TENB - Earnings call transcript Q4 2021

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Operator

Greetings, welcome to the Tenable Q4 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host Erin Karney, Head of Investor Relations. you. Thank

begin. may You

Erin Karney

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

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

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

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

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

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

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

includes for and release available section reconciliations that of Amit. today these the issued website. turn over non-GAAP measures Investor earnings on is the we to GAAP to our also I'll now call Our Relations

Amit Yoran

platform. Thank for joining and Erin, us Today, you strength on With me you, We and our our core fourth in performance strengthen expansion saw with solutions individual traction all touch products by quarter, thank results. contributions all in our differentiation let discuss that, I'll our QX, today. exposure from first theaters. our unified QX tremendous of and financial in VM, the the driven

at including saw growth CCB Our where XX%, capping scale quarter the strong for growth we cash the free balance flow. accelerated with unlevered profitability, year was

During added new XXX our added customers single both quarter. a QX, we XXX record net and for six-figure new in adds platform us enterprise customers,

and As system assessing configured the they're is exposures and prioritizing to and manage be how standard guiding has how our risk. security and the in and finding vulnerabilities. vulnerabilities identifying leader customers and continues to where best assets, are those those VM, for how vulnerable been and our expertise Nessus assets

to strength acceleration Over we've few in with our of continued we the QX, platforms. an years, saw customers last enterprise Nessus of and seen download ramping Nessus on

bring already Regardless on and Tenable SSH, importance directory a recognized coupled LogXj and pull risk the the highly prevent keep environments, HTTP, claims, NetBIOS, appreciated terms differentiated firewall, in begun and with and and product If of IMAP, XDR checks exposure the other only complete of I? compelling including developing market. solutions. long assessments, In the of related these any and to lead the vulnerabilities. managing to understanding leader underserved creating TELNET, of market the we're nor hundred We understanding and our that platform market SNTP, the deep of for opportunities and provides marketing and covers under enables critical how expanding, in NTP, coverage, to customers. to highlighted us new it's differentiated of for issues. no our another operational vulnerabilities am traction HTTPS, to markets. and has vulnerability our for no solutions of emerge unique over IT LogXj to of is accuracy QX, Tenable the vulnerability secure How these highlight continues as over expertise a in are able market only our converged I? within a the OT technology itself checks to answer tremendous And exposure drive use. attack by identify Enterprise LogXj question, as Our next-gen mission new surfaces tail no your enterprise provide assess, to to time strategic discovering we've as we SMTP, and of growing FTP, POPX, This understanding risk. other direct saw LogXj. EDR, quarter of detections, Tenable's breadth am at checks environments both protocols. active We believe solution of and

attractive leading enterprises in that Tenable.ad, to have we're and expect great in solving a to XXXX. our greenfield where to active believe directory us. for largely our expecting security traction spending strong are point their see very in increase pain security this technology. be we XX% and product, the also active We market We continue directory of market,

extended in traction Code, Management and with understanding cloud We've our capabilities customers of Cloud acquisition environments. investment native based Assessment. expansion. on our and focused With to secure their cloud Kubernetes cloud the cloud assessing a applications of secure we've addition we've Cloud our Security long around our security customers Frictionless Infrastructure demand them excitement helping connectors of and containers. deep Posture these products environments, continued as in years, the more had and cloud our strength help require into web seeing recently for introduced markets, We've Accurics. from into we're to their In into

we for to cloud continue integrate way far not vulnerabilities or just the configuration fixing your the and the to cloud through job machines the portfolio and from the pre-production, context business. our the for capabilities, way exposure risk assess cyber we're themselves. the for becomes Kubernetes and the the the risk evaluating time. the and risk of audit and Tenable.ep, assessing infrastructure of far our committee place the just right where fixed in If the identify reach left run to code all and cyber for from and Directors, and out cycle. to the entire discovering assessing them entire and As development can of Boards life and across our your expands building virtual exposures misconfigurations platform their build assets, not in help broader all just Tenable across containers understanding We deployment, full you not the risk piece go for definitive CSO, cloud it's and CEO, risk assets understand

assess AD customers without their which seeing environment, we're security in They the VM, of capabilities. and cyber Tenable.cs, into strength leadership in our out quarter, position this properly including and risk environment market Tenable.ep we risk, and cloud integrating cloud our others. evolve their environment, traction And as teams in solutions, Tenable.ad us incorporate to cannot as Kubernetes, in with naturally demand approach. new to addressing container play IT from put integrated unified in other of environments. their this understanding had we're expanding Tenable.ep Security and assessing market. expect Code, and Our exposure includes CSPM to strong and that another continue now more risk Infrastructure

analysis of security asset vulnerabilities a exploitation. Cymptom' agreement the expect across modern is how part platform EP in technology, called We environments interconnected integrations, will and across cloud as when and announced enable tucking our and integrated cyber enhancements an to complete during and management. will into in cyber to to path Earlier acquisition preemptively deliver Cymptom, to and enabling VM, into clouds extend we've will integrated close native of, code, which integrated of response risk maps EP, of paths drives across public their augmenting configurations, of expansion and ahead closing vision run the understand need Israel visibility Tenable.cs, world an this managing technology with system. an and CISO on security into types teams security as prioritizes solution and paths our attack many surface likely to a picture continue risk Tenable unified and of unified believe focus, assets across our alongside attack to efforts these our into analytics, The with unified leadership quarter. active to exposures cyber interdependent today, path workloads. market address company customers another that is an attack this analysis attack what we to sets With end-to-end risks the in reached Serving OT a application directory, leading workspace. After Lumin, we analytics risk many data EP's breaches.

