PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Tenable Holdings, Inc.'s unaudited consolidated financial statements for Q1 2022, detailing financial position, performance, cash flows, and accounting policies [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2022 | December 31, 2021 | | :-------------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $287,455 | $278,000 | | Short-term investments | $238,645 | $234,292 | | Accounts receivable, net | $96,381 | $136,601 | | Total current assets | $722,231 | $749,438 | | Goodwill | $280,574 | $261,614 | | Total assets | $1,237,875 | $1,248,819 | | Deferred revenue (current) | $404,786 | $407,498 | | Total current liabilities | $463,805 | $483,882 | | Term loan, net | $364,063 | $364,728 | | Total liabilities | $1,010,907 | $1,033,506 | | Total stockholders' equity | $226,968 | $215,313 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Revenue | $159,368 | $123,189 | | Cost of revenue | $34,930 | $22,073 | | Gross profit | $124,438 | $101,116 | | Sales and marketing | $81,570 | $58,635 | | Research and development | $34,290 | $26,838 | | General and administrative | $26,126 | $21,445 | | Total operating expenses | $141,986 | $106,918 | | Loss from operations | $(17,548) | $(5,802) | | Net loss | $(24,506) | $(7,748) | | Net loss per share, basic and diluted | $(0.22) | $(0.07) | [Consolidated Statements of Comprehensive Loss](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss) Consolidated Statements of Comprehensive Loss (in thousands) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net loss | $(24,506) | $(7,748) | | Unrealized losses on available-for-sale securities | $(1,057) | $(2) | | Other comprehensive loss | $(1,057) | $(2) | | Comprehensive loss | $(25,563) | $(7,750) | [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Consolidated Statements of Stockholders' Equity Highlights (in thousands) | Metric | Balance at December 31, 2021 | Balance at March 31, 2022 | | :-------------------------------- | :--------------------------- | :------------------------ | | Common Stock (Shares) | 108,929 | 110,287 | | Common Stock (Amount) | $1,089 | $1,103 | | Additional Paid-in Capital | $869,059 | $906,263 | | Accumulated Other Comprehensive Loss | $(306) | $(1,363) | | Accumulated Deficit | $(654,529) | $(679,035) | | Total Stockholders' Equity | $215,313 | $226,968 | - Stock-based compensation contributed **$25.7 million** to additional paid-in capital in Q1 2022, up from **$17.0 million** in Q1 2021[19](index=19&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $32,862 | $38,625 | | Net cash (used in) provided by investing activities | $(33,486) | $578 | | Net cash provided by financing activities | $10,528 | $12,058 | | Net increase in cash and cash equivalents and restricted cash | $9,455 | $50,193 | | Cash and cash equivalents and restricted cash at end of period | $287,726 | $228,656 | - Net cash used in investing activities significantly increased to **$(33.5) million** in Q1 2022, primarily due to the Cymptom acquisition and increased purchases of short-term investments and property and equipment[22](index=22&type=chunk)[160](index=160&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [1. Business and Summary of Significant Accounting Policies](index=8&type=section&id=1.%20Business%20and%20Summary%20of%20Significant%20Accounting%20Policies) - Tenable Holdings, Inc. provides Cyber Exposure solutions, offering broad visibility into security issues across IT infrastructure, cloud, Active Directory, and operational technology environments[24](index=24&type=chunk) - The consolidated financial statements are unaudited and prepared in conformity with GAAP, consistent with the 2021 Annual Report on Form 10-K, with no material changes to significant accounting policies during the three months ended March 31, 2022[25](index=25&type=chunk)[26](index=26&type=chunk)[29](index=29&type=chunk) [2. Revenue](index=9&type=section&id=2.%20Revenue) Revenue Disaggregation (in thousands) | Revenue Type | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Subscription revenue | $142,687 | $107,402 | | Perpetual license and maintenance revenue | $12,873 | $12,405 | | Professional services and other revenue | $3,808 | $3,382 | | Total Revenue | $159,368 | $123,189 | - Subscription revenue increased by **33%** year-over-year[143](index=143&type=chunk) - **92%** of revenue was derived through the channel network in both Q1 2022 and Q1 2021, with one distributor accounting for **37%** and **41%** of revenue, respectively[32](index=32&type=chunk) Deferred Commissions Activity (in thousands) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Beginning balance | $99,949 | $78,876 | | Capitalization of contract acquisition costs | $10,330 | $7,224 | | Amortization of deferred contract acquisition costs | $(11,016) | $(8,800) | | Ending balance | $99,263 | $77,300 | [3. Cash Equivalents and Short-Term Investments](index=10&type=section&id=3.%20Cash%20Equivalents%20and%20Short-Term%20Investments) Cash Equivalents and Short-Term Investments (in thousands) | Asset Type | Amortized Cost (Mar 31, 2022) | Estimated Fair Value (Mar 31, 2022) | Amortized Cost (Dec 31, 2021) | Estimated Fair Value (Dec 31, 2021) | | :-------------------------------- | :------------------------------ | :---------------------------------- | :------------------------------ | :---------------------------------- | | Money market funds | $156,230 | $156,230 | $178,518 | $178,518 | | Commercial paper | $111,521 | $111,224 | $134,165 | $134,118 | | Corporate bonds | $37,339 | $37,087 | $27,169 | $27,128 | | Asset backed securities | $26,358 | $26,168 | $27,464 | $27,411 | | Certificates of deposit | $20,000 | $19,963 | $10,000 | $9,992 | | Supranational bonds | $8,599 | $8,492 | $8,632 | $8,599 | | U.S. Treasury and agency obligations | $36,191 | $35,711 | $27,168 | $27,044 | | Total short-term investments | $240,008 | $238,645 | $234,598 | $234,292 | - Unrealized losses on short-term investments at March 31, 2022, totaling **$(1,363) thousand**, were primarily due to rising market interest rates and are not believed to represent credit losses[36](index=36&type=chunk) [4. Fair Value Measurements](index=11&type=section&id=4.