Tenable Holdings, Inc. (NASDAQ:TENB) Q4 2019 Earnings Conference Call February 4, 2020 4:30 PM ET Company Participants Andrea DiMarco - Head, IR Amit Yoran - Chairman and CEO Stephen Vintz - Chief Financial Officer Conference Call Participants Sterling Auty - JPMorgan Chase & Co. Melissa Franchi - Morgan Stanley Gur Talpaz - Stifel, Nicolaus & Company Jonathan Ho - William Blair & Company Daniel Ives - Wedbush Securities Nicholas Yako - Cowen and Company Joshua Tilton - Berenberg Operator Greetings and welc ...

PART I – FINANCIAL INFORMATION This section provides the company's unaudited consolidated financial statements, management's discussion and analysis, market risk disclosures, and controls [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Tenable Holdings, Inc.'s unaudited consolidated financial statements, including balance sheets, statements of operations, cash flows, and detailed notes - The financial statements are unaudited and prepared in conformity with **U.S. Generally Accepted Accounting Principles (GAAP)** for interim financial information[24](index=24&type=chunk) - The company completed its **Initial Public Offering (IPO)** on July 30, 2018, receiving net proceeds of **$264.6 million** after deducting underwriting discounts, commissions, and other offering expenses[26](index=26&type=chunk) [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$532.2 million** from **$460.6 million**, while total liabilities grew to **$409.0 million** from **$338.8 million** Consolidated Balance Sheet Highlights (in thousands) | Metric | Sep 30, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | **Total Assets** | **$532,212** | **$460,612** | | Cash and cash equivalents | $171,303 | $165,116 | | Deferred revenue (Total) | $329,375 | $289,903 | | **Total Liabilities** | **$409,024** | **$338,849** | | **Total Stockholders' Equity** | **$123,188** | **$121,763** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Q3 2019 revenue grew **32%** to **$91.9 million**, with net loss narrowing, while nine-month revenue grew **34%** to **$257.5 million**, with net loss widening Statement of Operations Summary (in thousands, except per share data) | Metric | Q3 2019 | Q3 2018 | Nine Months 2019 | Nine Months 2018 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $91,852 | $69,440 | $257,537 | $192,139 | | Gross Profit | $76,607 | $57,279 | $215,148 | $161,371 | | Loss from Operations | $(18,327) | $(21,096) | $(63,246) | $(52,990) | | Net Loss | $(17,640) | $(20,869) | $(60,708) | $(53,907) | | Net Loss Per Share | $(0.18) | $(0.28) | $(0.64) | $(1.34) | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$7.7 million**, investing activities used **$15.5 million**, and financing activities provided **$30.6 million**, significantly lower due to prior year's IPO Cash Flow Summary (Nine Months Ended Sep 30, in thousands) | Metric | 2019 | 2018 | | :--- | :--- | :--- | | Net cash used in operating activities | $(7,672) | $(1,005) | | Net cash used in investing activities | $(15,480) | $(38,254) | | Net cash provided by financing activities | $30,565 | $265,750 | - The significant decrease in financing cash flow year-over-year is due to the **$268.5 million** in net **IPO** proceeds received in 2018, which was a one-time event[19](index=19&type=chunk)[170](index=170&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section details significant accounting policies, including revenue recognition, concentrations (one distributor **43%** of revenue), deferred commissions, lease accounting, and geographic revenue Revenue Breakdown (in thousands) | Revenue Type | Q3 2019 | Q3 2018 | YTD 2019 | YTD 2018 | | :--- | :--- | :--- | :--- | :--- | | Subscription revenue | $75,503 | $53,511 | $209,610 | $146,568 | | Perpetual license and maintenance | $13,797 | $13,864 | $40,877 | $40,753 | | Professional services and other | $2,552 | $2,065 | $7,050 | $4,818 | - A single distributor accounted for **43%** of revenue in both the three and nine months ended September 30, 2019, and represented **40%** of accounts receivable at the end of the period[37](index=37&type=chunk) - At September 30, 2019, remaining performance obligations were **$333.4 million**, with **74%** expected to be recognized as revenue in the next twelve months[39](index=39&type=chunk) Revenue by Geography (Nine Months Ended Sep 30, in thousands) | Region | 2019 | 2018 | | :--- | :--- | :--- | | Americas | $177,392 | $137,868 | | Europe, Middle East and Africa | $56,123 | $38,218 | | Asia Pacific | $24,022 | $16,053 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, highlighting **32%** Q3 2019 revenue growth, continued investment in growth leading to net loss, and key metrics like **28%** calculated current billings growth and strong customer acquisition - The company identifies itself as the first and only provider of solutions for **Cyber Exposure**, a new category of cybersecurity[83](index=83&type=chunk) - Key factors affecting performance include product leadership, new enterprise customer acquisition, and retaining/expanding revenue from existing customers. The company expects its dollar-based net expansion rate to continue to exceed **110%**[91](index=91&type=chunk)[93](index=93&type=chunk)[100](index=100&type=chunk) Calculated Current Billings (Non-GAAP, in thousands) | Period | 2019 | 2018 | Growth | | :--- | :--- | :--- | :--- | | Three Months Ended Sep 30 | $110,610 | $86,741 | 28% | | Nine Months Ended Sep 30 | $289,878 | $228,819 | 27% | Enterprise Customer Growth | Metric | Q3 2019 vs Q3 2018 | As of Sep 30, 2019 vs 2018 | | :--- | :--- | :--- | | New enterprise platform customers added | 387 vs 258 (50% increase) | N/A | | Customers with >$100k ACV | N/A | 589 vs 387 (52% increase) | [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Detailed operating results show Q3 2019 revenue up **32%** to **$22.4 million**, driven by subscription revenue, with gross margin at **83%** and