Leveraging Tenable's exposure management capabilities, Deloitte and Tenable's shared customers can harness the power of proactive security and help remove noise by bringing their attack surfaces – on-premise and cloud- based – into a single view. Tenable One provides customers with the necessary comprehensive visibility, the breadth of vulnerability coverage, and depth of context-driven risk analytics to prioritize actions based on likelihood of attack to reduce cyber risk. COLUMBIA, Md., June 05, 2024 (GLO ...

Revenue Performance - Revenue for the three months ended March 31, 2024, was $216.0 million, representing a year-over-year growth of 14% compared to $188.8 million in the same period of 2023[80] - Revenue for the three months ended March 31, 2024, was $215.961 million, an increase of $27.122 million or 14% compared to $188.839 million in 2023[125] - Subscription revenue increased by $26.537 million or 16% to $197.635 million, while professional services and other revenue rose by $610,000 or 11% to $6.170 million[125] - U.S. revenue increased by $12.0 million or 11%, while international revenue rose by $15.1 million or 18%[125] Recurring Revenue - Recurring revenue accounted for 96% of total revenue in Q1 2024, up from 95% in Q1 2023[80] Profit and Loss - Net loss for the three months ended March 31, 2024, was $14.4 million, a decrease from a net loss of $25.1 million in Q1 2023[81] - The net loss for the three months ended March 31, 2024, was $14.386 million, a reduction from a net loss of $25.097 million in the same period of 2023[123] - Non-GAAP net income for the period was $30.440 million, compared to $13.063 million in the prior year, leading to non-GAAP earnings per share of $0.25, up from $0.11[123] Cash Flow - Cash flows from operating activities increased to $50.3 million in Q1 2024, compared to $38.7 million in Q1 2023[81] - Free cash flow for Q1 2024 was $47.1 million, compared to $37.3 million in Q1 2023[90] - Net cash provided by operating activities was $50.3 million, an increase from $38.7 million in the prior year[143] Customer Growth - The number of new enterprise platform customers added in Q1 2024 was 410, an increase of 8% from 379 in Q1 2023[91] - The number of customers with annual contract values of $100,000 or greater increased by 19%, reaching 1,717 in Q1 2024, up from 1,444 in Q1 2023[91] Operating Expenses - Operating expenses totaled $175.959 million, an increase of $13.470 million or 8% from $162.489 million in 2023, with sales and marketing expenses rising to $99.825 million[123] - Research and development expenses increased to $43.727 million, up from $38.183 million in the previous year, reflecting ongoing investment in product capabilities[123] - Research and development expenses increased by $5.5 million, or 15%, to $38.2 million for the three months ended March 31, 2024[129] - General and administrative expenses rose by $3.9 million, or 14%, to $31.0 million for the same period[129] - The company incurred $1.4 million in restructuring costs, representing a 100% increase compared to the previous year[130] Financial Metrics - Calculated current billings for Q1 2024 were $197.8 million, up from $176.8 million in Q1 2023, reflecting a growth of 12%[87] - The dollar-based net expansion rate for Q1 2024 was 109%, down from 113% in Q1 2023[94] - Non-GAAP income from operations for Q1 2024 was $37.0 million, compared to $18.1 million in Q1 2023, with a non-GAAP operating margin of 17%[98] Future Outlook - The company expects to continue investing in its cloud-based platform and customer support, which may affect future cost of revenue[108] - The company anticipates longer purchasing and approval phases in its sales cycle during 2024, despite improvements in sales cycles observed in the recent quarter[106] Deferred Revenue - Deferred revenue reached $722.7 million, with $562.6 million expected to be recognized as revenue in the next 12 months[136] Acquisitions and Stock Repurchase - The company acquired Ermetic for approximately $244 million in cash in October 2023[137] - A stock repurchase program authorized up to $100 million, with $25.0 million spent to repurchase 525,773 shares in the three months ended March 31, 2024[139] Interest and Taxes - Interest income increased by $0.5 million, or 10%, to $5.6 million, while interest expense rose by $0.8 million, or 11%, to $8.1 million[133] - The provision for income taxes decreased by $1.5 million, or 47%, to $1.7 million for the three months ended March 31, 2024[134] Cash and Investments - Cash and cash equivalents totaled $260.0 million, with short-term investments of $250.8 million as of March 31, 2024[134]

