Financial Performance - For the quarter ended March 2025, Tenable reported revenue of $239.14 million, reflecting a year-over-year increase of 10.7% [1] - Earnings per share (EPS) for the quarter was $0.36, up from $0.25 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $233.62 million by 2.36% [1] - The company delivered an EPS surprise of 28.57%, with the consensus EPS estimate being $0.28 [1] Key Metrics - Calculated Current Billings were $215.36 million, surpassing the average estimate of $182.09 million based on seven analysts [4] - Subscription revenue reached $220.44 million, compared to the average estimate of $215.49 million, marking an 11.5% year-over-year increase [4] - Revenue from professional services and other was $7.14 million, exceeding the estimated $6.57 million, representing a 15.8% year-over-year change [4] - Revenue from perpetual license and maintenance was $11.55 million, slightly below the average estimate of $11.71 million, indicating a year-over-year decline of 5% [4] Stock Performance - Shares of Tenable have returned -5.4% over the past month, while the Zacks S&P 500 composite experienced a -0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Group 1 - Tenable reported quarterly earnings of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, and up from $0.25 per share a year ago, representing an earnings surprise of 28.57% [1] - The company achieved revenues of $239.14 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.36%, and an increase from $215.96 million year-over-year [2] - Tenable has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Group 2 - The stock has underperformed, losing about 15.9% since the beginning of the year, compared to a decline of 6% in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.35 on revenues of $239.98 million, and for the current fiscal year, it is $1.50 on revenues of $978.16 million [7] - The Zacks Industry Rank places the Internet - Software sector in the bottom 43% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - The company reported revenue of $239.1 million for Q1 2025, representing an 11% year-over-year growth and exceeding the midpoint of the guided range by $5.1 million [28][34] - Unlevered free cash flow reached a record $87 million during the quarter, influenced by seasonal timing of collections from Q4 sales [32][34] - Gross margin remained stable at 82%, consistent with expectations, while the percentage of recurring revenue was high at 96% [28][29] Business Line Data and Key Metrics Changes - Current billings grew 9% year-over-year to $215.4 million, driven largely by Tenable One and cloud security [27] - The company added 361 new enterprise platform customers, with a net dollar expansion rate of 108% [27][28] - The company secured significant wins, including a major federal contract managing over 1 million assets and a 7-figure expansion with a global financial institution [20][21] Market Data and Key Metrics Changes - The company noted strong momentum in exposure management, particularly in the public sector, despite macroeconomic uncertainties [34][35] - The competitive environment showed historically high win rates against traditional vulnerability management players, with notable 7-figure deals [52][54] - The company is seeing increased demand for integrated solutions that combine first-party assessments with third-party data [22][23] Company Strategy and Development Direction - The company is focused on expanding its exposure management strategy and enhancing its product offerings, particularly through the integration of AI capabilities [12][88] - The strategic priority includes consolidating vendor solutions for customers and enhancing the Tenable One platform to provide a comprehensive view of risk [19][22] - The company aims to leverage its competitive moat in exposure data to lead in AI-powered exposure management [12][88] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the outlook due to increased macroeconomic uncertainty and potential disruptions in the public sector [34][35] - The company anticipates longer lead times for procurement decisions, particularly in the public sector, while demand generation remains strong [45][71] - Despite uncertainties, management reiterated confidence in achieving operating income and free cash flow targets for the year [47][34] Other Important Information - The company completed the acquisition of Vulcan, which is expected to contribute approximately $5 million to growth, primarily in the latter half of the year [106] - The company repurchased 1.6 million shares for $60 million, with a total of nearly 4.3 million shares repurchased since November 2023 [33] Q&A Session Summary Question: What is driving the incremental caution in guidance? - Management noted ongoing macro uncertainty, particularly in the public sector, and acknowledged strong demand generation despite the cautious outlook [42][44] Question: How is the competitive environment in vulnerability management? - Management reported historically high win rates against traditional players and noted strong performance in securing large deals [52][54] Question: How does the acquisition of Wiz impact the cloud space? - Management views the acquisition as a market opportunity, noting increased activity and interest from customers seeking alternatives [58][60] Question: What are the strategic priorities for the next 100 days? - The focus will be on expanding market opportunities, enhancing the exposure management platform, and leveraging AI for better insights [84][88]