weaknesses IT managing it's any single we're in and in if shut see directory. in active pursuing in best VM. security. that elements risk accurately ransomware, vision exposure a associated At isolation. conclusion nearly I piece solutions we discreet we assess a And a see focused of brings and is anything cyber thought, on their understanding individual and of the and also down sole state it's active breaches, but one exciting Tenable, operational technologies platform unlike conclusion, directory to and there's means affect delivering the risk we're That risk cloud with. me target key in else growth in Assessing with performance leave for But not breach and across one to Yes, this impossible strong only our IT Yes, you interdependency, available. to exposure, of we want nation understanding OT one this. potential technologies can markets, believe breed strong pipeline, technology identity

bringing not compelling differentiated like now. recognized, together to call Our turn solutions, brings only data the in Steve market exposure we're cyber platform the unified these over platform and unique with to of sets together I'd more exposure leading analytics.

Steve Vintz

Amit. Thanks

will beat in delighted more the acceleration please earlier, I but are discuss with the growth, we mentioned earnings quarter the flow. financial these and points commentary non-GAAP measures, of financial per all a attractive are CCB fourth note Amit results notable today results by free we unlevered revenue. provide highlighted share that significant As of on levels in momentarily, first of with each cash for exception

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

expanding represents which million, revenue to a Revenue accelerating $X high growth in results CCB, the our for growth calculated year-over-year plus which as QX was $XXX in of in saw XX% sales our for is very from revenue activities. our revenue year prepaid We and result the XX% XX% defined annual remains as the to of growth of to accelerate year XX% Visibility QX. of the for billings. a portfolio by year-over-year XX% full us recurring in onto quarter go-to-market the differentiated XX% successful QX a $XXX midpoint the attribute growth investment primarily capabilities, Revenue to in exceeded in XX% range quarter, represents in QX CCB for year and change the now our million, inflection million. guided our subscription outperformance this Now quarter is grew result growth. and increased in percentage quarter. which VM Revenue in model. was the was XX%, The throughout $XXX.X revenue deferred capacity forecast year-over-year. current in to in in product we current QX recognized which million.

the board to and good the and best During quarter way that geographies. our in we linearity business renewal one of note entering all to experience across new and we're QX, on It's we our both year. growth saw of in very strength important December,

expansion both a applications. saw significant of assets discovery coverage rates after in in increased and our of the uptick LogXj we as However, customers December,

rate. Our sales our from expansion Nessus expansion renewals, and the relatively sales including dollar cycles. mid-market benefited outperformance we limited inside which touch saw Likewise, sales rate new our also churn, the customer all in winbacks also particularly short exceptional of efforts from given in and logos, through no channels lifted net

longer pipeline. with for New close logo saw sales were also opportunities from customers market strong that large already sales in advanced the cycles rates QX

healthy. New quarter was pipeline for large built in the market also the very

last in customers performance, and QX XXX added financial we enterprise Now strong our record added platform in terms XXX us from new quarter, which in underpinning for the of a we year. metrics up the is

also customers customers platform to annum to technology gain solve customers QX deals IP across outside's enterprise assets, is the in OT our attribute customers, almost we last security six-figure is solutions, new same From We Tenable.io, product total spending and demand Tenable.ep, perspective, to and in holistically added number growth. active to a XXX,XXX strong new XXX brings X,XXX. which the risk quarter as and identities as net a traction modules assets. assess over number had exposure period per our success to enterprise operational directory in quarter, which mix platform from security large of continue and need new in Similar our We includes this net new of with added ever customers largest and XX the single the up six-figure we year.

critical cases, code infrastructure capabilities in integrated since existing use not noted significantly Accurics prior QX to believe we closed will into the strength capabilities it to our the Accurics we of trend acquisition nominal security of the While and to in and enhance our secure the cloud cloud quarter. the as announce CCB that capabilities Accordingly, summary, shortly, of strength CCB should top given the to quarter motion be augment was plan line and with in are EP expect saw Accurics our soon second the our begin We've the cloud contribution in go-to-market one-time ability assess with to deployment were availability more we environments. cloud cycles offering delighted we integration year. expansive benefit sales in In the year. and these to and in half this in infrastructure

our this margin Accurics. from margin, investments Now, growth sequentially to also cloud security related gross I'll XX%. increased offering. a which the of down increase and of with from sales associated and start full last related was with expansive year related public cost the products infrastructure Cost points support turn the and to higher which XX% due XX the include to operating to Gross quarter, basis more scaling Accurics' expenses, expenses in usage incremental costs to I'll was and quarter. cloud customer

and customers We investing also to of across holistically. predict attack in assess advanced broader risk are a surface better set help analytics the path attack

margins as solutions. as $XX.X impact XXXX, range. expect gross XX% into Looking on ability to we expanded investing still these the us, be was our in ahead, in continue Adding percentage we in investments marketing level product to which to to to and of our XX% accrued for the XXXX, million area to up higher benefits dollars of productivity, related portfolio margin. compared Long-term, an which invested. new quarter low Sales could quarter, high QX hiring taxes. gross expect marketing our exposure is efforts and building in continue brand high ROI was well reflects expense sales modestly for revenue the be last and attractive higher marketing capacity well demand million, and to our in from in for expense focus $XX.X generate other sales compensation in performance an will as reps XX% Sales and acceleration and wages XX% of a quarter. as headcount, quarter. sales sales increased it go-to-market an and more the given to the gen marketing investment commissions activities Sales and growth for payroll variable strong as Further, last attributed our expense reflects and