Financial Data and Key Metrics Changes - Revenue for the quarter was $216 million, representing a 14% year-over-year growth, exceeding the midpoint of the guided range by $3 million [167] - Calculated current billings grew 12% year-over-year to $197.8 million, with a strong performance in new logos resulting in nearly 30% year-over-year ACV growth from newly acquired customers [164][165] - The net dollar expansion rate decreased to 109% from 111% in the previous quarter, attributed to a higher-than-usual number of customers dropping below the $100,000 threshold [184] Business Line Data and Key Metrics Changes - Tenable One represented 26% of total new enterprise sales, up from 22% last quarter, indicating strong momentum in exposure management solutions [183] - Exposure management solutions, including Tenable One and stand-alone products, accounted for approximately 50% of total new enterprise sales in the quarter [183] - Sales and marketing expenses decreased to $84.5 million from $88.5 million last quarter, while R&D expenses increased to $32.6 million from $27.8 million [22][23] Market Data and Key Metrics Changes - The company added 410 new enterprise platform customers during the quarter, including a healthy number of six-figure lands, reflecting strength in new logo sales [19] - The spending environment is reported to be stronger than the previous year, with favorable deal sizes and strong pipeline generation [51][74] - The Federal sector showed significant traction, with strong demand in defense and critical infrastructure [50][76] Company Strategy and Development Direction - The company is focused on continuing to invest in the vulnerability management (VM) market, believing it translates to opportunities in other areas [4] - Tenable One is positioned as a unified platform to manage risks across various domains, including cloud, identities, and operational technology [160] - The company aims to leverage AI capabilities to enhance security insights and streamline workflows, positioning itself at the forefront of exposure management innovation [181][112] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the outlook for Q2 and the full year, citing a healthy pipeline and strong demand across various sectors [48][51] - The company anticipates greater contributions from cloud security in the second half of the year, particularly following the acquisition of Ermetic [11][134] - Management noted that the competitive dynamics in the VM market remain favorable, with high win rates and successful displacements of incumbent vendors [2][5] Other Important Information - The company finished the quarter with $510.8 million in cash and short-term investments, providing visibility into expected revenue over the next 12 months [25] - Moody's upgraded the company's issuer credit rating to Ba3, and S&P upgraded it to BB- [26] - The company incurred $1.4 million in restructuring costs in Q1, which was better than previously expected [31] Q&A Session Summary Question: What is the competitive environment in vulnerability management? - Management noted that the market dynamics are favorable, with high close rates and win rates, and emphasized their leadership position in the VM market [2][5] Question: Can you provide insights on the contributions from cloud security? - Management indicated that cloud security is expected to contribute more significantly in the second half of the year, particularly due to the integration of Ermetic [11][134] Question: How is the spending environment compared to last year? - The spending environment is reported to be stronger now than last year, with favorable deal sizes and strong activity in the Federal sector [51][74] Question: What is the outlook for the second half of the year? - Management expressed a bullish outlook for the second half, expecting higher growth driven by strong pipeline opportunities and engagement with customers [82][107]

Tenable Announces First Quarter 2024 Financial Results COLUMBIA, Maryland, May 1, 2024 — Tenable Holdings, Inc. ("Tenable") (Nasdaq: TENB), the Exposure Management company, today announced financial results for the quarter ended March 31, 2024. "We delivered strong results for the first quarter, highlighted by 14% revenue growth and 17% operating margin driven by traction in our unified platform," said Amit Yoran, Chairman and CEO of Tenable. "Our exposure management solutions, including Tenable One and Clo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ FORM 10-K ______________________________________ ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2023 or (Exact name of registrant as specified in its charter) ______________________________________ (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) Delaware 47-5580846 6 ...

