TENB - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings. Welcome to the Q1 2022 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Erin Karney, Senior Director and Investor Relations.

You may begin.

Erin Karney

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

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

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

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

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

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

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

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

Amit Yoran

contributions QX, by accelerating Thank driven results. let enhancements, that, I'll We and theaters. the all continued touch our you, Erin. Today, outstanding management Exposure product acquire saw on quarter, our in Discovery first Bit me momentum, including our our exciting discuss agreement first progress With performance in to strength platform. products the financial our Cyber tremendous of QX and from

Our for quarter XXXX. strong XX%, we CCB the us which for growth was well believe positions

active driving add cloud momentum in a to translate our significant the Momentum to offerings integrated of to and Tenable.cs. environment. from business delivered increased exposure runtime. is customers to cloud-native threats customers. offerings. entire deploy as directory. as the alongside secure take Launching advantage our core the unified health platform's container for We're reporting, understand take controls include seamlessly and healthy and across our EP momentum environments durability cloud-native to confidence include single well unified into across This assets need high. solutions, have exposure and of for products as differentiation VM sign-off through platform, spending and web advanced seeing and with plans Tenable.ep this cybersecurity leveraging These accelerating, analyze portfolio, at advantage cloud all-time these new create to application continue Tenable.ad true model web security other risks such exposure are and We're and We rich and capabilities unique us cyber VM and is of single invest an platform, capabilities. that new our our security Tenable.io. immediately and search, enhancements capabilities role-based exposure address our Additionally, for our Tenable.cs, provides to and particularly easy our and expanding in data cloud people. the as to risk market and our capabilities of build their allows streamlined The our identity to licensing can customers a their APIs application comprehensive our approximately access exposures organizations access, other cloud

delivered also used detect to to and escalate exploit exploits of new Tenable.ot OT to attack updates and ransomware in We attempts indicators important devices. privileges to Tenable.ad nation-state and

earnings, threats, leader spending More development and aspect helping shows last capability. into digital reached investments can Our agreement value better a access the a cyber, Internet-facing across VM. their asset program. capability to and critical any for we scope the high-priority Discovering differentiated attackers systems. announced external and exposure larger of an business artificially for attack system for assessment acquire ever, our The in important customer's commitment reflected of insight this believe are that think starting Day. that blind service points into their services. product pathway gain to discussed new so every organizations allow a and is we years how attack into view assessment specific with Bit every security our essential highlight sits. an customers effective we the footprint our of security exposure, Internet-facing environment increased paths to this management in understand surface Investor we're any digital over of larger a TAM high where into age timing one than on few In gaining and discovery, Discovery, Internet concert couldn't footprint cyber consequences be must reduce We fragmented largely we've they conjunction for attack In regardless best-in-class and moving systems us it our for that with golden can tie with cybersecurity and to These they're attackers of with their steps ever-changing points technology, problem attribution full for will from assets attack the monitoring parts is many ultimately part that of to surface. business's

priority. our is surface external the For solution. This version of many value a products, surface new security of our CISOs, insight enterprise in top exposure of punch discovery included in this upgraded our Tenable.ep drive analysis automated integrated, the knockout be discovery Automated customers great including cyber is will be attack also will native of will attack and increased and for solutions. what adoption Tenable.se, and Tenable.io, cloud Nessus. of Once our

customers fast value the very has compatible to natural the exposure discovery a go-to-market our functionality Beyond with buyer data. to as and data help our absolutely that buyer capabilities SKU adding tightly will is We're of set advanced and aligned customers. excited highly new Discovery same the and basic management this assets. motion ASM surface of for our VM many existing Bit with a will incredibly offered a very these new context exposure attribution these go-to-market we time broader have customers, also and motion same is team. messaging, which understand provide the for about will critical of Attack

about little a talk bit me Let Tenable.ep.

bringing and environments, vulnerabilities, closing integration and clusters extended of security Internet-facing cycle Tenable.cs. of software vulnerability the that prioritize web acquisition by footprint findings include enables our inclusion Discovery we applications, and identity and of risk assets quarter, assets systems Lumin platform directory us the security management cloud via now identify, workloads, of the and and also and unified such open in adding assesses platform full Kubernetes management, During hybrid following beyond the resources, security active solutions a posture offers Cloud evaluate across Tenable.ep entire across for these EP comprehensive the IT, one Bit a management web across to customers. life into but cyber assets and exposure as digital and customers cloud cloud cloud-native application containers. Tenable.ad gateways, and cloud