is give dollars sales revenue the was as expected keep last of R&D percentage and strong this was $XX.X consistent remain demand. which a near with year, a with to million, investment which percent or ample $XX.X for full marketing the XXXX, in and us at will was quarter quarter. expense XX% million For pace expense to

should costs it in to Accurics revenue to our more engineers QX platform cloud at last XX% during expense as security software capitalized by attributed sizeable in and hires, the related expense there in expanding of R&D percentage added little the received. compared change we offset of that was a exposure quarter. credit Although, team and R&D in other amount noted of R&D we XX% made was tax development was than quarter, which a to be

For attack $XX to capabilities. attributed to year path the revenue a acquisition quarter. the last expense full cloud and and in percentage R&D in security, as to Cymptom of was the expected expense is increase and a investment predictive $XX.X modestly was given million analytics XX% platform compared million broader G&A increase set of analysis XXXX,

a was well last year. quarter quarter, As percentage full for and this as the G&A as expense revenue, of XX%

G&A and continue business. to We to scale support make of investments in growth our

in million highlighted. We compared expect Income of reflects as was million G&A from last $XX.X just percentage the operations which remain flat a revenue to expense $XX.X I items XXXX. to quarter,

For compared million operations X% million full Operating and year, operating income attributed compared margin EPS the quarter improvement full which $XX.X in to the expenses was was was XX% the last our high to margin end than $X.XX, QX the the $XX of despite X% the full for to quarter. for acquisitions. the compared which XXXX, XXXX. $XX Operating a million non-GAAP Accurics from Alsid was X% fourth better year guided additional X.XX was range. year to in was for

generated the per For last $X.XX of share year, versus $X.XX we earnings full year.

in sheet. cash Now, quarter million We investments. finished with and let's the balance short-term turn the $XXX to

including of deferred visibility us million, deferred gives was which accounts QX a and receivable million strong revenue XXXX. Given into $XXX million current lot notable and $XXX headed was total total At accounts results, increase both revenue, in receivable year-end, sequential our deferred $XXX we of saw revenue. a

the years $XX.X acquire flow. to of is paid to facility and credit which our we of we feel renewal $X.X rates, unleveraged and and free XX% a million we million for October. $XX.X We in $XXX on high I revenue, Accurics discuss Now QX, high million recurring right since year. attractive $XX.X this cash of been generated of of to used cash indication would million, and for can rule Striking interest the a has like business. us. A while levels. area and achievement XXXX. the of cash we With for million continue margins our flow continuing in to IPO gross long generated that year over growth in XXXX increase In the good full profitability focus goal always and quarter cash was of term an confident invest generate levels is XX the our of this making Achieving fourth in between

to achieved milestone. we're pleased this have So, very important

As flow we plus cash revenue of XX rule a define growth margin. reminder, as free unlevered

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

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

few guidance in QX for the performance make XXXX. important are and I full there year to XXXX want comments will give a us the in to strong today. and regard, of confidence our a Our our outlook business context In provide lot that that

and continued modest during reflects Our guidance CCB to Investor year. our December. year of that expected XX% today the with be the LogXj discussed very XX% Overall, which from we throughout notably is more bar in XX% Day tailwinds we're pleased the CCB guidance the revenue for full in some QX above contributions to growth, remainder includes providing

and $X profitability, X% to an X% of terms quarter lesser the to we which important a full X% Cymptom. ability suites operating year $X our deliver in expenses to to our investments markets million the operating margin product to are per related exit to QX our XXXX, includes vision. year attributed and In of acquisitions with R&D and degree in The to from Accurics strategically expand guiding exposure recent incremental million strengthen cyber

we expect higher quarterly half higher resulting rating terms In of with second the these first the of in of investments, follow year. half the flow in the our year, seasonal historical operating patterns to margins of the

we earlier, QX achieved full the year discussed rule XX of and XXXX. in As

well success. profitability ability face become Long-term, believe we balance today. of now continue the position comments. of are XX providing making closing in for turn and strong and growth for us with So, company. the demand will with growth good we rule results to some quarter investments in of delighted I'll to outlook a summary, continue In our back and the are we the the we're about feel call really Amit confident

Amit Yoran

Steve. Thanks

that role increasing particularly placing organizations see to given This the on of continue VM differentiation levels VM. our in is increasingly capability. are many exciting core strategic We

our excited we data path Accurics analysis solutions into the questions. incredibly now delivered solutions and business, unified us and cloud up OT We're seeing and the We thrilled differentiated have And sets results forming in by these great for road cloud about integrated analytics, augmented about AD We in with cyber management momentum to an the we traction. exposure and are QX and offering. risk in well call a like that Our others believe the comprehensive as ahead. attack such are open strong positions long-term. Lumin platform for bringing

Operator

be Stanley. with we question-and-answer this Morgan Instructions] question. Thank Fodderwala proceed of time, At Hamza [Operator Please a you. conducting your first is will Our question session. from

Hamza Fodderwala

Hey, guys. taking for question Thank Steve, you the and finish question my to first you. for just maybe strong here. year