increased operating expenses - Q3 2019 revenue increased **$22.4 million** (**32%**) year-over-year, primarily from a **$22.0 million** increase in subscription revenue. Revenue from existing customers comprised **49%** of the increase[144](index=144&type=chunk)[145](index=145&type=chunk) - Q3 2019 sales and marketing expense increased by **$12.1 million** (**27%**) year-over-year, mainly due to a **$5.6 million** increase in personnel costs and a **$3.5 million** increase in sales commissions[146](index=146&type=chunk)[148](index=148&type=chunk) - For the nine months ended Sep 30, 2019, revenue increased **$65.4 million** (**34%**) year-over-year. Revenue from existing customers comprised **62%** of this increase[150](index=150&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2019, the company held **$171.3 million** in cash and **$125.3 million** in short-term investments, with **$329.4 million** in deferred revenue, sufficient for the next 12 months Key Liquidity Figures (as of Sep 30, 2019, in millions) | Metric | Amount | | :--- | :--- | | Cash and cash equivalents | $171.3 | | Short-term investments | $125.3 | | Deferred revenue | $329.4 | - The company has a **$25.0 million** revolving credit facility which was undrawn as of September 30, 2019[163](index=163&type=chunk) - Management believes existing cash will be sufficient for at least the next **12 months**. Capital expenditures for the new corporate headquarters are expected to be **$5 million to $7 million** in Q4 2019[161](index=161&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rates, foreign currency, and inflation, with interest rate risk on its cash and investments deemed immaterial, and foreign currency risk limited as most sales are in USD - The primary market risks are **interest rate**, **foreign currency exchange**, and **inflation**[178](index=178&type=chunk) - Interest rate risk on the **$171.3M** cash and **$125.3M** investment portfolio is not considered material[179](index=179&type=chunk) - Foreign currency risk is limited as substantially all sales contracts are denominated in **U.S. dollars**, though some operating expenses are incurred in foreign currencies. The company does not currently hedge this exposure[181](index=181&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of September 30, 2019, with no material changes in internal control over financial reporting - Management, including the CEO and CFO, concluded that as of September 30, 2019, the company's disclosure controls and procedures were **effective**[184](index=184&type=chunk) - **No material changes** were identified in the company's internal control over financial reporting during the quarter ended September 30, 2019[186](index=186&type=chunk) PART II – OTHER INFORMATION This section covers legal proceedings, key risk factors, equity securities sales and use of proceeds, and a list of exhibits and signatures [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any legal proceedings that would have a material adverse effect on its business, though it may face ordinary claims - The company is **not presently a party** to any legal proceedings that, if determined adversely, would individually or in aggregate have a **material adverse effect** on its business, financial condition, or cash flows[190](index=190&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) Key risks include a history of losses, intense competition, reliance on revenue growth and customer renewals, channel partner dependency (one distributor **43%** of revenue), and evolving data privacy regulations - The company has a history of **net losses**, including a **$60.7 million** loss for the nine months ended September 30, 2019, and an accumulated deficit of **$526.8 million**[192](index=192&type=chunk) - The market for cybersecurity solutions is **intensely competitive**, with competitors including vulnerability management vendors like Qualys and Rapid7, and diversified security vendors like IBM[207](index=207&type=chunk) - The company relies **heavily on its channel partner network**, which generated **90% of revenue** in the first nine months of 2019. One distributor, **Ingram Micro**, accounted for **43% of revenue** during this period[233](index=233&type=chunk)[234](index=234&type=chunk) - The business is subject to **complex and evolving data privacy regulations** like **GDPR** and the **California Consumer Privacy Act (CCPA)**, which could increase costs and create liability[228](index=228&type=chunk)[230](index=230&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=65&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities and confirmed its July 2018 IPO raised **$264.6 million** in net proceeds, with no material change in use - There were **no unregistered sales** of equity securities during the reporting period[313](index=313&type=chunk) - The company confirms it received net proceeds of **$264.6 million** from its July 2018 **IPO** and that there has been **no material change** in the planned use of these proceeds[316](index=316&type=chunk)[317](index=317&type=chunk) [Exhibits](index=66&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Quarterly Report on Form 10-Q, including corporate documents and certifications from executive officers [Signatures](index=67&type=section&id=Signatures) The report is duly signed and authorized by Amit Yoran, Chairman and CEO, and Stephen A. Vintz, CFO, on November 13, 2019

CYBER EXPOSURE MANAGING AND MEASURING CYBER RISK IN THE DIGITAL ERA October 2019 Forward-Looking Statements This presentation includes forward-looking statements. All statements contained in this presentation other than statements of historical facts, including statements regarding our future results of operations and financial position, our business strategy and plans and our objectives for future operations, are forward-looking statements. The words "anticipate," believe," "continue," "estimate," "expect, ...