and We're seeing saw our EP In of sector, as shorter, rapidly in they portion commercial are the addition, quarter it's the becoming large also occurring we embrace sales. Tenable.ep dramatic as cycles traction for adoption and we're Tenable.ep, with quickly sales growing continued leading enterprises where new well. a in in

grow. that concept need to in a years, and we then, we've exposure with talking exposure like introduced strongly some to aligned incredibly its we've When this new cloud-native pioneering on. includes as very is investors many and Gartner's risk. more the it analytic see CISOs. newly markets the it beyond and and importantly, architectures to native an exposure exposures plays and patching of infrastructures to assets expanded cloud surface we management, set been identities For other we insights cyber for wider discipline believe beyond been and have We cloud-native the mature traditional these data of mature believe of definition strategy market between as to recommendation with and despite attack to discipline. are sets exposure and years. applications. that assets, defined Further, Gartner's look in organizations than as vulnerability which the prioritize role Since rather into important management such a this and security was pathways, cloud We category, cyber of continues opportunity emerging manage well Tenable we in vulnerability web attack that is include and emerging expanded spot recent about security methods we've And benchmarking early markets management leader of pursuing and form and operational technologies and

to to planned risk. platform vision to our that assess our Bit enables exposure acquisition better management including deliver of will invest, We customers Discovery, continue on for and an the manage

business. I bit Steve, call want people before of I talk to the the side to our about over Now hand a

candidly, to area a while to fare As pandemic, fuel of a ability workforce. nurture always investors our asset culture is our an in of greatest continue a our out We strive company, long-term Coming great on. growth. the people. and that the asked time It's spend we to a building hiring effort thriving about the transparency lot many and And of we'll software necessary resignation. innovation how diverse

we efforts, in want had that our work levels our results QX, report I'm exceptional this Tenable. and in retention investments people also seeing to recruiting strong Our to and onboarding. year. hiring in to at We're off, pay happy People continue

into New market. over and I'll to directly very translate choice, efficiency now Steve products compelling Tenable recognized of has employer a become exciting and in results. with market attrition financial destination lower for pace culture call and our on talent further a the an great increased will increased innovation. turn a of commentary

Steve Vintz

Amit. Thanks,

the note for quarter, of XX% growth an revenue. results As Amit continued and EPS on highlighted provide will momentarily. our first earlier, are in today mentioned current we But are that I points billings, first, innovation measures delighted please with exception investment more financial in each the we all results discuss financial with calculated by distribution. and of these non-GAAP commentary

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

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

the beat that primarily sizable is already had of recognized current to of the growth the the this quarter was high XX%, value delighted very We for with note have innovation to million. current growth recurring a results is result consecutive customer deferred of revenue due XX% outperformance export Belarus prepaid market $X.X over of attribute the revenue government. to Please of quarter recognized grew in is the the internationally need This annual evidenced accelerating result change U.S. More from exposure a as the of This the a in billings. Visibility highlighted revenue. We is base calculated attack quarter started by our the VM, are in has was portion by as continued CCB customers in measure environment fourth leadership of the strength year. threat the ensuing activities. of approximately quarter expanded restrictions year-over-year. demand platform the XX% early for the was imposed that our last CCB and growth in This grew were in recognized inflection result QX cyber The as defined to heightened million both current North growth, as their our the which as these new which specifically, new in and business portfolio revenue revenue remains CCB reflected is and in product would revenue go-to-market in surface. sanctions been and large in America in a revenue this our largely quarters mid-market. deferred the contracts accelerating continuously year, map and termination CCB, portion Russia across in contracts very impact In XX% enterprise and strong year-over-year this customers quarter revenue. but increased model. subscription this on in percentage of little of in of our as as well $XXX.X particular, plus and quarter,

an rate Upsell the new now was margin, broader investments incremental expenses, with surface. that awareness renewals Tenable.ep, notably our acquisition sales from expansion in which cloud in although customers which risk over exposure public to robust In to increased growth now last identity the includes with support This quarter, LogXj, was than this benefited usage our their February. and in gross start compared seeking dollar include XX% to experienced above combined by for net increased related associated which substantial cloud products incremental part extent resulted our we from and I'll rates was to two also aided sequentially security, years. expenses quarter. in LTM what the existing a across terms our of XX% investment we in additional exposure was attack costs analytics turn Cost lesser historical to I'll platform. customers from in last in of QX. due quarter which with and product mix, that to infrastructure of the closed higher operating platform, Cymptom