%20Fair%20Value%20Measurements) - Fair value measurements classify assets into Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs)[39](index=39&type=chunk) Fair Value Measurement of Assets (in thousands) | Asset Type | Level 1 (Mar 31, 2022) | Level 2 (Mar 31, 2022) | Total (Mar 31, 2022) | | :-------------------------------- | :----------------------- | :----------------------- | :------------------- | | Money market funds | $156,230 | — | $156,230 | | Commercial paper | — | $111,224 | $111,224 | | Corporate bonds | — | $37,087 | $37,087 | | Asset backed securities | — | $26,168 | $26,168 | | Certificates of deposit | — | $19,963 | $19,963 | | Supranational bonds | — | $8,492 | $8,492 | | U.S. Treasury and agency obligations | — | $35,711 | $35,711 | | Total cash equivalents | $156,230 | — | $156,230 | | Total short-term investments | — | $238,645 | $238,645 | [5. Property and Equipment, Net](index=12&type=section&id=5.%20Property%20and%20Equipment%2C%20Net) Property and Equipment, Net (in thousands) | Asset Type | March 31, 2022 | December 31, 2021 | | :-------------------------------- | :------------- | :---------------- | | Computer software and equipment | $34,120 | $29,203 | | Furniture and fixtures | $5,851 | $5,944 | | Leasehold improvements | $26,926 | $26,713 | | Right-of-use assets under finance leases | $1,343 | $1,343 | | Total | $68,240 | $63,203 | | Less: accumulated depreciation and amortization | $(28,642) | $(26,370) | | Property and equipment, net | $39,598 | $36,833 | - Depreciation and amortization related to property and equipment increased to **$2.5 million** in Q1 2022 from **$2.2 million** in Q1 2021[41](index=41&type=chunk) [6. Acquisition, Goodwill and Intangible Assets](index=12&type=section&id=6.%20Acquisition%2C%20Goodwill%20and%20Intangible%20Assets) - In February 2022, Tenable acquired Cymptom for **$23.0 million** in cash, net of cash acquired, to enhance its platform with proactive attack path measurement and prioritization capabilities[42](index=42&type=chunk) Cymptom Acquisition Purchase Price Allocation (in thousands) | Allocation Item | Amount | | :-------------------------------- | :----- | | Intangible assets | $4,113 | | Goodwill | $18,960 | | Other liabilities, net | $(113) | | Total purchase price | $22,960 | - Goodwill increased to **$280.6 million** at March 31, 2022, from **$261.6 million** at December 31, 2021, primarily due to the Cymptom acquisition[46](index=46&type=chunk) - Amortization of acquired intangible assets increased significantly to **$2.4 million** in Q1 2022 from **$0.6 million** in Q1 2021[47](index=47&type=chunk) [7. Leases](index=14&type=section&id=7.%20Leases) Operating Lease Information | Metric | March 31, 2022 | December 31, 2021 | | :-------------------------------- | :------------- | :---------------- | | Weighted average remaining lease term | 9.1 years | 9.2 years | | Weighted average discount rate | 5.5% | 5.5% | Maturities of Operating Lease Liabilities at March 31, 2022 (in thousands) | Year Ending December 31, | Amount | | :-------------------------------- | :----- | | 2022 (nine months) | $4,655 | | 2023 | $8,214 | | 2024 | $8,349 | | 2025 | $8,189 | | 2026 | $7,410 | | Thereafter | $37,421 | | Total lease payments | $74,238 | | Less: Imputed interest | $(16,989) | | Total | $57,249 | [8. Debt](index=15&type=section&id=8.%20Debt) - In July 2021, Tenable entered into a Credit Agreement consisting of a **$375.0 million** senior secured term loan facility (Term Loan) and a **$50.0 million** senior secured revolving credit facility (Revolving Credit Facility)[51](index=51&type=chunk)[56](index=56&type=chunk) - The Term Loan bears interest at **2.75%** over LIBOR (subject to a **0.50%** floor) and is amortized at **1%** per annum, with a final payment of **$350.6 million** due July 7, 2028[52](index=52&type=chunk) - At March 31, 2022, Tenable was in compliance with all covenants under the Credit Agreement, with no amounts outstanding under the Revolving Credit Facility[55](index=55&type=chunk) [9. Commitments and Contingencies](index=16&type=section&id=9.%20Commitments%20and%20Contingencies) - Tenable has a **$140.6 million** commitment with Amazon Web Services, Inc. for cloud services from August 2021 through July 2024, having met its commitment for the first year as of March 31, 2022[57](index=57&type=chunk) - As of March 31, 2022, Tenable had **$5.7 million** in standby letters of credit, primarily related to grant agreements and operating leases, collateralized by restricted cash[58](index=58&type=chunk) [10. Stock-Based Compensation](index=16&type=section&id=10.%20Stock-Based%20Compensation) Stock-Based Compensation Expense (in thousands) | Category | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Cost of revenue | $1,513 | $937 | | Sales and marketing | $10,065 | $6,296 | | Research and development | $6,463 | $4,156 | | General and administrative | $7,357 | $5,563 | | Total stock-based compensation expense | $25,398 | $16,952 | - Unrecognized stock-based compensation expense at March 31, 2022, totaled **$311.1 million** for RSUs (**3.2 years** remaining), **$9.1 million** for PSUs (**3.9 years** remaining), **$1.0 million** for stock options (**0.2 years** remaining), and **$10.1 million** for the ESPP (**0.9 years** remaining)[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) [11. Income Taxes](index=18&type=section&id=11.%20Income%20Taxes) - The Q1 2022 income tax provision included **$1.7 million** in foreign income taxes, **$0.8 million** current expense from Israel R&D restructuring, and **$0.7 million** in discrete expense items, partially offset by **$0.4 million** deferred tax benefits from the Alsid acquisition[67](index=67&type=chunk) - The Q1 2021 income tax provision included **$1.1 million** in foreign income taxes and **$2.8 million** current expense from Israel R&D restructuring, partially offset by **$1.2 million** discrete benefits from an India Supreme Court decision and **$1.4 million** other discrete benefits[68](index=68&type=chunk) [12. Net Loss Per Share](index=18&type=section&id=12.