Tenable Holdings (NASDAQ:TENB) Q4 2023 Results Earnings Conference Call February 7, 2024 4:30 PM ET Company Participants Erin Karney - Vice President of Investor Relations Amit Yoran - Chairman and Chief Executive Officer Steve Vintz - Chief Financial Officer Conference Call Participants Rob Owens - Piper Sandler & Co. Joel Fishbein - Truist Securities Mike Cikos - Needham & Company Jonathan Ho - William Blair Matthew Saltzman - Morgan Stanley Brian Essex - J.P. Morgan Dan Ives - Wedbush Securities Brad Reb ...

PART I [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the period ended September 30, 2023, detailing financial position, operational performance, cash flows, and key accounting notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet as of September 30, 2023, shows total assets increased to **$1.52 billion**, driven by higher cash, with equity rising to **$343.7 million** Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $445,316 | $300,866 | | Total current assets | $971,067 | $857,167 | | Total assets | $1,524,446 | $1,439,530 | | **Liabilities & Equity** | | | | Deferred revenue (current) | $518,372 | $502,115 | | Total liabilities | $1,180,773 | $1,168,664 | | Total stockholders' equity | $343,673 | $270,866 | | Total liabilities and stockholders' equity | $1,524,446 | $1,439,530 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Q3 2023 revenue increased **15%** to **$201.5 million**, with net loss narrowing to **$(15.6) million** from **$(18.7) million** year-over-year Statement of Operations Summary (in thousands, except per share data) | Metric | Q3 2023 | Q3 2022 | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $201,529 | $174,851 | $585,404 | $498,560 | | Gross Profit | $155,775 | $136,269 | $450,630 | $389,011 | | Loss from operations | $(7,913) | $(12,958) | $(37,814) | $(53,726) | | Net loss | $(15,565) | $(18,730) | $(56,636) | $(70,735) | | Net loss per share | $(0.13) | $(0.17) | $(0.49) | $(0.64) | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations for the nine months ended September 30, 2023, increased to **$111.4 million**, with a significant shift to positive investing cash flow Cash Flow Summary (Nine Months Ended Sep 30, in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $111,350 | $99,233 | | Net cash provided by (used in) investing activities | $19,619 | $(108,003) | | Net cash provided by financing activities | $16,043 | $23,195 | | Net increase in cash and cash equivalents | $144,450 | $10,149 | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail key accounting policies, significant revenue concentration, remaining performance obligations, and the **$244 million** acquisition of Ermetic Ltd - Subscription revenue is the primary revenue source, accounting for **$183.3 million (91%)** of the **$201.5 million** total revenue in Q3 2023[30](index=30&type=chunk) - The company has a significant concentration with one distributor, which accounted for **36%** of revenue in the first nine months of 2023 and **37%** of accounts receivable at September 30, 2023[31](index=31&type=chunk) - As of September 30, 2023, the company had **$697.2 million** in remaining performance obligations, with **$528.4 million** expected to be recognized as revenue over the next twelve months[33](index=33&type=chunk) - In October 2023, the company acquired Ermetic Ltd., a cloud infrastructure entitlement management provider, for a total purchase price of approximately **$244 million**[70](index=70&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2023 financial performance, highlighting **15% revenue growth**, strong liquidity, and the impact of the **$244 million** Ermetic acquisition - Revenue for Q3 2023 was **$201.5 million**, a **15%** year-over-year increase, with recurring revenue representing **95%** of total revenue for the quarter[79](index=79&type=chunk)[80](index=80&type=chunk) - The company experienced longer sales cycle times in the purchasing and approval phases starting in Q1 2023, a trend that has continued and may persist into 2024[110](index=110&type=chunk) - In October 2023, the company acquired Ermetic for approximately **$244 million** in cash to enhance its Tenable One Exposure Management Platform[148](index=148&type=chunk)[70](index=70&type=chunk) [Key Operating and Financial Metrics](index=21&type=section&id=Key%20Operating%20and%20Financial%20Metrics) Key metrics for Q3 2023 show **Calculated Current Billings** up **8%** to **$224.7 million** and **Free Cash Flow** increasing to **$40.3 million** Key Metrics Performance | Metric | Q3 2023 | Q3 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Calculated Current Billings (in millions) | $224.7 | $207.3 | 8% | | Free Cash Flow (in millions) | $40.3 | $31.5 | 28% | | Customers > $100k ACV | 1,565 | 1,280 | 22% | | Dollar-Based Net Expansion Rate | 111% | 118% | (7 p.p.) | Non-GAAP Income from Operations Reconciliation (in thousands) | Description | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | Loss from operations (GAAP) | $(7,913) | $(12,958) | | Stock-based