This acquired newly we and launch to include expect help cyber and efficiently which visualize unified will mentioned As vulnerabilities, analytics risk expansive second and plan be path their environments. set benchmarking of year. analysis of in will earlier, we contextualization via hybrid improved more to better which attack Cymptom, exposure enhanced half of all of currently manage and Amit a customers analytics, the the across

to is QX in from and in added $XX.X quarter engineering was last million, was of consistent and portfolio, be incremental we which up R&D in the capitalized in Long hiring XX% the was higher was quarter. are team to for $XX.X we expect product as which the gross low Cymptom marketing these higher $XX.X connection impact QX, was and expense we term, indicated development related to in $XX.X quarter. increased to which and a still quarter. that our Sales compared in sales $XX.X past, as noted for sales other revenue our performance expense million short-term, by last As a to quarter we've the expense support growth. up compared investments Sales high which reps the and quota-carrying from quarter part R&D to It range. margin in commissions in investments, quarter. percent to future portion a marketing last costs should million draws the expect last wages, costs be but is quarter. expense of expense margins upfront as well engineers provide which XX% was Sales gross of scalability percentage to headcount the with acquisition modestly made million, a was includes the as million and support in expanding XX% in revenue more of marketing benefits attributed strong expense in G&A quarter. XX% million last XX% of with $XX.X software quarter. offset

particular, technology scale We investments and continue and business. information of in the resources, our recruiting, to make in in support to growth

compared end in million XX% other the I approximately QX FX As the the XX% our related to percent expense year the a and was quarter. $XX.X margin after remeasurement, which expense X% as just for this last as compared was from was and is $X.XX guided reflects to included of $X.XX highlighted. than which statement. in the expense revenue, Operating high last is Income million EPS of for items well to $XX.X operations is quarter was quarter, G&A $X.XX, full XXXX. last in this of income better absorbing quarter first which range, quarter

turn let's revenue million, deferred million and the Now to and lot XXXX. million quarter Accounts was million of receivable $XXX.X short-term was in of us $XXX.X including the sheet. which finished We visibility investments. $XX.X with balance gives deferred a $XXX.X headed revenue, total into current cash

We like paid the credit would cash cash quarter. million on Now interest to first in flow. our $X.X facility I discuss of

interest Consequently, Looking flow company, the well became interest area way target at us. XX year a of we ahead, we of interest at focus between achieving environment, been expense, our with of That reflects is of Striking the gross has of rates, high our and Last while Rule a the attractive our to a for Day outlined to our will flow, our we QX, higher our always XX we $XX.X we of are and XX% of and in an Rule we in on confident continue higher facility to which year, be acquisitions provided continue the rate end reset December. Investor has expense million to continuing feel increase million allowed we recurring provide the that profitability rate full and can low said, cash assuming debt to invest $XX.X B levels right without than continues a on margins when to which the are renewal growth previously which dilution attractive generate of revenue, floating $X.X balance will cash In business. us our Term capital, cost July. guidance free Loan generated unlevered shareholders. guidance. to fund million equity

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

million, the the the in $XXX million income non-GAAP to assuming range million, interest income second assuming currently the $XXX to the remarks discuss million; $XXX in to $XXX range million. million and for earnings expect currently to $X.XX, to $X million, to the earnings operations of $XXX Non-GAAP for to the to quarter, $X regarding we diluted $X of be to shares to operations non-GAAP $X.X expense we to in income diluted be full year, be income fully in provision million net shares range of $XX.X million in of current to our assuming a million the $XX.X non-GAAP million to taxes the XXX.X the $XX be interest range to be to range non-GAAP million of range $XX be a For I'd $X.XX, revenue non-GAAP million, of revenue income in per to million million net $X be of $XXX XXX.X provision in from of And fully range and million; $X.XX range million million; $XX.X $X of outstanding. expect million, range $X.XX diluted taxes few from of to calculated assuming $X.X the million of of outstanding. for expense weighted weighted share like to a diluted of per share average be income average today. in be to in guidance billings

spending more contemplates such guidance a In topline as from environment, growth, reflecting reduced terms impact of the normalized our LogXj. tailwinds

attack in on second close the half and expected have Also, is investment expense separate in on an the in higher not the reminder, until to in quarter into in operating later impact the definitive agreement This and something today acquire our second outlook which discussed the a and year, first significant surface announced lower for entered margins The expected reflected we half company. a operating outlook our results QX hiring for the seasonal of to QX. as quarter. towards therefore is not press and in call for acquisition is to a us Bit of management year. is financial last flow a release, Discovery, is we the weighted typically margins As