%20Net%20Loss%20Per%20Share) Net Loss Per Share (in thousands, except per share data) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net loss | $(24,506) | $(7,748) | | Weighted-average shares used to compute net loss per share, basic and diluted | 109,524 | 104,531 | | Net loss per share, basic and diluted | $(0.22) | $(0.07) | - Potentially dilutive securities, including **8.1 million** RSUs and **6.4 million** stock options at March 31, 2022, were excluded from diluted EPS calculations as they were antidilutive[69](index=69&type=chunk) [13. Geographic Information](index=18&type=section&id=13.%20Geographic%20Information) Revenue by Region (in thousands) | Region | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | The Americas | $99,500 | $80,595 | | Europe, Middle East and Africa | $43,139 | $29,266 | | Asia Pacific | $16,729 | $13,328 | | Total Revenue | $159,368 | $123,189 | - Customers in the United States accounted for **56%** of revenue in Q1 2022 (down from **59%** in Q1 2021), with international revenue increasing by **40%** year-over-year[71](index=71&type=chunk)[143](index=143&type=chunk) [14. Subsequent Events](index=19&type=section&id=14.%20Subsequent%20Events) - In April 2022, Tenable agreed to acquire Bit Discovery, a leader in external attack surface management (EASM), for **$44.5 million** in cash, with the acquisition expected to close in Q2 2022[73](index=73&type=chunk) [Item 2. 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 Tenable's financial condition and results for Q1 2022, covering business developments, performance, influencing factors, and liquidity, emphasizing its Cyber Exposure solutions and growth strategies [Overview](index=20&type=section&id=Overview) - Tenable is a leading provider of Cyber Exposure solutions, offering broad visibility into security issues across IT, cloud, DevOps, Active Directory, and Industrial IoT/OT environments[76](index=76&type=chunk)[77](index=77&type=chunk) - Revenue for Q1 2022 was **$159.4 million**, a **29%** year-over-year increase, with recurring revenue representing **95%** of total revenue[81](index=81&type=chunk) - The company reported a net loss of **$24.5 million** in Q1 2022, compared to **$7.7 million** in Q1 2021[81](index=81&type=chunk) - No significant adverse impact from the COVID-19 pandemic was observed on the business as of March 31, 2022[82](index=82&type=chunk) [Factors Affecting Our Performance](index=21&type=section&id=Factors%20Affecting%20Our%20Performance) - Tenable focuses on product leadership through continuous innovation in its enterprise platform offerings and Nessus products to manage and reduce Cyber Exposure[84](index=84&type=chunk)[85](index=85&type=chunk) - Growth strategies include acquiring new enterprise platform customers by expanding the sales organization and leveraging channel partners, and expanding revenue from existing customers through broader coverage and upselling from Nessus Professional[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) - The dollar-based net expansion rate for the three months ended March 31, 2022, exceeded **110%** on a last twelve months (LTM) basis[92](index=92&type=chunk) - The company plans to continue significant investments in sales and marketing, research and development, and potential acquisitions to drive business growth, which may increase short-term net losses[94](index=94&type=chunk)[95](index=95&type=chunk) [Key Operating and Financial Metrics](index=23&type=section&id=Key%20Operating%20and%20Financial%20Metrics) Calculated Current Billings (in thousands) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Revenue | $159,368 | $123,189 | | Add: Deferred revenue (current), end of period | $404,786 | $325,113 | | Less: Deferred revenue (current), beginning of period | $(407,635) | $(328,819) | | Calculated current billings | $156,519 | $119,483 | Free Cash Flow and Unlevered Free Cash Flow (in thousands) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $32,862 | $38,625 | | Purchases of property and equipment | $(4,811) | $(1,061) | | Free cash flow | $28,051 | $37,564 | | Cash paid for interest and other financing costs | $4,051 | $71 | | Unlevered free cash flow | $32,102 | $37,635 | Enterprise Platform Customer Growth | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | Change (%) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :--------- | | New enterprise platform customers added | 459 | 331 | 39% | Customers with $100,000+ Annual Contract Value | Metric | At March 31, 2022 | At March 31, 2021 | Change (%) | | :-------------------------------- | :---------------- | :---------------- | :--------- | | Number of customers | 1,112 | 866 | 28% | Non-GAAP Income from Operations and Operating Margin (in thousands) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Loss from operations (GAAP) | $(17,548) | $(5,802) | | Stock-based compensation | $25,398 | $16,952 | | Acquisition-related expenses | $1,341 | $2,158 | | Costs related to intra-entity asset transfers | $838 | — | | Amortization of acquired intangible assets | $2,427 | $579 | | Non-GAAP income from operations | $12,456 | $13,887 | | Operating margin (GAAP) | (11)% | (5)% | | Non-GAAP operating margin | 8% | 11% | Non-GAAP Net Income and Earnings Per Share (in thousands, except per share amounts) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net loss (GAAP) | $(24,506) | $(7,748) | | Stock-based compensation | $25,398 | $16,952 | | Tax impact of stock-based compensation | $1,066 | $(4) | | Acquisition-related expenses | $1,341 | $2,158 | | Costs related to intra-entity asset transfers | $838 | — | | Amortization of acquired intangible assets | $2,427 | $579 | | Tax impact of acquisitions | $(442) | — | | Tax impact of intra-entity asset transfers | $843 | $2,808 | | Non-GAAP net income | $6,965 | $14,745 | | Net loss per share, diluted (GAAP) | $(0.22) | $(0.07) | | Non-GAAP earnings per share, diluted | $0.06 | $0.13 | [Components of Our Results of