Tenable Holdings, Inc. (NASDAQ:TENB) Q3 2019 Earnings Conference Call October 29, 2019 4:30 PM ET Company Participants Andrea DiMarco - Head, IR Amit Yoran - President, CEO & Chairman Stephen Vintz - CFO Conference Call Participants Sterling Auty - JPMorgan Chase & Co. Melissa Franchi - Morgan Stanley Gur Talpaz - Stifel, Nicolaus & Company Jonathan Ho - William Blair & Company Daniel Ives - Wedbush Securities Gray Powell - Deutsche Bank Nicholas Yako - Cowen and Company Joshua Tilton - Berenberg Operator G ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________ FORM 10-Q __________________ ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended June 30, 2019 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (410) 872-0555 (Registrant's telephone number, including area code) __________________ For the transition period from _____ to _____ Commission f ...

Tenable Holdings, Inc. (NASDAQ:TENB) Q2 2019 Results Earnings Conference Call July 30, 2019 4:30 PM ET Company Participants Andrea DiMarco - VP, IR and Strategy Amit Yoran - CEO Steve Vintz - CFO Conference Call Participants Gur Talpaz - Stifel Jonathan Ho - William Blair Dan Ives - Wedbush Securities Gray Powell - Deutsche Bank Joshua Tilton - Berenberg Nick Yako - Cowen & Company Operator Greetings and welcome to the Tenable Second Quarter Earnings Call. [Operator Instructions] As a reminder, this confere ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________ FORM 10-Q __________________ ý Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended March 31, 2019 or o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _____ to _____ (Registrant's telephone number, including area code) __________________ Indicate by check mark whe ...

Financial Data and Key Metrics Changes - Revenue for Q1 2019 was $80.3 million, representing a 36% year-over-year growth [6][24] - Calculated current billings grew 25% year-over-year to $81.2 million [6][24] - Approximately 90% of revenue recognized in the quarter was recurring, benefiting from the subscription model [24] - Gross margin was 85% in Q1, slightly down from 86% in Q1 last year [27] - Non-GAAP loss from operations was $13.2 million, compared to a loss of $12.9 million in Q1 last year [32][33] Business Line Data and Key Metrics Changes - The company added 311 new enterprise platform customers in Q1, with 40% of new logo adds coming from greenfield opportunities [25] - The number of customers spending over $100,000 annually increased by 41, bringing the total to 494 [25] Market Data and Key Metrics Changes - The total addressable market for Cyber Exposure is estimated to reach $16 billion in 2019 [16] - The operational technology security market is expected to grow at a 46% CAGR through 2022 [15] Company Strategy and Development Direction - The company is focused on Cyber Exposure as a strategic priority, integrating vulnerability management with broader risk management [6][12] - Investments in product and distribution are expected to yield positive results, with an optimistic outlook for the remainder of 2019 [23] - The company aims to leverage partnerships with major players like ServiceNow, Splunk, and AWS to enhance its offerings [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the vulnerability management market is heating up, with increased engagement from corporate executives regarding security programs [40] - The company expects continued momentum in the second half of 2019, driven by product improvements and sales capacity [42] - Management expressed confidence in the company's competitive positioning and win rates, indicating strong customer demand for its solutions [46] Other Important Information - The company anticipates a non-GAAP net loss per share in the range of $0.56 to $0.52 for the full year 2019 [36] - Free cash flow burn was $3.2 million for the quarter, impacted by employee stock purchase plan activity [34] Q&A Session Summary Question: Health of the vulnerability management market - Management indicated that the market continues to heat up, with increased recognition of the importance of vulnerability management [40] Question: Guidance for current billings growth - Management expressed confidence in accelerating growth due to improved product positioning and sales capacity [42] Question: Federal business impact from the government shutdown - Management noted that the federal business performed better than expected, with no significant impact on the overall outlook for the year [44] Question: Competitive landscape and win rates - Management reported strong competitive win rates, with superior functionality and capability compared to competitors [46] Question: Update on Lumin product timing - Management confirmed that Lumin is on track for a 2019 GA release, building on the recently released Predictive Prioritization [48] Question: Interest in consolidating infrastructure management - Management noted growing interest in a unified view of IT and OT environments, driven by increased awareness and funding in the market [52] Question: Customer response to Predictive Prioritization - Management reported extremely positive feedback from customers regarding the new capabilities introduced [54] Question: Evolution of enterprise sales motion - Management highlighted ongoing investments in sales capacity and the addition of named account reps to capture larger deals [56]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ FORM 10-K ______________________________________ ý Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2018 or o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _____ to _____ Commission file number 001-38600 ______________________________ ...