Bit we in of loss. million second of not are the in of closing the Discovery to In Discovery to start today. we be add of Bit are the delighted half to significant, non-GAAP the notably the quarter. the I'll great of CCB, good summary, call for is to million most reflected $X $X year, providing turn to some net off We're revenue $X the impact latter Amit with outlook to and about now the For not the $X comments. today. of really million outlook expected feel year, results but we acquisition a we our part for to The back expect year, million and is the

Amit Yoran

Thanks, Steve.

excited invaluable others now delivered increasing to at road our that see that QX about in about to thrilled cyber exciting, bringing We make. We're exposure sets are the increasingly open are in momentum to investments path you solutions. platform unified in our enabled given term. as us of analytics strategic for questions. and made is into across continue have of such the with and see analysis organizations JPMorgan, business, the This by call the in strong our the coming many particularly weeks. data role differentiation long We many positions capabilities and and levels RSA differentiated that results the hope well VM. believe We conferences ahead. incredibly We core the our Blair We up we to for we've solutions and management William like attack strategic on placing continue

Operator

question. your Hamza Morgan [Operator Instructions] Please proceed line from our with And question first comes the Stanley. of Fodderwala with

Hamza Fodderwala

it's to to guidance? question. the my $X is Bit know want to that $X for just in your I that. million Discovery from clarify million Thanks included CCB And good taking Steve, not

Steve Vintz

Correct.

Hamza Fodderwala

Great.

Okay.

sure. making Just

infrastructure There's sales of OT start sale. these you're those on us what you top know about security been you seeing just for for Amit. side? about that's Because the fairly point? an product it's to contribute days. to are been are evangelical been and question in the And you update it. at line past, So been I you give the this long I see on starting more you've shorten? securing - an Are maybe seeing to me a cycle lot more Can one critical talking of really know sales it cycles talk

Amit Yoran

are. We great We're - seeing question.

and are seeing moves And understanding team the we've of believe move We as potential OT market customers customers that does seen - And requirements. We speed last cloud. and this very is adoption of greater have it increased to confidence all with as very the along, deliberately couple think platform. over importantly, strongly market. see starting said level the at and the of just of of OT a we're long-term I quarters, just that in sales OT engaging we in this on the

the has good, quarters. and are So indications certainly, been the in momentum recent building

Operator

Please proceed comes Goldman Sachs. question with Brian line your the with of question. next Essex Our from

Brian Essex

with the revenue. much question. marketing investment I see will we the coming year, great prior Maybe, And for is driven upside same taking to the be marketing you can business? Where to wage be what as think potential expected in to that from? quarter, back might Steve, help ramp. where and one sales that inflation, how expect trend for into the of like about of in last we that question. a sales understand you take other percentage us continue to acceleration to how How plowed that revenue Thank spending I R&D R&D CCB for impact? versus and items and about And to expected momentum is spend the might should rate and if regard the and think, commentary you with had,

Steve Vintz

Sure, first first of a reminder, for towards And as Well, year. is we and weighted foremost, hiring us the are half typically and investing investment year. the this Brian. plan our

so year. some result then the which QX in flows modest of And second half operating to will margins more in seasonal there's higher and business, margins the in the

we the are market. on and As Amit seeing adding commented competing call, great success in earlier headcount the this

lower. retention So our hiring of certainly is expectation and ahead trending is

added think we've our engineers the part I products of new continue that's first to boding and also We're the for of innovation. - year. in early to well well, continue the adding So ability sales add our and capacity pace as

the going So leverage early of that year, first second fact hiring in year, the I revenue that growth think we're of the half the forward, throughout half from will we margin the CCB. obviously, And of year. will the leverage the in expect continued doing the drive come the onset in then

in sustain overall, we're that So growth. print confident good very feel making QX pleased with about and investments for the outlook, the long-term to the

Operator

Our next question Sandler. the question. Please your proceed Owens comes from line Rob of with with Piper

Rob Owens

and Great. this. the speak billings the low you one to outstanding. Can And strong the to like composition of sticking guys kind quarter question velocity seemed of thing in overall? It days like there was

business deals of of net add velocity how one because XXX,XXX ACV over things out quarters in large curious, it's your your versus played terms Just smaller customers.

and So in you're just the what the seeing pipeline? composition

Amit Yoran

growth. make new customers. in XX metric pipeline X-figure any net the and Well, it's We We quarter. can with opportunities. enterprise over I very pleased The we deals grew fourth important CCB platform new as upsell is XXX mentioned we're carry in we mid-market and our for one quarter I added, consecutive large you new comment We XX%. to one of earlier, think, is added note, the between over optimize accelerated that quarter-to-quarter the results which from and will This don't opportunities customers. company that between

expanding adding results pleased as and are we the for we're of We're that with customers subscriptions well. have their quarter. even over customers, So overall, the lots figure actively X,XXX, X-