Operations](index=27&type=section&id=Components%20of%20Our%20Results%20of%20Operations) - Revenue is primarily generated from subscription arrangements (recognized ratably), perpetual licenses with maintenance (combined performance obligation, recognized over initial term and expected renewal period), and professional services (recognized as performed)[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk) - Cost of revenue includes personnel costs for technical support, cloud infrastructure costs, professional services, depreciation, and amortization of acquired technology[124](index=124&type=chunk) - Operating expenses consist of sales and marketing (largest category, expected to increase in absolute dollars), research and development (expected to increase annually), and general and administrative expenses (expected to increase annually due to public company costs)[128](index=128&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) - Interest expense, net, primarily relates to the senior secured term loan facility, while other expense, net, mainly consists of foreign currency remeasurement and transaction gains/losses[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) - Provision for income taxes includes foreign jurisdiction taxes, R&D restructuring expenses, and discrete expense items, with a full valuation allowance maintained for deferred tax assets[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) This section compares Tenable's financial results for Q1 2022 and Q1 2021, detailing revenue, cost of revenue, operating expenses, and other financial items Revenue Growth (in thousands) | Revenue Type | Q1 2022 | Q1 2021 | Change ($) | Change (%) | | :-------------------------------- | :------ | :------ | :--------- | :--------- | | Subscription revenue | $142,687 | $107,402 | $35,285 | 33% | | Perpetual license and maintenance revenue | $12,873 | $12,405 | $468 | 4% | | Professional services and other revenue | $3,808 | $3,382 | $426 | 13% | | Total Revenue | $159,368 | $123,189 | $36,179 | 29% | - U.S. revenue increased by **22%**, while international revenue increased by **40%** year-over-year. Approximately **$1.4 million** of Q1 2022 revenue was due to early termination of contracts in Russia and Belarus[143](index=143&type=chunk) - Cost of revenue increased by **$12.9 million** (**58%**), primarily due to a **$7.9 million** increase in third-party cloud infrastructure costs and a **$1.8 million** increase in amortization of intangible assets[144](index=144&type=chunk)[146](index=146&type=chunk) - Gross margin decreased from **82%** in Q1 2021 to **78%** in Q1 2022[144](index=144&type=chunk) - Sales and marketing expense increased by **$22.9 million** (**39%**), driven by a **$13.6 million** increase in personnel costs (including **$3.8 million** stock-based compensation) and a **$4.5 million** increase in sales commissions[145](index=145&type=chunk)[147](index=147&type=chunk) - Research and development expense increased by **$7.5 million** (**28%**), mainly due to a **$5.6 million** increase in personnel costs (including **$2.3 million** stock-based compensation)[145](index=145&type=chunk)[148](index=148&type=chunk) - General and administrative expense increased by **$4.7 million** (**22%**), primarily from a **$3.3 million** increase in personnel costs (including **$1.8 million** stock-based compensation) and a **$0.8 million** increase in intra-entity asset transfer costs[149](index=149&type=chunk)[154](index=154&type=chunk) - Interest expense, net, increased by **$3.3 million**, primarily due to the Term Loan entered into in July 2021[149](index=149&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) This section analyzes Tenable's liquidity position, capital resources, and cash flow management, including funding sources, principal uses of cash, and future capital requirements - At March 31, 2022, Tenable had **$287.5 million** in cash and cash equivalents and **$238.6 million** in short-term investments[150](index=150&type=chunk) - Operations are primarily financed through cash provided by operations and customer prepayments (deferred revenue), which totaled **$527.5 million** at March 31, 2022[151](index=151&type=chunk)[152](index=152&type=chunk) - Principal uses of cash include funding operations, expanding sales/marketing and R&D, infrastructure investments, and acquiring complementary businesses (e.g., Cymptom for **$23.0 million** in Q1 2022, Bit Discovery for **$44.5 million** in Q2 2022)[153](index=153&type=chunk) - The company expects existing cash and investments to be sufficient for at least the next 12 months but may require additional equity or debt financing for future growth and acquisitions[154](index=154&type=chunk)[155](index=155&type=chunk) - The **$375.0 million** Term Loan and **$50.0 million** Revolving Credit Facility (from July 2021) are key components of the capital structure, with the company in compliance with covenants as of March 31, 2022[156](index=156&type=chunk)[157](index=157&type=chunk) [Cash Flows](index=34&type=section&id=Cash%20Flows) This section summarizes Tenable's cash flow activities from operations, investing, and financing for the three months ended March 31, 2022 Summary of Cash Flows (in thousands) | Activity | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $32,862 | $38,625 | | Net cash (used in) provided by investing activities | $(33,486) | $578 | | Net cash provided by financing activities | $10,528 | $12,058 | | Net increase in cash and cash equivalents and restricted cash | $9,455 | $50,193 | - Net cash from investing activities decreased by **$34.1 million**, primarily due to the **$23.0 million** Cymptom acquisition, a **$7.4 million** increase in net purchases of short-term investments, and a **$3.8 million** increase in property and equipment purchases[160](index=160&type=chunk) - Net cash from financing activities decreased by **$1.5 million**, mainly due to a **$1.4 million** decrease in stock option exercise proceeds and a **$0.9 million** term loan principal payment, partially offset by an **$0.8 million** increase from the