compensation | $36,835 | $32,643 | | Acquisition-related expenses | $4,598 | $322 | | Amortization of acquired intangible assets | $3,055 | $3,080 | | **Non-GAAP income from operations** | **$36,575** | **$23,087** | [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q3 2023 revenue grew **15%** driven by existing customers, while cost of revenue and general and administrative expenses increased due to cloud infrastructure and acquisition-related costs - Q3 2023 revenue increased by **$26.7 million**, with **$30.6 million** from existing customers offsetting a **$3.9 million** decrease from new customers[127](index=127&type=chunk) - Cost of revenue increased by **19%** in Q3 2023, primarily due to a **$3.4 million** increase in third-party cloud infrastructure costs and a **$2.6 million** increase in personnel costs[128](index=128&type=chunk)[129](index=129&type=chunk) - General and administrative expenses increased by **28%** in Q3 2023, largely due to a **$4.3 million** increase in acquisition-related expenses[131](index=131&type=chunk)[134](index=134&type=chunk) - Other expense, net increased by **$4.4 million** in Q3 2023, primarily due to a **$5.0 million** impairment loss on a SAFE investment[132](index=132&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$445.3 million** in cash and **$247.7 million** in short-term investments, sufficient for future needs including the Ermetic acquisition - At September 30, 2023, the company had **$445.3 million** in cash and cash equivalents and **$247.7 million** in short-term investments[144](index=144&type=chunk) - A substantial source of cash is from customer prepayments, with a deferred revenue balance of **$681.5 million** as of September 30, 2023[146](index=146&type=chunk) - The company's Term Loan interest rates have been between **7.16%** and **8.20%** from January to September 2023, and the company was in compliance with all debt covenants[151](index=151&type=chunk)[152](index=152&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies interest rate, foreign currency, and inflation as primary market risks, with a **1%** interest rate increase potentially raising interest expense by **$0.3 million** - The company is exposed to interest rate risk on its **$375.0 million** variable-rate Term Loan, where a one percentage point increase would increase 2023 interest expense by **$0.3 million**[163](index=163&type=chunk) - Foreign currency exchange risk is limited as substantially all sales contracts are denominated in U.S. dollars, but a portion of operating expenses are incurred in foreign currencies like the Euro, British Pound, and Israeli New Shekel[164](index=164&type=chunk) - Inflation has not had a material effect but is a risk, particularly for employee-related and third-party cloud infrastructure costs[165](index=165&type=chunk) [Controls and Procedures](index=37&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, 2023, with no material changes to internal controls - Management, including the CEO and CFO, concluded that as of September 30, 2023, the company's disclosure controls and procedures were effective[167](index=167&type=chunk) - There were no material changes in the company's internal control over financial reporting during the quarter[169](index=169&type=chunk) PART II [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings that would have a material adverse effect on its business or financial condition - Tenable is not presently a party to any legal proceedings that would individually or collectively have a material adverse effect on the company[173](index=173&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) New risk factors include complex accounting rules, acquisition integration challenges, and geopolitical risks from the conflict in Israel impacting R&D operations - A new risk factor highlights that complex accounting rules and incorrect management estimates (e.g., for revenue recognition, deferred commissions) could adversely affect financial results[175](index=175&type=chunk)[177](index=177&type=chunk) - Acquisitions, such as the recent purchase of Ermetic, introduce risks including integration difficulties, unforeseen liabilities, and potential disruption to business operations[182](index=182&type=chunk) - The company identifies a new geopolitical risk due to the conflict in Israel, as its R&D teams for Tenable OT Security and the newly acquired Ermetic are located in Tel Aviv, which could materially impact product roadmaps[185](index=185&type=chunk)[186](index=186&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the reporting period - There were no unregistered sales of equity securities in the period[188](index=188&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report on Form 10-Q, including the Ermetic Share Purchase Agreement and officer certifications - The exhibits filed with the report include the Ermetic Share Purchase Agreement, officer certifications (302 and 906), and XBRL files[191](index=191&type=chunk)