Rob Owens

quarter. It's from very a linear say was safe Steve, it to though, metrics, the

Steve Vintz

start can our sound the like sales. got we XX% any Yes, last off year. quarters the a to over represent it company multiple strong to But software really for of total

our flow quarter. it characterize for So as I typical would the

Operator

line from your Cikos of Our proceed with Mike the question with Please comes Needham. next question.

Mike Cikos

Thanks here. to this couple for adds. the here a questions regarding taking the comments customer Q&A of And in coming just back

these but we enterprise about that One you to struck new me QX by XXX from customers XXX of when or declined the customers. QX added the were have historically about now, talking just things velocity quarter-to-quarter platform

that ask macro as So as it about one struck see good seeing guys I separately been I revenue the lot to me that to There's far Europe. made of there. about the you're think things customer know your you a XXX? by that about XX% guess, I about only this declined want quarter. have that's base guys environment I did, that you additions of today.

front guidance you, some from the Just curious, QX? seeing as anything month your you now thoughts, coming but what the lines Obviously, just curious incremental, good on are a into today? especially on we're we have

Amit Yoran

from Yes, you. Mike, a very hear continued great certainly have progress. confidence We seeing the demand. degree strong in quarter of and We're high to

taking Homeland organizations it's defend one amount we're are inclusion need cyber. And - the to at different every have headlines a world, initiatives, which whether there's super look the very specific and these DCHQ heightened any warnings the exploited, fundamentally But being of high-profile a you in whether highlighting news it's happenings, what happening almost there of around Security, other today, legislative breaches, it's alerts if of a whether approach. We around again, Department not coming to out themselves. number of proposed There's and protect demand and vulnerabilities environment. just tremendous do is information, governments

and positioned for So market we're continued feel well forward. very we're growth super drive confident the in like

Mike Cikos

of year think especially spoken back. give comparing least guys progressed at reps have the we reps. on you sense accelerating for I hires if of if about we're cycle quota-carrying that know still I on QX a - us the just quota-carrying I that? are you? for versus follow-up you directionally, But how of would a the producing sales streamline Can last QX has process could the hiring, over typically the this year, Terrific. And have guess, reps maturation does those your that progressed? out and platform sales start your then a I XX-month sales on mature be, there or how way quickly reps get timeframe. with And and mature in hires the EP, how can any And

Steve Vintz

Yes.

XX. ramped when month that hire with a regard our would that ramp, is expectation So sales be fully to they we in rep

growth. also levels to saw notably And than it's last the rate we fair say hiring of in half think first Last acceleration So - the note year. as in the faster to growth. that the growth was year, year. expanded product well. we're has acceleration with CCB We're the is obviously correct. portfolio which we're And of CCB XX% reporting throughout XX%. with of The that hiring I is important that Today, seeing coincides

us invest, well. continuing to confidence as and us productivity the gives the confidence increases expect that it gives in to So

Operator

line your Barclays. question. of comes question proceed with the Next Kalia Saket Please from with

Saket Kalia

to EP love to what about lot here. products Thanks a my licensing - of EP bit for Can deeply. sort And sort Amit, a for what customers? additional using of the just Tenable.ep customers about within being attached taking maybe talk products you from are model, choose finding have you customers are are obviously, you, VM? little within I'd just commonly easier or of that beyond products most received how more additional talk questions is by that

Amit Yoran

Saket, well, - hear from We great Yes. you. to

gravitating about excited It product we're we noted last right that think, came the seeing are that EP. path that a out, EP people EP of very our rapidly capability vision force I April gives as year. offering was procuring the customer well with gate of the buy the the people And out we're into the sales base, is And only platform extremely lot broader for more to that and bringing the we're as as table. both We - momentum gives preferred toward flexibility. really

overall added of but attack and iterations, Lumin. was offering strong. core adoption be probably earlier we In analytics announced notably and to And full management most capability the product and APA capability capability Lumin, the announced security perspective. uptake to added Tenable.io lines, the its Cymptom, those February, an application Tenable.ep. Directory EP included security well or analysis Lumin, in across saw from broad scanning we and between And So VM the as that a we cloud Lumin pretty we've web capability path to would vulnerability container added acquisition Active as capability,

is the continued are and in for Tenable.ep We're even seeing in sales So seeing the more I'd traction enterprise, midmarket, notable the now, how say, right team certainly enthusiastic. wins but the platforms over being to the usage EP, being exposure eye down next solutions newer or newer break will on of added a the quarters. that the keep close we'll with couple