employee stock purchase plan[161](index=161&type=chunk) [Contractual Obligations](index=35&type=section&id=Contractual%20Obligations) This section addresses Tenable's contractual obligations and commitments, referencing details provided in the notes to the consolidated financial statements - No material changes to contractual obligations and commitments were reported from those disclosed in the 10-K, with details on operating lease payments and AWS cloud service commitments referenced in Notes 7 and 9[162](index=162&type=chunk) [Critical Accounting Policies and Estimates](index=35&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section confirms that Tenable's financial statements adhere to U.S. GAAP, with no material changes to critical accounting policies or estimates from the 10-K - Financial statements are prepared in accordance with U.S. GAAP, requiring management estimates and assumptions, with no material changes to critical accounting policies and estimates from the 10-K[163](index=163&type=chunk)[164](index=164&type=chunk) [Recently Issued Accounting Pronouncements](index=35&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) This section refers to Note 1 of the consolidated financial statements for information on recently issued accounting pronouncements, including ASU No. 2020-04 - Information regarding recently issued accounting pronouncements is provided in Note 1 to the consolidated financial statements, specifically mentioning ASU No. 2020-04 - Reference Rate Reform[30](index=30&type=chunk)[165](index=165&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines Tenable's exposure to market risks, including interest rate, foreign currency exchange, and inflation risks, and assesses their potential impact on the company's financial position and results of operations - Tenable is exposed to interest rate risk from its cash, cash equivalents, short-term investments, and the variable-rate Term Loan. A one percentage point increase in the Term Loan rate would increase 2022 interest expense by **$1.6 million**[167](index=167&type=chunk)[168](index=168&type=chunk) - Foreign currency exchange risk primarily affects operating expenses incurred outside the U.S., but its impact has not been material historically, and the company has not engaged in hedging transactions[170](index=170&type=chunk) - Inflation has not had a material effect on the business, but significant inflationary pressures on costs could adversely affect financial condition[171](index=171&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of Tenable's disclosure controls and procedures as of March 31, 2022, and reports no material changes in internal control over financial reporting. It also acknowledges the inherent limitations of internal control systems - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2022, providing reasonable assurance that required information is recorded, processed, summarized, and reported timely[172](index=172&type=chunk)[173](index=173&type=chunk) - No changes in internal control over financial reporting were identified during the period that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[174](index=174&type=chunk) - Management acknowledges that internal controls, no matter how well designed, can only provide reasonable, not absolute, assurance of achieving control objectives due to inherent limitations and resource constraints[175](index=175&type=chunk)[176](index=176&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) This section states that Tenable is not currently involved in any legal proceedings that would materially adversely affect its business. However, it acknowledges the potential for future litigation, particularly concerning intellectual property, and the associated costs and management distractions - Tenable is not currently a party to any legal proceedings that would have a material adverse effect on its business, results of operations, financial condition, or cash flows[178](index=178&type=chunk) - The company may face future claims, including intellectual property infringement, and litigation can have an adverse impact due to defense and settlement costs and diversion of management resources[178](index=178&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) This section details significant risks and uncertainties that could materially and adversely affect Tenable's business, financial condition, and results of operations. These risks span operational, competitive, regulatory, and financial aspects, including market dynamics, technological challenges, legal compliance, and investment-related considerations [Selected Risks Affecting Our Business](index=38&type=section&id=Selected%20Risks%20Affecting%20Our%20Business) This section highlights key operational and financial risks that could impact Tenable's business performance and financial stability - Key risks include a history of losses, intense competition, inability to sustain revenue growth, challenges in scaling the business, dependence on reliability and accuracy of data/solutions, fluctuating quarterly results, reliance on customer renewals and expansion, dependence on third-party network infrastructure, stringent data privacy obligations, and reliance on channel partners[180](index=180&type=chunk) [Risks Related to Our Business and Industry](index=39&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) This section details specific risks inherent to Tenable's business model and the cybersecurity industry, encompassing competitive pressures, growth sustainability, and operational dependencies - Tenable has a history of net losses (**$24.5 million** in Q1 2022) and may not achieve or maintain profitability due to a highly competitive and evolving market, and increased costs from investments in growth[182](index=182&type=chunk)[183](index=183&type=chunk) - The cybersecurity market is intensely competitive, requiring continuous innovation to address dynamic threats and compete with larger, more established vendors and new market entrants[184](index=184&type=chunk)[189](index=189&type=chunk) - Sustaining revenue growth (**29%** YoY in Q1 2022) is uncertain and depends on customer acquisition, expansion, product enhancements, and effective competition[191](index=191&type=chunk) - The business relies heavily on customer renewals and expansion of IT assets/IP addresses under subscriptions; any decline would harm results[211](index=211&type=chunk)[212](index=212&type=chunk) - Reliance on third-party network infrastructure (e.g., AWS) poses risks of service interruptions, security breaches, and potential liability[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk) - Compliance with stringent and changing data privacy and security obligations (e.g., CCPA, GDPR) is critical; non-compliance could lead to regulatory actions, fines, and reputational harm[220](index=220&type=chunk)[221](index=221&type=chunk)[222](index=222&type=chunk)[225](index=225&type=chunk) - The company relies on a two-tiered channel partner network (distributors and resellers) for a substantial amount of revenue (**92%** in Q1 2022), with Ingram Micro, Inc. accounting for **37%** of revenue[226](index=226&type=chunk) - Recent and future acquisitions (e.g., Cymptom, Bit Discovery) involve risks such as integration difficulties, unforeseen liabilities, and diversion of resources[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk) - The company may require additional capital for growth and acquisitions, which might not be available on acceptable terms, and its existing debt (Term Loan) imposes restrictive covenants[262](index=262&type=chunk)[265](index=265&type=chunk) [Risks Related to Government Regulation, Data Collection and Intellectual Property](index=57&type=section&id=Risks%20Related%20to%20Government%20Regulation%2C%20Data%20Collection%20and%20Intellectual%20Property) This section addresses risks associated with government regulations, data handling, and intellectual property protection, including compliance, potential infringement claims, and open-source software use - Failure to obtain and maintain required security clearances for employees or facility security clearances could adversely affect the ability to secure and perform U.S. government contracts[276](index=276&type=chunk) - Protecting proprietary technology and intellectual property (**24 issued patents**, **17 pending applications**, trademarks, trade secrets) is crucial; failure to do so could harm the business and operating results[277](index=277&type=chunk)[278](index=278&type=chunk)[279](index=279&type=chunk)[282](index=282&type=chunk) - The company may be subject to costly intellectual property rights claims by third parties, potentially requiring significant damages or limiting the use of certain technologies[283](index=283&type=chunk)[284](index=284&type=chunk)[285](index=285&type=chunk) - Use of open source software in solutions carries risks, including potential infringement claims or requirements to publicly release proprietary source code if license terms are not complied with[286](index=286&type=chunk)[287](index=287&type=chunk) [Risks Related to An Investment in Our Common Stock](index=59&type=section&id=Risks%20Related%20to%20An%20Investment%20in%20Our%20Common%20Stock) This section outlines risks specific to investing in Tenable's common stock, including price volatility, potential dilution from future sales, dividend policy, and anti-takeover provisions - The company's stock price may be volatile due to various factors, including operating results, competitor actions, market speculation, and general economic conditions[288](index=288&type=chunk)[289](index=289&type=chunk)[291](index=291&type=chunk) - Future sales of substantial amounts of common stock by the company or its stockholders could depress the market price and impair the ability to raise capital[293](index=293&type=chunk)[294](index=294&type=chunk) - Tenable does not intend to pay dividends for the foreseeable future, meaning investment returns depend solely on stock price appreciation[295](index=295&type=chunk) - Anti-takeover provisions in charter documents and Delaware law could make an acquisition more difficult and limit stockholders' ability to influence management or the Board of Directors[296](index=296&type=chunk)[297](index=297&type=chunk) [General Risks](index=61&type=section&id=General%20Risks) This section covers broad risks such as compliance with anti-corruption laws, export controls, tax law uncertainties, limitations on NOLs, internal control effectiveness, and geopolitical tensions - Non-compliance with anti-corruption laws (e.g., FCPA, U.K. Bribery Act) in domestic and international operations can lead to criminal/civil liability and harm business/reputation[301](index=301&type=chunk)[302](index=302&type=chunk) - Governmental export/import controls and economic sanctions could impair the ability to conduct international business and result in liability for non-compliance[303](index=303&type=chunk)[304](index=304&type=chunk)[305](index=305&type=chunk) - Uncertainties in tax laws and regulations, including potential changes to income and non-income taxes, could materially affect tax obligations and effective tax rate[306](index=306&type=chunk)[307](index=307&type=chunk) - The ability to use net operating losses (NOLs) to offset future taxable income may be limited by Internal Revenue Code provisions (Section 382) or lack of future taxable income[309](index=309&type=chunk)[310](index=310&type=chunk) - Failure to maintain proper and effective internal controls over financial reporting could adversely affect investor confidence and the common stock value[311](index=311&type=chunk)[313](index=313&type=chunk) - The conflict in Ukraine and other geopolitical tensions could negatively impact the global economy and capital markets, potentially affecting customer budgets and purchasing decisions[272](index=272&type=chunk)[273](index=273&type=chunk)[275](index=275&type=chunk) [Item 2. 