Financial Performance - Revenue for Q1 2025 was $239.1 million, an 11% increase year-over-year[6] - Calculated current billings for Q1 2025 were $215.4 million, up 9% year-over-year[6] - GAAP net loss for Q1 2025 was $22.9 million, compared to a net loss of $14.4 million in Q1 2024[7] - Non-GAAP net income for Q1 2025 was $44.3 million, compared to $30.4 million in Q1 2024[7] - Total revenue for the three months ended March 31, 2025, was $239,137,000, representing a 10.8% increase from $215,961,000 in the same period of 2024[33] - Net loss for the three months ended March 31, 2025, was $22,935,000, compared to a net loss of $14,386,000 in the same period of 2024[32] - Non-GAAP income from operations was $48,677,000 for the three months ended March 31, 2025, compared to $37,008,000 in 2024, reflecting a non-GAAP operating margin of 20%[35] Cash Flow and Liquidity - Cash and cash equivalents at March 31, 2025, were $460.3 million, down from $577.2 million at December 31, 2024[7] - Net cash provided by operating activities was $87.4 million, compared to $50.3 million in Q1 2024[7] - Free cash flow for the three months ended March 31, 2025, was $80,230,000, an increase from $47,129,000 in the prior year[33] - Forecasted net cash provided by operating activities for the year ending December 31, 2025 is estimated to be between $256.0 million and $266.0 million[43] Customer Growth - The company added 361 new enterprise platform customers and 54 net new six-figure customers in Q1 2025[7] Acquisitions - Tenable completed the acquisition of Vulcan Cyber Ltd., enhancing its exposure management platform[7] Future Projections - For Q2 2025, the company expects revenue in the range of $241.0 million to $243.0 million[5] - Forecasted non-GAAP income from operations for Q2 2025 is estimated between $43.0 million and $45.0 million[40] - Forecasted non-GAAP net income for Q2 2025 is projected to be between $36.0 million and $38.0 million[41] - Forecasted free cash flow for the year ending December 31, 2025 is expected to be between $238.0 million and $248.0 million[43] - Forecasted unlevered free cash flow for the year ending December 31, 2025 is projected to be between $265.0 million and $275.0 million[43] - Stock-based compensation for the year ending December 31, 2025 is forecasted at $196.0 million[41] Financial Position - Remaining performance obligations totaled $882,245,000 as of March 31, 2025, up from $742,411,000 in the prior year[33] - Total assets decreased to $1,693,577,000 as of March 31, 2025, from $1,742,119,000 at the end of 2024[30] - Total liabilities were $1,310,416,000 as of March 31, 2025, compared to $1,342,165,000 at the end of 2024[30] Profitability Metrics - Non-GAAP gross profit for Q1 2025 was $195.856 million, up from $174.680 million in Q1 2024, reflecting a growth of 12.0%[39] - Non-GAAP gross margin improved to 82% in Q1 2025, compared to 81% in Q1 2024[39] - Non-GAAP sales and marketing expense as a percentage of revenue decreased to 36% in Q1 2025 from 39% in Q1 2024[39] - Non-GAAP research and development expense increased to $39.017 million in Q1 2025, up from $32.586 million in Q1 2024, representing a growth of 19.6%[39]

Core Insights - Tenable Holdings, Inc. reported strong financial results for Q1 2025, with revenue of $239.1 million, an 11% increase year-over-year, and calculated current billings of $215.4 million, up 9% year-over-year [6][7][34]. Financial Highlights - Revenue for Q1 2025 was $239.1 million, compared to $215.9 million in Q1 2024 [6][24]. - GAAP operating margin was (7)%, while Non-GAAP operating margin was 20% [6][39]. - Net cash provided by operating activities was $87.4 million, an increase from $50.3 million in Q1 2024 [6][32]. - Unlevered free cash flow reached $86.8 million, up from $54.7 million in the same quarter last year [6][34]. Business Developments - The company added 361 new enterprise platform customers and 54 net new six-figure customers during the quarter [6][7]. - Tenable completed the acquisition of Vulcan Cyber Ltd., enhancing its exposure management platform [6][7]. - The company released new capabilities, Identity 360 and Exposure Center, aimed at addressing identity risks [6][7]. Financial Outlook - For Q2 2025, Tenable expects revenue in the range of $241.0 million to $243.0 million [5]. - For the year ending December 31, 2025, the company anticipates revenue between $970.0 million and $980.0 million [11]. Market Position - Tenable serves approximately 44,000 customers globally, focusing on reducing cybersecurity risks through its AI-powered exposure management platform [9].