Saket Kalia

Staying topic for non-EP guess, Got you EP they days. again, talk of what But makes spend run my And the how for rate of importantly, versus - I early EP. customers, you more much what coming very follow-up if it's about Amit's sense? it. customers? on increases just helpful. are the of Steve, you. still And that from to sort That's point, new seeing business EP? is brush, maybe you from broad can just

Steve Vintz

QX today, later, of Saket. XX our year. We EP That's enterprise And note. Yes, of to new absolutely, total it double-digit important represents last percentage sales. a launched in just months

coverage of a platform exceeded that grow And the and out our that unified is gate. Amit time. includes our risk expectation So of multiple over percentage EP, asset expectations as is continue types. will earlier, to it's here mentioned

their able So are of more customers to attack assess surface. areas

seeing actually EP also our prices standalone more selling offerings expectations notably go go as our will EP. could XX% that to higher higher in and to that VM be we're we for capabilities, offering, more higher result, a versus higher include As specific. selling continue prices And

Operator

Please proceed your question next Reback with from with Brad our line comes the of question. And Stifel.

Brad Reback

lot. the Thanks But the not a sure year. for. I'm in about the you you this mentioned is that again making are remarks guys investment Steve, here prepared question had analytics

opportunity going should platform there the just forward, look the we there be that? retention should bundled directly it is - is forward? and an to Or going with we expect to monetize help rates As

Amit Yoran

key both. capability there. a a the And of itself. I'll it's this analytic lot platform think including Amit. certainly is is in We answer differentiator. Yes, are in We the jump

functionality, functionality we dashboarding, of control So unified strategic types being think, is having core all Lumin role-based access EP, part a things. reporting, differentiated of of those

context there adding on for facing separately the market, of which And a both. and on to much platform, may then our anticipate separately much that richer is quarterly be enterprise for probably every to and or facing. more we room be context it basis into that that attack platforms We assets, that capabilities And is embedded as and we'll for have as also Discovery, in-depth externally and bring basis. something we for. sold enable we a an form separately. something to are is may add-on charging be that then sort around asset to specifically analytic more attack more charging path separately, think to look monetize surface be at is We much management the new real-time we charge that think that, sold externally how of do capability analytic a

Operator

proceed Fargo. Our question from question. the with next line comes Please with your Nowinski of Andrew Wells

Andrew Nowinski

spring to good is contributing a you over guidance you seeing in quarter. than for X-plus feedback now the not say community. the may one you just like relative did the bet competitive I'm that to competition a similar the growth, reseller that all have years, LogXj much are portfolio on your other of advantages Congrats these vulnerability. said out received have it the there? broader the largest end given that aided LogXj you're are the EP in shell, of our think with from necessarily have looks This competitors consistent which less than we that which to QX, in inflection do I'd pretty pretty vulnerabilities your seems the widened And last high wondering your you if

Amit Yoran

one capability, for does much certainly these add raise think to broader We opportunity. that of professional profile each fair. VM a that's requirement we're pursuing incrementally but around think I awareness vulnerabilities that the higher

around in workloads, assets we as protection directory our a understanding so with well surface, ability helping and specifically infrastructures continued holistically. see and to VM them cloud-native our understand what's R&D, investment differentiate the as active And risk and more identities of and attack assess continued in the customer's product capabilities, broader both happening of core our them helping

cyber as we're So continue becomes a ourselves to and like going enterprises, ourselves. understanding for practice to urgent exposure distance to and differentiate feel more be risk we able

Andrew Nowinski

year? seen win versus of you they examples have you And have improvements last where relative the actually, to competition maybe rates were or in do your

Steve Vintz

our The rates yes. close our know go and opportunity, dramatically when answer we is And an on is This first rates short we're higher. win Steve. when in

includes new So some increase today, to but not only of that quota and opportunities generate demand efforts of the continue to us. investments higher added levels capacity and for you're seeing go-to-market marketing create

we're overall, very pleased. So

for it's and out our year. the in also and over playing a the quarters, this story is think I role the playing of outlook in past revised couple growth our

Operator

line your comes with Please Powell from of question question. proceed next Our BTIG. Gray the with

Gray Powell

the quarter. Congratulations on

a side. my Just couple on

want developer So year shift this the or hearing to last. a just you just one security we've trends bigger It of about been left is it. whatever theme or like call that seems than

you and within you an inflection that think that Infrastructure in And how about we have should as demand Now Code CSPM CS, product are there? seeing set?