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) This section confirms that there were no unregistered sales of equity securities or any use of proceeds to report during the period - No unregistered sales of equity securities occurred during the period[314](index=314&type=chunk) - No proceeds from unregistered sales of equity securities were used during the period[315](index=315&type=chunk) [Item 6. Exhibits](index=66&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Quarterly Report on Form 10-Q, including corporate governance documents, certifications, and XBRL data files - Exhibits include the Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws, Common Stock Certificate, Certifications of Principal Executive and Financial Officers (pursuant to Sections 302 and 906 of Sarbanes-Oxley Act), and Inline XBRL Taxonomy Extension Documents[317](index=317&type=chunk) [Signatures](index=67&type=section&id=Signatures) This section contains the official signatures of the registrant's authorized officers, specifically the Chairman and Chief Executive Officer and the Chief Financial Officer, certifying the accuracy and completeness of the Quarterly Report on Form 10-Q - The report is signed by Amit Yoran, Chairman and Chief Executive Officer, and Stephen A. Vintz, Chief Financial Officer, on May 5, 2022, certifying compliance with Securities Exchange Act requirements[322](index=322&type=chunk)

Financial Data and Key Metrics Changes - Revenue for Q1 2022 was $159.4 million, representing a 29% year-over-year growth, up from 20% growth in Q1 2021 and 26% growth in the previous quarter [32][33] - Calculated current billings (CCB) grew 31% year-over-year to $156.5 million, marking the fourth consecutive quarter of accelerating CCB growth [31][34] - The percentage of recurring revenue was 95%, primarily due to the annual prepaid subscription model [33] Business Line Data and Key Metrics Changes - The exposure platform, Tenable.ep, which now includes cloud and identity security, saw significant traction and is becoming a rapidly growing portion of new sales [22][20] - New enterprise platform customers grew 39% year-over-year, with strong demand in North America and internationally [36] - Upsell from existing customers was substantial, contributing to a net dollar expansion rate notably above historical rates [37] Market Data and Key Metrics Changes - The cybersecurity market is experiencing increased threats, driving a healthy spending environment and a high demand for understanding cyber exposure and risk [12][11] - The company is seeing strong demand in the public sector, which accounts for approximately 15% of revenue, with a healthy spending environment [102] Company Strategy and Development Direction - The company announced an agreement to acquire Bit Discovery, enhancing its capabilities in external attack surface management [16][51] - The strategy focuses on integrating new capabilities into a unified cyber exposure management platform, which includes advanced analytics and attack path analysis [91][108] - The company aims to continue investing in product development and innovation to maintain its market leadership in vulnerability management [15][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth trajectory, citing strong demand and a favorable market environment for cybersecurity solutions [78][96] - The company anticipates a more normalized spending environment for the remainder of the year, reflecting reduced impacts from previous tailwinds [50][115] - Management highlighted the importance of hiring and retaining talent to support growth and innovation [28][26] Other Important Information - The company reported a gross margin of 81% for the quarter, slightly down from 82% in the previous quarter, attributed to increased public cloud costs [38] - The company generated $32.1 million of unlevered free cash flow in Q1, maintaining confidence in its ability to generate attractive cash flow while investing in the business [47] Q&A Session Summary Question: Clarification on Bit Discovery's Contribution - The contribution from Bit Discovery is not included in the CCB guidance [59][60] Question: Update on OT Security Sales Cycles - There has been increased adoption of the OT platform, and sales cycles are starting to shorten [61][62] Question: Sales and Marketing Spending Expectations - Investments in sales and marketing are expected to be weighted towards the first half of the year, with higher operating margins anticipated in the second half [66][68] Question: Composition of the Quarter's Performance - The company added over 400 new enterprise platform customers and saw strong performance across various segments [70][71] Question: Macro Environment Impact on Europe - The company is confident in its performance despite macroeconomic challenges, with strong demand observed [76][78] Question: Hiring Progress for Sales Reps - The hiring rate for quota-carrying sales reps is notably faster than the previous year, contributing to growth [80][81] Question: Demand for Tenable.ep - Tenable.ep is being well received by customers, with strong adoption across various product lines [84][88] Question: Analytics Investment Monetization - The company plans to include analytic capabilities in the platform while also offering some as separate add-ons [91][92] Question: Seasonal Patterns for CCB Guidance - The company expects to follow typical seasonal patterns, with Q4 being the strongest quarter [114][115] Question: Competitive Advantages and Win Rates - The company has seen improvements in win rates, particularly when first in on opportunities [96][97] Question: Developer Security Demand - The company is early in the market for developer security but sees strong momentum in pipeline growth [100][101] Question: Public Sector Opportunities - The public sector remains a healthy spending environment, with many opportunities in the pipeline [102][103] Question: Differentiation in ASM Market - The company believes it is well positioned to disrupt the ASM space with its acquisition of Bit Discovery [108][109]

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, 2021 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Title of each class Trading symbol(s) Name of exchange on which registered Common stock, par value $0.01 per share TENB Nasdaq ...