Core Insights - Tenable has appointed Eric Doerr as Chief Product Officer, bringing nearly three decades of experience in security product development from companies like Microsoft and Google Cloud [1][2][3] - Doerr will lead Tenable's global product organization, focusing on strategy, innovation, and execution, particularly as the company prepares to launch an expanded version of its Tenable One platform [2][3] - The appointment aligns with Tenable's momentum in cloud security and its vision for unified cybersecurity management across various attack surfaces [3][4] Company Overview - Tenable is recognized as an exposure management company, aiming to close cybersecurity gaps that can undermine business value and trust [5] - The company serves approximately 44,000 customers globally, providing an AI-powered platform that enhances security visibility and action across diverse environments [5]

Market Reaction - The stock market is experiencing a significant upward reaction due to Trump's commitment to retain Fed Chair Powell until the end of his term [1] - The market is also responding positively to potential options for de-escalating the trade war with China [1] Analyst Background - Gary Alexander has extensive experience covering technology companies on Wall Street and working in Silicon Valley [1] - He has served as an outside adviser to several seed-round startups, providing insights into current industry themes [1] - Alexander has been a contributor on Seeking Alpha since 2017 and has been quoted in various web publications [1]

Core Insights - Tenable Vulnerability Management has been recognized as the AI-Powered Vulnerability Management category winner for the 2025 Cybersecurity Excellence Awards, highlighting its leadership in the industry [1] - The solution is designed to help organizations proactively identify, assess, and remediate vulnerabilities across an expanding attack surface, utilizing machine learning and advanced analytics [2][5] Company Innovations - Tenable is innovating its use of AI to enhance customer efficiency and resource allocation towards preventing successful attacks, as stated by the co-CEO [3] - The company has introduced several AI security capabilities, including the Tenable Vulnerability Priority Rating (VPR), which uses machine learning for dynamic risk scoring [6] - Tenable ExposureAI offers generative AI capabilities for faster analysis and decision-making, leveraging the world's largest repository of contextual exposure data [6] Upcoming Events - Tenable will be present at the RSA Conference 2025, where the co-CEO will deliver a keynote address on the future of risk reduction through exposure management [4]

Core Insights - Tenable has appointed Steve Vintz and Mark Thurmond as co-CEOs on a permanent basis after a successful interim period, reflecting the Board's confidence in their leadership [1][3] - The co-CEO structure will allow Vintz to oversee product, cybersecurity, corporate development, and administrative functions, while Thurmond will manage go-to-market functions including sales and marketing [2][4] - Under their interim leadership, Tenable expanded its customer base and adopted the Tenable One Exposure Management platform, along with the strategic acquisition of Vulcan Cyber to enhance its product offerings [3][5] Company Leadership - Steve Vintz has been the Chief Financial Officer since 2014, and Mark Thurmond has served as Chief Operating Officer since 2020, bringing extensive industry experience to their new roles [2][4] - The Board of Directors, led by Chairman Art Coviello, expressed confidence in Vintz and Thurmond's collaborative leadership style and customer-first approach [3] Strategic Developments - Tenable has seen strong adoption of its Tenable One Exposure Management platform and growing momentum in Tenable Cloud Security during the interim leadership [3] - The acquisition of Vulcan Cyber is expected to significantly enhance Tenable's product roadmap, leading to the launch of a more comprehensive exposure management platform [3]

Company Announcement - Tenable will release its financial results for the first quarter ended March 31, 2025, after the U.S. market close on April 29, 2025 [1] - A conference call will be held on the same day at 4:30 p.m. ET to discuss the results [1] Investor Relations - A live webcast of the conference call will be available on the Tenable Investor Relations website [2] - Domestic dial-in number for the call is 1-877-407-9716, and the international dial-in number is 1-201-493-6779 [2] - An archived replay of the call will be available following the event [2] Company Overview - Tenable is an exposure management company focused on closing cybersecurity gaps that affect business value, reputation, and trust [3] - The company offers an AI-powered exposure management platform that unifies security visibility, insight, and action across various attack surfaces [3] - Tenable serves approximately 44,000 customers globally, helping to reduce business risk associated with security exposure [3]