Amit Yoran

in we of first all, Tenable Well, that early integrated market Cloud in product Accurics and We bringing QX. early the market. do as Security launched Tenable I acquisition to guess, we're in in to QX, the product our

That's growth, brings and of operates cycle. table. by of with of the early piece software in which So terms of usage engagement, in of Accurics product's terms caveat continue in and customer great open-source the how in is everything pipeline Terrascan, life momentum terms it saying we that see growth to to the

are that that that matures, indicators And line the on right all is So track. have the market we high product as expectations.

Gray Powell

And other next All your six be And today the Fed expectations versus then question about just do what last would right. the just time are you opportunity U.S. how feel year? sense. the months? the Makes for this over

Steve Vintz

I sector about public really think feel we our good opportunity.

making increase the investments the we very on and specifically of also comes IL Fed sustain and and there. have the that predominantly even our list lot a is back sell sector, XX% that is also of revenue footprint into of we some can newly to As can our public from you is healthy, OT then approximately this we market and year which leader And Spending products we're the sell. U.S. Federal. know, we're environment authorized

quarter from quarter, a didn't closing we deal. this like large, This benefit really sizable

business the public can very Sometimes be chunky. sector and

ensuing of we those working quarter, pipeline, that, the see didn't This and hard quarter. to the over close there's opportunities but we'll in lot be a

Operator

with Please of line Ho the with from Jonathan William comes question next question. your Our Blair. proceed

Jonathan Ho

I as to and well well. of a clearly, that standpoint, differentiation little a hot the wanted you're mean, space the a just thinking understand this ASM bit to Can is bit well doing few mean companies how from more a as you maybe about a from talk with of rest the a private quite you differentiate I this about are as intend area. what acquisitions could number little group? competitive how about

Amit Yoran

tech cyber management question, Great as exposure from intertwined Jonathan, Yes. service a that is with to the market discipline. management and hear believe tightly you. We VM and great very

of folks messaging, a and the attack And closely very are intertwined. types are see management leverage. alignment go-to-market in of VM use tremendous that positioning, types resources technology as so surface well interested that folks We think we the of as

exposed vulnerability looking a the you're factor. whether is priority is one asset high at critical and If obviously to particular exposure, Internet, not or

we We with announced quarter. very tightly our last also analysis believe that fits it well very and that path capability attack

looking are that then possible exposure So not high-value points which way only entry the but looking lead at assets, what to high-value asset. you could at

the for of attribution So number Discovery tightly accuracy capability. their particularly about a reasons, aligned. of it's excited We're including we Bit think

all assets at team looking to ascribe is XX,XXX and organizations, as to of have scale you particular type we a much Bit and quite their around strongly achieve what beyond imagine, task. complex Discovery customers assets just being have deeper believe done to discovery. assets We to accurately a upsell might as and those particular Internet able context the of So really capability this bring ability their ability still in

the to positioned ASM right in think we that asset. We space. today the but this is us. disrupt - exists the the it's well We extremely we're dynamic for think think So asset radically right

Jonathan Ho

some you to into it different or that to given competitors to the maybe accounts adding of spear follow-up, new your just it. you see some incumbent are break the And direction don't new maybe you just as that go have? help at to as these tips add portfolio, this from new the as Got you capabilities a EP start maybe to potential a do leverage a capabilities maybe

Amit Yoran

these areas, accounts, indicators early come about the with be be think generate lead from or for of definitely definitely of us see specifically some this XX,XXX-plus would able have in which cloud over bring exposure fastest to monetization believe capability. have and or it been recent broadest OT to been customers said, swath some to and we'll with to newer that ASM other or time, and we pull-through our functionality We - able product we AD for have that to our periods. lines for able That lead if director lighthouse the other newer achieve active an VM of way, time the And and our existing solution you capabilities will, customers.