You tailwind what wondering mentioned rate the XXXX tailwind saw the NRR us was you was could actual what was what the quarter up growth was in from I that LogXj. QX if retention mentioned what and QX in help for standpoint from quantify net you the A, contribution prior? relative expectation you so in to is

Steve Vintz

question. question your for Thanks Hi. and good

As we've some to saw LogXj. quarter related the in commented upside earlier, we

the I to well here on throughout is in business the having the year, year. surface December. our LogXj our didn't best think important the we until which acceleration we've were note given demonstrated timing's quarter way it's to notable of -- And growth the

in the pull So, a touch the more impact see in in quarter forward as a had we also as activity such levels quarter, areas see in of expansion pleased more the was apparent sales just deals new of and for very as mid-market sales, cycles, no result, channels. shorter we and in inflect business, renewals, of are demand. Nessus sales But this larger our higher pipeline so specifically don't LogXj terms and the that

in product profile that year saw that we're earlier, note which important other as of growth, we different year. is very the is in our pervasiveness about portfolio QX the back us strategic overall, a feel which contributions, which the our expansion does commented as XX% complexity net we We the business in versus growth but CCB year, It levels. well to that CCB contributions pre-pandemic full year. for basis from and leadership good accelerating our we it year more of breaches it, or for modest and XX% -- caps and to perhaps vulnerabilities with the the XXXX, visibility continued is dollar our the and reflect started even LogXj to close benefited level high point for -- testament some from products. regard go-to-market, given about the really is the making rate a our as some really net investments strong making the LogXj really half to which And think about guidance first expansion in nature does tailwinds rates. in of a market throughout our to here lifted to our the on talked of and the the an dollar was I successful in Amit momentum expanded And quarter outlook LTM data our really QX,

a really of a year gives solid overall, and caps lot So, quarter for us into confidence us successful heading XXXX. very

Hamza Fodderwala

I if Steve, could that. on just follow up

levels. Just on the net pre-pandemic retention to so like, you back mentioned it was

was is say, mistaken, like was quarters, XXX like think QX, net XXX, trending to that, to XXX back it fair between if even. retention, to not XXX, say our in I the few I'm it last level let's

Steve Vintz

Yeah.

an is we XX LTM. What talk distinction the on make So, months. LTM I'll basis is last about

rates, So, going on the in our meaningful it's strength renewal expansion drive a And uplift meaningful and in quarter. number. to you a really have strong number, we LTM in our a rate LTM quarter uplift because if the of saw

the few the So -- to was as strong. we few quarter, last earlier, particularly of benefit of rate strong weeks that good expansion benefited. expansion were And and our absolutely on LogXj was the I areas in delighted not in last commented LogXj, with because but did the a quarter. the result having really quarter Obviously, the withstanding from way renewals and

Hamza Fodderwala

you. others the it. Got Thank go. Okay. let I'll

Operator

is Sterling question. question of your next proceed JP with from Auty Our Please Morgan.

Sterling Auty

Hi, Thanks. guys. Yeah.

the from XXXX? but for can sense us gave for the you you what us that is, of one line first revenue Accurics on So, in Cymptom, and expenses guidance impact from give impact had a operating

Steve Vintz

as Cymptom -- fourth to just Accurics commented, through related operating the closed For Obviously additional and reflects also acquisition, I announced. quarter, which Accurics it in full year we and we expenses. a flowing have expenses guide the the some we're with

Cymptom is to and that not our going other speak I product are on deeper And more going to separate areas be It's that. with and our EP to important skew. insight to integrated a directly note of think it's can with today the be provide Amit in a -- of given that that's we greater Accurics, analytics. CCB, a that to year the begin And richer be of expansive as security regard announced our second in offering product cloud reflected expect on in expansion will cycles. We we've guidance and the to sales is contribution be selling our today. well. half would more to

Sterling Auty

then maybe the just a just that And clarify margin on you made. gross side, one follow-up to comment

the on have mentioned fourth gross impact from margins. we gross level the full So, for could that year You Is to some in pressure margin the or the from XXXX? a level relative that additional see could investments modest level continued quarter?

Steve Vintz

of It quarter. off be what we from would QX based in experienced the fourth

Sterling Auty

kind impact pattern point? bottoms just through modest And is it of kind kind some Okay. where stable at of improve year, the a and there or starts of to and

Steve Vintz

expect now was obviously the the we in strong expansion of cloud. We -- what directionally think I really sales commented with for earlier pleased we product.

represent percentage continue I to of think our larger cloud a sales. will

we're expecting what line. a is to in track as result, gross So margins

to the bps. lower XXX Our trend about tune modestly of

should what top is potentially that from assumption extent because upfront full you costs year. safe semi the do our and that the margins going leverage margin could some the of forward going in assume experience year that these we least drive and today, costs at the guide, making earlier to we're better line something that to year, calls we'll that continue will and this think I And than are forward. for fixed then benefit obviously for

Sterling Auty

Appreciate it. you. Thank Helpful.