Financial Data and Key Metrics Changes - Calculated current billings (CCB) grew 8% year-over-year to $224.7 million, while revenue was $201.5 million, representing 15% year-over-year growth [19][22] - The dollar-based net expansion rate was 111%, consistent with the previous quarter [22] - The company finished the quarter with $693 million in cash and short-term investments, and generated approximately $48 million of unlevered free cash flow during the quarter [23][24] Business Line Data and Key Metrics Changes - Tenable One represented 20% of new sales in the quarter and grew over 100% year-over-year [31] - The company added a record number of seven-figure customers, indicating strong performance in large enterprise and public sector [16][21] - There was softness in the mid-market, particularly with new logos, which is expected to persist into the next year [6][31] Market Data and Key Metrics Changes - Significant outperformance was noted in the public sector, especially in U.S. Federal, benefiting from a robust spending environment [29] - The mix of business shifted towards perpetual licenses and professional services, which minimally contributed to CCB [15][29] - The company is seeing increased emphasis on active directory security and cloud security within its specialty products [8] Company Strategy and Development Direction - The company continues to innovate within Tenable One, leveraging generative AI for faster insights and efficiency [7] - The integration of Ermetic is expected to enhance cloud security offerings and provide a competitive edge in the CNAPP market [27][40] - The company aims to balance growth with profitability, expecting unlevered free cash flow to grow approximately 25% next year [35] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious outlook from buyers in the market, impacting conversion rates [20] - The company anticipates mid-teen CCB growth for 2024, reflecting contributions from Ermetic and current selling conditions [34][78] - Management expressed confidence in the strength of their product offerings and the ability to capture market share despite macroeconomic challenges [70][93] Other Important Information - The company is raising its outlook for income from operations for the full year by $10 million, reflecting strong underlying performance [24] - The gross margin for the quarter was 80%, slightly down from 81% in the previous quarter [32] - The company expects to see a budget flush in Q4, which typically represents over 30% of total sales [105] Q&A Session Summary Question: What competitive dynamics does Tenable face in the cloud security market? - Management indicated that they are seeing competition from major CNAPP vendors but believe their integrated offerings provide a competitive advantage [40][49] Question: How is the integration of Ermetic progressing? - Management acknowledged some modest delays in integration activities but emphasized that strategic progress continues [52] Question: What is the outlook for the mid-market segment? - Management noted that the mid-market is experiencing softness, particularly in new logos, but remains optimistic about overall performance [71][81] Question: How does Tenable One's pricing compare to standalone VM? - Management stated that selling prices for Tenable One are approximately 70% higher than standalone VM due to its comprehensive asset coverage [120] Question: What is the company's approach to cash utilization? - Management highlighted the fragmented nature of the security market and indicated that cash is being used for strategic acquisitions and investments in cloud security [75]

Financial Performance & Growth - The company's Q3 2023 revenue reached $201.5 million, representing a 15% growth[9] - The company's Q3 2023 calculated current billings (CCB) was $224.7 million, an 8% increase[9] - The company forecasts revenue between $783 million and $791 million for the full year 2023[40] - The company anticipates calculated current billings between $879 million and $887 million for the full year[59] - The company's Q3 recurring revenue accounts for 95% of total revenue[9, 35] Market Position & Strategy - The company is a category leader in the Exposure Management market[24] - The company has approximately 43,000 customers, including ~60% of the Fortune 500 and ~40% of the Global 2000[24] - The company is ranked 1 by IDC in market share in the Worldwide Vulnerability Management market[30] Customer Acquisition & Value - The company is focused on landing higher value customers, with an increasing number of $100K+ ACV (Annual Contract Value) accounts[37] - The company is expanding its enterprise platform customer base[37] Profitability - The company achieved an 80% Non-GAAP Gross Margin in Q3 2023[24, 68] - The company's Q3 2023 Unlevered Free Cash Flow was $48.2 million[24] - The company's Q3 2023 Non-GAAP operating margin was 18%[58]

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, 2023 or ☐ 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 __________________ TENABLE HOLDINGS, INC. (Exact name of registrant as specified in ...