And spear as future, but that for the us. primary of near the can tips certainly be looking so we're for at other lines track the believe these product

Operator

Wolf the next your with line question. Our Research. comes proceed from of with Tilton Please Joshua question

Joshua Tilton

And a throughout playing that mentioned LogXj bit the business a the I for this was of kind benefit should year. - that that of the vulnerability we're given quarter, of the a but benefit different you of acquisitions. also subside here recent rest the understand kind Tenable

should about CCB quarterly the we the of throughout So how you typical maybe just year the way versus think Tenable seasonality us can there year? rest understand is any help maybe a previous

Steve Vintz

Yes.

fourth the to in what than quarter. with did LogXj, see QX, is some extent we to benefit So although in we regard correct, that a lesser saw

follow due to our confidence is CCB strength So acceleration right? quarter tends our our as us level well. is I to of growth, the normal business, execution obviously, fourth raise in be outlook to new market. and our of renewal. transact And The for the we'll overall think this strongest of our the this both of we year terms giving And seasonal expectation the that quarter is our quarter seasonally patterns that business

it will that in And we've follow so flow our prior expectation seen years. seasonal is typical a

XX% guiding guidance the this to growth. call, to we guided last to CCB on call, this so the And at we're XX% XX% XX% if On look growth. year, to you

$X the Discovery, called raise release million which regard QX, out we it's excludes of in the think in from increase in that million today. delivered an to specifically CCB, $XX I of Bit press that any $XX million with we contributions is

there's we patterns feel our the on about the to regard unusual of business. overall, comment nothing now. we And seasonal the So with really to call that good want business

Joshua Tilton

to for those this we of months any in contribute it's what the gave businesses story. first when to And Great. given CCB know relative end maybe differently the are CCB you number you year, about guidance But at I solutions year, guys exposure five about guidance will when still year full are thinking XQ? the the we the early think almost into

Steve Vintz

Yes.

And capability. which to they're look the path of case it's important just to haven't analysis, will mode. of even in the in in things, case think of ramp even at if it's these starting we're know, I Cymptom, Accurics, - And and you like some still is second Cymptom, the happen launched as year. then the sell attack in the product Code we the Infrastructure half that of Accurics

sell of that to monetize new the will forward. as really that, our some And feel products those and to is second It will year, expectation this our year. that our growth of So then to of about well. And half into is organically contribute continue bring grow we outlook latter in the part hope year. and guidance our also our ability and products going that the is new some the market towards good of tech the obviously, more to factored

top So the and think the line that in today I of you're acceleration seeing growth. continued

Operator

Kessinger with Please proceed with comes D.A. of question Davidson. from line the next Our question. your Rudy

Rudy Kessinger

to quarter. in the of is from if the a back last of the outlook million for in million Thanks ahead on of quarter, by year. $X.X revenue revenue exclude couple you even of for contracts. that, But only your revenue years, the beat million raised had over pull $XX I I forward million want Russian questions. know the largest looking which still - again, $X the $X.X guide, my taking ask you you the one

there you by on puts what can a past bit a additional You takes color any revenue $XX did million than seems flow-through beat give the CCB in into and went like more. the raise guidance? the less or But it of QX. Is bit

Steve Vintz

we $XX tune you mention, raised race, of had the and by we No. to and beaten for did our CCB back a raised And $XX million. outlook we million, as revenue

is of in what we through. the deals there we that in terms most of of a revenue. and are saw, every that Keep sometimes flowing you So delay close commencement mind

can that outlook And timing race. bit that so we're be lot about But really overall, good well. a It's beat today revenue feel on a the giving in feel of through we the as about of the there. the very a flowing the difference early and good year, We're we side. little in still

Rudy Kessinger

And can last incremental there added, you quantify I guess, and Is capacity sales this just way to both plan a it. add that any Got year you the follow-up. year?

Steve Vintz

past - about on having And the think product that's it's do of hiring We do much it's growth. platform. we've of investments disclose to in number quota-carrying are made we're impact with and front broader towards say the what But a happens good also exposure sales feel don't reps. of that our an obviously, their of higher quarters. weighted couple go-to-market coincide over the the we is year. plans levels of We more productivity. the success our the We driving And portfolio

weighted that the we're decisions moderate make expectations. of going I hiring and the in look is of the the expectations as get that XXXX front closer half, we'll at about of towards of We're are So to to as even exceeded then and discussed, year, second is to latter that part levels half we that the levels will towards our and year. forward hiring continue going A hire. lot

Amit Yoran

done concludes I events. I we're your time. to and seeing forward discussion. went, upcoming at don't look where look of the This operator folks any forward I our time the call. but Anyway know continuing appreciate think on to

Operator

that on difficulties and end Unfortunately, do Ladies this today's Q&A and does technical session the call. happened. for also apologize are the conference. they still just concludes gentlemen, We the

technical at You for has once participation. Thank your time. difficulties for you lines the this And again, we may occurred. your that apologize do disconnect

Tenable (TENB) 27 Apr 222022 Q1 Earnings call transcript