Operator

proceed of Saket with question Please next Barclays. is your Kalia question. Our from

Saket Kalia

Okay. first in EP you, about you just Great. Hey, and Thanks taking little strategy in the lot just for call. a a questions here. of bit was with of overall talk for of Amit, about my bundling how bundling. success strategy guys. XXXX maybe thinking that wondering, the the kind you're I expand on can

Amit Yoran

middle of Yeah. customers When we of immediately top lot sales -- other first the are we just and products the and of inclusion of team the last capabilities, web launched driving of things of EP a year, toward of security gravitating Lumin obviously, the inclusion a the both it. just saw it, some on analytics app lot sense. make scanning container And toward

to saw for the There is two, we I by gravitating key of very include very EP. points both base the full active capability, So, and team cloud capability here. think, it. customer a make adoption suite are directory sales natural there's to progression One toward in rapid and EP

packaging analytics out. exercise. or assessment not multiple driving move of the So, way their just into methods like we packaging able bundling just types, analysis, across asset platform. EP attack to and of And again, assess all are and asset they is unified one real inclusion then in going types can a There's absolutely the started path that when again, to it's risk, make -- compelling It's then point that new now Lumin, where a customers it analytic natural not more -- the second that exercise, very risk. to just a dashboarding, a reporting they're holistic place want there's bundling not

Saket Kalia

Got sense you've but the to That Cymptom us just with from an the kind and on there Steve, Nice guide for just any that got makes you've question lot got you to organic I growth CCB how the asked, XX% contribution you've guide. to is for -- make revenue, got kind of organic and it. my Accurics give of start Alsid, in to rough sense CCB XXXX? for any looks a Got could for just it's there, that year maybe on inorganic XX% you follow-up. from was perspective? just sure I sense. a asked it. know think

Steve Vintz

early or capability. Sure. sales a very go-to-market reminder, all are acquired companies the minimum stage Well, with we've as companies

and primarily now on our so years. of the Alsid the acquisitions. ability to some we've two go-to-market include in pipeline our success So, OT our sale. efforts date for post reflect sales closed noting worth offering The market We timing's had in also create, an XXXX, opportunities to of the

the OT did full if emotion. cloud the but be say basis year. the And and growth. we our us really in the more earlier product, discussed even quarter. we offering -- would and and said to active That and second It's the very we for which closed closed leaves new contribution some to closed really for expect in So then, in expect of our I for recently that's full a resulting don't half to directory for Alsid, inorganic expansive which April us. is we our say Day. both just year going consider quarter well leaves year. Accurics, you guide Investor on more We these or that we it Accurics products the contribution And a should AD reflected in that do degree, And fourth in a -- that

into our impossible unified fair as that repeating. is is think important really better it's we more growth solutions. type piece go-to-market continued contributions it's products, one to did here new would all technology exposure I as isolation. our December, asset increasingly to we to expect that's and referenced broadly strategy, with note commented But in integrate worth accurately the well and -- nearly I little our million from earlier, our exposure which thing a It's even with of our to we EP, in really say, to features but $XX associate regard those or one assess capabilities Amit risk want and platform.

other Our products that is customers the attack risk broader prop the really helping assess reinforce and across surface. value each of holistically, and

will our our will helping less breaking package whose the EP included going So, customers price problem. individual capabilities included in on and out given focus in sales become or and solutions we are of forward, how be products meaningful really EP bigger

Saket Kalia

Got sense. it. Thanks guys. Makes

Operator

Please your proceed of with Andrew Nowinski question question. Fargo. next from Our Wells is

Andrew Nowinski

Congrats Great. EP want I question that on start on just quarter. to great with Thank again. you. a

you components, CS maybe how we mentioned, can that? be increasing it added -- it customers because would Is You've lot that well. to be AD accelerating in sounds that as growth of much color your price of in XXXX and terms the give added now in as like $XXX,XXX expect any should and of will a you us just

Amit Yoran

delivers Steve I Yeah. a a a But of on top way -- and is a premium premium solutions. to I'll It's individual just turn the that enhanced minute. what EP that offering is capability. question -- analytics solution. it's designed platform It's over

want use and the is it because you -- move might want the might same The capabilities, other if the you through you're all all directory. last, we true to to active EP same if security VM, you if cloud using the purchase true product would the Lumin functionality. is So give you're using

added premium So, cloud is EP new it's your or but the new you monetize these and is we will to for a still cloud. pay that they're the pricing, to price products way have workloads asset capabilities and the in AD your for the assets

of through as both increased monetized analytics top we're value-added price delivering higher well some a it's on count, assets. asset, So, asset per because compelling as an those

Andrew Nowinski

Got I just on maybe want your makes to do it. sense. And then That -- a question clarification a LogXj expectations. on

impacting I think you after said be it will that. but then certainly it QX, moderates

two to If this you potential the claiming problems they're go and create plus to the commentary and years. is kind next some of CISA issues going from House, the back White that for

the to drive maybe it's really why wondering be even taper QX driver, strong worse or year. off a and throughout getting not you do going I'm So, think after a

Steve Vintz

as it's more is the we're we benefit what's I degree reflected think beyond tailwinds that providing earlier, mentioned QX, our beyond guide, I in determined. really to -- remains in really guidance be today certainly what above to and Well,

of expect And but first the for quarter, the just for so in quarter, strength overall the year. reflects guidance we're full the really business, the not offering today the continued contribution we

of the the -- to really up the the provide remains success quarter be more to the confidence to us -- which But to So, that extent XXXX and really providing we're we level in QX year. do we're what for first We and guide today. we going visibility remainder continues gives into the benefit to think seen. it certainly headed us set we have expect

forward an call update So, our providing to we'll in on April. look

Andrew Nowinski

That good makes sense. Keep work. guys. Thanks the

Operator

Powell BTIG. with proceed question next Please Our is of from your Gray question.

