its that there's license in form, In simplest pricing and platforms. between

in your also easy the there. asset And up, here to increasingly, changes, to the as it types platform becomes So from analytics scale to itself. shift environment down, scale

host. then and assessing as services that items leveraging exposures being security application-specific web insight able when earlier, assessment, a on systems I looking host off examples and security and identity a on app, kick like addition to application out host assessment a or assessing app automate the the of called So web when at to in web the identifying

So leverage that points of Tenable.ep be the platform. products between we'll taking of there's advantage the in natural

Operator

Our Brad from with next comes Stifel. question Reback

Brad Reback

of the momentum? get what as XX% dollar uplift you gains Given tailwind give sense rate price a with we should product Tenable.ep, of type us can that the in expansion

Stephen Vintz

Brad. Hi,

risk optimize it opportunities first, I environment. do We have sell is will vary. the understanding continues for opportunities business into one with Pipelines the base a on think broader vary it's impact customer between suite difficult in zero-trust struggle dollar rate. larger believe, in we a quarter-to-quarter be from way why can their because, product as though, threat to new that the for is to can that the a heightened reasons don't EP predict more metric. of to net a compelling expansion And the environment, and upsell going us single to far mix a

in of spending a strategy excess go-to-market. over Today, our up So year-over-year. the of progress ago, in made we for a handful XX% $XXX,XXX. customers We've over product us, it's had and of That's And mind, evolution natural have XXX. years tremendous keep years. we

progress thinking innovation and best still brought think market we made to and quarters we because and couple efforts our the good given of couple of part we larger more that a So deals, more EP out and I is your of to the as step us sell the offering, is way we're expect our the of are the years that deals in first enterprise over really continue doing over market to years days side. gate. we we've to ahead, our go And product think evolve important. the on past and there, broader

Operator

Our last Powell question comes with BTIG. from Gray

Gray Powell

the quarter. on Congratulations

give expansion IO for to ballpark, And by exact much or business but but -- just number, be curious, I customers be I are is roughly the I'll new rates SC? driven I prepared SC? it how yes, you Tenable.io just versus versus hinted on of And of remarks, So you IO? think we speaking, that in think then -- the for that's what's to being net want at it know quick. I mix don't on think should you the there how customers about upside it said an

Stephen Vintz

of sales. of as we of launched enterprise terms that XXXX, business, a IO our our following and in also, well would reminder, in a Well, Tenable.io new said we majority mix in expectations the year represent

home pleased say to IO. the demand it's and to think that we've pandemic has we're made the and cloud created I over the very demand shift progress heightened that Certainly, greater with time. for for fair

new that of from that's in a trends record seeing in and IO. we we're secular business some saw just And so And coming data of no QX, the level the market. surprise out play given

in well compute And of of of and look cloud, important doing a is talked with But to hybrid. only products one If selling what to EP that we've our they're -- both We're they're most not specifically about They're cloud not a companies the regard space traditional at customers' expectations. and you both addresses and XXX% is via course, VM environments, on-prem, So and modern the we preposition companies that It's exceeding in and other Lumin. WAS Security and do. IO and Container assets. SC on-prem. is very part XXX% few

mentioned With other we're expansion year, seeing because products ability to and even through important connection to come it are the both rate, as QX with encouraging, in But of little us it. in here we're added a moderate focus regard what we important. new is for to continues -- add in for cross-sell our net a to here new in be of as ability right? is but really and pull us the uptick pandemic. And pleased have an our this last So lot deals. did see efforts. And lot QX with very cross-sell both area larger bit unnoticed it customers us, really to of so of and a to go we dollar direction. not right this That's will a continued quarter, very customers, the

going part today, excited our account to forward, both an be going are it super So levers. it's And customers. it, business installed here base it be way land do model more the AD we're sell And what to and important, will customers deeper Having the of and for the into to about and drive another closed here. new well to with into we both announcing be and do, transact yesterday base. go-to-market both penetration as going as here enterprise us important new

Operator

This concludes today's conference.

You your your may lines Have you disconnect Thank at this wonderful for time. evening. participation. a

Tenable (TENB) 28 Apr 212021 Q1 Earnings call transcript