Gray Powell

All a and right. my great questions for congratulations quarter. on taking Thanks

Amit Yoran

you. Thank

Gray Powell

absolutely. Yeah,

billings the each of yeah, highlighted growth So that last in you four accelerated quarters.

XX% be but start you the growing exited then if Steve, And just where things are you of get a people likely to see And or I what year XX%? so, the to most right do I'd maybe You further want you curious could that growth. conservative, just there? know you keep levers excess could and in at do improve like, scenario things think go

Steve Vintz

we've The we're We're rapidly. and growing the chasing new guidance into markets. investments the is aside providing market that gone that today Well, we're We've a XX% large are massive look, but to and too. opportunity. portfolio markets XX%, expanded making product

the really making investments is line, continuing to that that really important I problems started of top to today. -- year. we're the really aggressively profile very know I -- product think the one that's And high threats that but higher makes relevant suite. the levels the a also We're the of sales first of it's capacity. on things difference create making a the to of achieving productivity. we adding We're are it's with half and backdrop think that difference more solving just evolve data all breaches, not And

confidence obviously, we'll now not right We're This us is big by pleased the We're outlook a gives our in growth to a throughout see any and it work we think XXXX. our I certainly acceleration not going the year. -- to in of lot So, as our more way cap opportunity. learn means.

Gray Powell

more Okay. one. That's really quick helpful. And one then just

get how I know -- of all before back to mentioned that those like LogXj. that a for you specifically, or, did sense assets customers afterwards? came as coverage expanded in a what we what in maybe talk So, a doubling following And trying like, coverage Are talking December don't and covering percentage of look about what LogXj? just number like you of Could that customers I'm their assets just looks. like then to coverage looked

Amit Yoran

different. Yeah. customer situation I obviously would is each say

coverage their don't they an the especially of side, also other which these great portable that in covering we example runs enterprise haven't environment, recognize, any system would on substantive think been but LogXj instances would forget have many over is completely of mean, I is exploit, I assets. some Java. a they Hey,

in devices other and compute Java coverage to LogXj. there's to might still of the problems run lots if be stations, So be pervasive respect you environments and of your they or that were -- desktop cause work might even susceptible able had with servers

So, that of would or but I dependent, customer I nature. of assume it's a by sort really think customer anything it's natural doubling not

Gray Powell

Yeah. No, ballpark rough making increase. figure it. out I was trying that just just Got was up. a I to

Amit Yoran

Gray. Thanks,

Gray Powell

very you much. Thank Cool.

Operator

is question Sachs. your Goldman question. Brian Our next Essex from with Please proceed of

Brian Essex

you Thank taking Great. quarter. the for Yeah. for results and the nice of a congrats on Yeah. set question

past how How over threat Just the about particularly service last the landscape I quarter progressing talked MSSP XXXX? -- and the into in contribution penetration I is channel. maybe is few think quarters, traction from that environment, the quarter, in guess of how Amit, manage we or given the providers

Amit Yoran

Yeah.

-- the the I and progression becomes with the and with I'll start think increases sort The of of entrusted concern executive data it visibility. us say, the are that second the Hey, or think leadership increases awareness, -- question. a I among are tailwind business the data off to to environment, making It it of us. for -- we systems sort in that people good threat standard-of-care natural and leadership the the of business increases exercising the

toward actor read profile people we? a which susceptible the always secure threat a vulnerable? the to questions. really Are is How that we How about this. for high ground the those is vulnerability breach, at natural or progression center answering very truth so around and gravitates are And VM are risk you program, when naturally we,

In area where investment. MSSP, made it's an we've some of terms

up differentiate meaningful there's that very where traction. our out put very enterprise partners momentum, -- ago. I can of see to plus MSSP months maybe And the we a seeing continue and itself. providers, MSSP XXX XX largest of with We around longer six MSSP really believe with, kind sort release strong manages requirements. it We've capability more specifically we expectations or in a And but got operate think press partners traction we our

fruit area is exists. an opportunity investment the it's think more where we beginning think I to So, bear and

Brian Essex

is helpful. That's the LogXj maybe, environment how competitive the back kind shifting all of to Maybe kind still be Tenable, kind if then your is get greenfield in opportunity -- it. is Got platform we threat on that of -- a vest of any seeing of Tenable either relative is elevated displacement, helpful. driven current if competitively, with shift for being without where the at management could status touch a the breed vulnerability environment. would there because you're vulnerability or over to causing of shift And color enterprises it or the there, formal I particularly or on environment,

Amit Yoran

many about accurate where notable up questions CISO, out chain to known I'll LogXj fill Yeah. of of have basis. it, capabilities and about in issues. of asking change or on It's that terms flexibility these the a third new on a the and cases Steve, our in for if go breadth a greenfield, detection can CSO, or this there's the it's but any for quarter let coverage issue, of you to you vulnerabilities typically differentiation, are food first comment for I we notable very way that out immediately quarter been say there's in profile will -- these of consistently very the -- these the in especially in terms we lands. market our enterprise of high of terms enterprise capabilities, larger like where breaches new and detections in call

or fine, instances coming incredibly or is by they that tail back managers -- got this there's we're a this. had me day, At is technology multiple XX over because checks this saying, we per on checks. program adding So, hundred back VM thing. CISO new an and coming long point technology or different of we've And this telling found

and applications identify we're -- embedded. where able over it dozens it's Looking of protocols to multiple

will newer a think profile those differentiation and complexity allow to early and to So, of for continue of enterprises accuracy. coverage again, breaches table least highlight well that terms We bring for the where we in strong and us awareness the high enjoyed LogXj and win competitive And of breadth in one that the really this issues differentiation rates. competitive is always see to nature us. and at I competitively. that the think the periods We've that bodes

Brian Essex

still same Got the is it. That's this And helpful. Steve, split?

Steve Vintz

It is.

it in -- the greenfield greenfield percent did of change not terms opportunities, In of opportunities meaningfully quarter.

best greenfield our So status certainly VM and yes, breed helping. opportunity, is and sizeable obviously

Brian Essex

helpful. Very Thank it. Got you.

Operator

question is Piper next of Please with Our your proceed question. from Rob Owens Sandler.

Justin Roach

This for guys. on is Roach Justin Hey, Rob.

to give more some we seasonality move the wondering in spending color was high? given in on vertical you Just about pretty quarter, and just the any differences last intentions into the see demand it seem the strength XXXX? federal if as in should environment how be think XQ you Should could given we saw here you

Amit Yoran

and and cyber. strength additional approach Yeah. We more much unfunded think, We overall And don't Steve, a both taking focus that -- continue administrations on unanticipated change color market. any opportunities. is will I I lean the We're And years, business. previous see in you funded also don't government large say, and to health see we'll with shown. aggressive federal I that? have of our know the see very on in pleased previous to we previous seasonality federal lot It's add behaviors. we in from don’t if a in continued have

Steve Vintz

said. well No,

Justin Roach

Got Thanks it. That's it guys. for me.

Amit Yoran

you. Thank

Operator

William next proceed is Ho Jonathan Our Please question. with Blair. from your of question

Jonathan Ho

opportunity does longer this around that security directory maybe dislodge and or Hi, opportunity. spear open give alternative be new good with of wanted with term? maybe I the to start customers using those not just I could to maybe maybe of active the just the go platform whether sense you an Can are a afternoon. commentary us your some out that another up tip of competitors guess,

Amit Yoran

they've them have they have, capabilities as to of it integrated in openness competitors for with us. locked now And very enterprises the into mention, been we're security that more a especially as is, the entrenched processes and years, think, with VM to market, contracts, multiyear been they've and In we other or where that in been Absolutely, VM has soon strong some those definitely bringing I instances, large engaging and challenging. is. or engagement, cloud displacing product there's

engaged, differentiator move then would find the opener. be we're directory active and entrenched And so relationship. natural becomes in accounts, to we once And broaden door a and try those a that the clear of types

Jonathan Ho

up give EP point, at question. then maybe a of this you quick the you a some color to are just that And Thank it. you. Can of percentage EP those trading are housekeeping well. with as customers sense starting or Got on us that maybe

Steve Vintz

Johnson. Hi, Steve. This is notable. It's

one I we the in record public us, is company, up new XXX called our quarter, was the year, as XXX or platform customers of a added best things new ever from for think we're larger a we that's or which deals. also out last net seeing and

it's And a So, VM. was in that keep here cyber our product so really And mandate gaining about mind, in really exposure, major assessment, holistic launched risk us. EP we than more for always was QX. traction

So, results pleased EP the we're with and the in absolutely early response.

the mid-market those that of some enterprise a to cycles, plan mindful with sales that portion lead of to is good platform price product and XXX market. a be new EP, or those really in the attributed customers, portion This sizeable Just of we right? is

really able first the be areas shorter commented where on impact the the we I pipeline significant, seeing earlier. cycles, You're such also with with associate is deals to and in have to which mid-market sales that type very

the attack we of as new more So, way for larger I acceleration to it's pave going business, more deals in think cover the team's areas surface.

Jonathan Ho

Thank Great. you.

Operator

[Operator from question. Please Our of proceed with Reback Brad is Instructions] Stifel. your next question

Brad Reback

have Lucky, I question, only one. Steve. Quick

calendar for XXXX, in line with should be about revenue growth growth? think you that As headcount

Steve Vintz

we R&D guide to XXXX. two marketing. sales investments than And growth. think, in what the that it's certainly think making, I going we're areas that to fair we're big are to in and acceleration given the the headcount that, growth, don't I We exceed headcount but say be and the going saw more so And

roadmap So, just as the well Accurics that's to innovation R&D, upcoming as more related for year, the here. acquisitions product and Cymptom the specifically the planned especially and given recently

what And know So, and return. investments sales certainly in there's in quota sales we that then on make marketing capacity, and in market a contained R&D. clear we that investments the side,

a momentum the have in lot business. of We

and year demonstrates execution performance certainly this that. our think I

-- sales a the and really of R&D. year, threat it gives lot a of the on do both wood quarter strong good a and and a So, to backdrop environment with us We strong of we're more marketing and so. certainly putting confidence behind heels

total last So those growth certainly year, experienced in and specifically than upcoming headcount what we the areas. year more in

Brad Reback

XXXX what you And us? remind was growth? Can

Steve Vintz

-- was don't line growth we in it lot in Again, in directionally disclose with overall in more revenue. probably but growth headcount,

Brad Reback

Thanks. Great.

Operator

Wedbush. next is your Please of Our from question Dan proceed question. Ives with

Dan Ives

Yeah.

question. one Just

So, with sales opener enterprises? And some a the door accelerates almost there EP, I the that mean, that is potential even how much of of cycles? larger a is Thanks.

Amit Yoran

two absolutely. with complex it's to infrastructure right? well, I'm me figure think for enterprises large you're you're are It's for cloud it's is, it this mean, a forces technology it's to with native from or automation I I building One in going conversation I've nothing my you're trying overall a really whether and cyber door how a forms. going struggling large out, LogXj enterprises, very state I risk. strategic use with, that a the and infrastructure opener helping the to thing to I'm more trying VM, just reduce technology perspective. EP. okay, and got or use okay, my do that what's this assess for looking other OT whether becomes when risk

so and of readiness and think fixing? I One about issue well, we with how is environment asset another the how helping a problematic, my which of in order compare doors way. the it should what strategic opening a from you're key understand, level. asset second So, is in of are do it's great type areas. those having and helps state when about other one more those talking this prioritize conversation EP, versus them all also for two enterprises, be large and about engagement to them helping concerned CISOs the analytic, and business And with have at conversation one types, okay, strategic big you're a to and can I which things is, an the more very a of I another, higher that So, unit

Dan Ives

Thanks.

Operator

your Please Cikos is proceed Needham Our and with Mike from Company. next question question. of

Mike Cikos

for Hi, and about My to quota-carrying rep the Thanks investments that question its I really good team. getting to on some reps. out back me to XX takes there reps, months here circles growth to year. average Tenable's commentary the think ramping XX% see XX% these ramp. the the and start to on of discussed the in bogie

separate for of reps or the selling products the entire that So, the was specific highest that is go-to-market, hires calendar these the then need portfolio? there carrying for for quarter, XQ, saw on we XXXX? overlay that a quarter reps any in sales And

Steve Vintz

Hi, Mike. This is Steve.

was We acceleration then more the in that do And sales and think the to in back think, out looking just that half given looking more quota I business So, marketing. I reps year saw year, the QX in XXXX. XXXX was quota-carrying we throughout we us on in is the but XXXX, expect investment confidence more gave of year to and capacity to first the than in your first than The and directionally of invested any answer year? question at yes. point the the other higher

question, Could regard your question. to understand I sure So, please? is to your I repeat first I second to the make guess with yes answer that. you it want

Mike Cikos

Absolutely.

need sales to team separate or go is at If overly the be sales to in AD, for and this around to the products a products entirety you're think into new you're sell EP, know about on. about able have there integrated is But the Cymptom I -- going sell there its of is really EP is any portfolio overall we So, question is bringing a the -- expanding team out that these these talking with the to and point? CS.

Amit Yoran

out about not and these Code and launching that to are kind also loosely -- EP as team security, and things. the We're our reps of the which does all CSPM difficulty] of and goes a fact not as portfolio. sales of EP. Infrastructure the I talks core and for cost include coupled And a saying, distinct and acquiring includes Kubernetes and ability [technical VM includes which AD was IO only sell series very definitely just technologies, definitely. there's and the core and container There's

it’s strategic more message. if So,

of you that, quickly to a core have unpacking very yet core or conversations engineer as level depth expectations. get a can start where might obviously Now a not rep requisite

manages about and and controllers which to enterprise, specialists, or talk some continue that environment. time will for can of control -- systems So, in parts really want have cloud to deep incredibly period team do we other that the the dive specific with or domain of the

Mike Cikos

Terrific. for Thank guys. the it. you insights Appreciate

Operator

question from with Berenberg Please question. Capital is next Andrew of Our Smith your Markets. proceed

Andrew Smith

months have you that taking have question. tax of demand last several I for XX just solutions Could Hi, to guys. across linked VM, which just great. of technology could demand directory, Thanks awareness AD those you been But my the solutions That'd and core Thanks. high OT. XX across the I products. VM, different know different driving profile compare there be if difficulty] core OT? [technical compare and active curious operational AD in to for been is the believe

Amit Yoran

super high risk. Super and high

in Now, we're threat environment. it's operating a high --

been operational you breaches, infrastructure us those JVs specifically out and operational against attack and calling out, into there've profile very technologies, some pipeline critical high about concerns as environment. technology called I calling some think

but when Colonial obviously it's well scanning bring OT as it the of systems we something Pipeline, were -- security to very of just other that high the down But that sort closely Colonial as table. the core and observation -- wasn't with or active a capabilities it VM out and profiling, of like of some cloud is you obviously, this look went So, IT on shut natural LogXj incredibly web part, compromise profile, at was systems exciting the of app the that root even capabilities, directory. at just heels beginning, sort that, at the

And so these completely of are all intertwined. things

operating directory identity also without and and assess these able and to which is are active true OT same You being aspects, other environment completely and IT. assess IT today in in cannot security meshed cloud the of

environments the exists as all things, way, manifests LogXj, OT breach, the which of and think itself it's whether we So, by vulnerability, in these OT profile high the well.

of strength All in visibility the provide for these of solutions, the platform. things our our but of for individual also -- type

Andrew Smith

Perfect. Thank you.

Operator

Yoran the closing question-and-answer remarks. over the to turn I call the session. We back now of for have end Amit will reached

Amit Yoran

us. just excited We're the opportunity to excited thank in of love future in quarter deliver And front joining very call. the and we excited we that us the acquisition fourth about I'd results forward the for about to to announced Look very the for about I'm Great. today, everybody were super XXXX. engagement. in able obviously

Operator

today's concludes This conference.

disconnect participation for at great time. have Thank and evening. may your lines You your this you a

Tenable (TENB) 2 Feb 222021 Q4 Earnings call transcript