| --- | --- | |-----------------------------------------------------------------------------------------------|-------| | | | | | | | REFINITIV STREETEVENTS EDITED TRANSCRIPT TENB.OQ - Q4 2021 Tenable Holdings Inc Earnings Call | | | EVENT DATE/TIME: FEBRUARY 01, 2022 / 9:30PM GMT | | | REFINITIV STREETEVENTS \| www.refinitiv.com \| Contact Us | | | | | ©2022 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the ...

Financial Data and Key Metrics Changes - Revenue for Q4 was $149 million, representing a 26% year-over-year growth, exceeding the midpoint of guidance by $5 million [28] - Calculated current billings (CCB) grew 29% year-over-year to $194 million, with a notable acceleration from 20% in Q1 to 29% in Q4 [29][30] - The company finished the year with $541.1 million in revenue, a 23% growth year-over-year [28] Business Line Data and Key Metrics Changes - The company added 562 new enterprise platform customers in Q4, a record for a single quarter, and 100 net new six-figure customers, also a record [11][32] - Exposure solutions, including Tenable.io and Tenable.ep, continued to gain traction, driven by customer needs to assess risk across various assets [33] - Accurics' contribution to CCB in Q4 was nominal as the acquisition closed in the same quarter, but it is expected to enhance cloud capabilities moving forward [33][34] Market Data and Key Metrics Changes - The company experienced strong performance across all geographies and both new and renewal business [30] - 86% of enterprises are expected to increase spending on active directory security in 2022, indicating a growing market opportunity [15] - The company noted a significant uptick in expansion rates following the discovery of Log4j, highlighting increased customer demand for coverage [30] Company Strategy and Development Direction - The company aims to integrate new capabilities into its unified exposure platform (EP), enhancing analytics and providing a holistic risk assessment [78] - Recent acquisitions, including Accurics and Cymptom, are expected to strengthen the product suite and expand into strategic markets [21][52] - The focus remains on balancing growth with profitability, with a long-term goal of becoming a rule of 50 company [53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business outlook for 2022, citing strong performance in Q4 and the full year [50] - The guidance for CCB growth in 2022 is set at 22% to 23%, with some continued tailwinds from Log4j expected in Q1 [51] - Management emphasized the importance of understanding cyber risk in a holistic manner, integrating various exposure solutions [24] Other Important Information - The company achieved a gross margin of 82% for Q4, with expectations for modest impacts on margins due to ongoing investments [35][36] - The company finished the quarter with $512 million in cash and short-term investments, providing strong visibility for 2022 [45] - The company generated $22.4 million of unlevered free cash flow in Q4, totaling $95.2 million for the year, a significant increase over 2020 [46] Q&A Session Summary Question: What was the impact of Log4j in Q4 and expectations for 2022? - Management noted that Log4j surfaced in December, contributing to strong renewal and expansion sales, particularly in the mid-market [58][60] - For 2022, the guidance reflects continued tailwinds from Log4j in Q1, with more modest contributions expected throughout the year [61] Question: Can you provide insight on the impact of Accurics and Cymptom on revenue guidance for 2022? - Management indicated that Accurics will contribute more significantly in the second half of the year, while Cymptom will be integrated into existing products [66][67] Question: What are the expectations for gross margins moving forward? - Management expects gross margins to track modestly lower from Q4 levels due to continued investments, but potential improvements could arise from better-than-expected top-line performance [68][69] Question: How is the bundling strategy for EP performing? - Management reported rapid adoption of EP, with a natural progression to include active directory and cloud capabilities, enhancing the overall value proposition [72][74] Question: What is the current competitive landscape for Tenable? - Management highlighted strong differentiation in the market, particularly in response to high-profile vulnerabilities like Log4j, which has increased visibility and demand for their solutions [102][104]

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 September 30, 2021 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 specifie ...

| --- | --- | --- | --- | |--------------|------------------------------------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | CYBER EXPOSURE | | | | | | | | | ࠀࠁ߿ࠁ October | MANAGING AND MEASURING CYBER RISK IN THE DIGITAL ERA | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Forward-Looking Statements This presentation includes forward-looking statements. All statements contained in this pr ...

Financial Data and Key Metrics Changes - Revenue for Q3 2021 was $138.7 million, representing a 23% year-over-year growth, exceeding the midpoint of the guided range by $4.7 million [24] - Calculated current billings (CCB) grew 25% year-over-year to $166.9 million, up from 23% growth reported last quarter [24][25] - Gross margin was 83%, up one point from the previous quarter, with expectations to remain at current levels in Q4 [33][34] - EPS in Q3 was $0.07, which was $0.05 better than the midpoint of the guided range [39] Business Line Data and Key Metrics Changes - Tenable AD and OT products showed notable traction, contributing several points of growth in Q3 [28][29] - Cloud products, including Tenable.io and Tenable.ep, represented over 50% of total new sales, with growth rates for these products exceeding the overall company growth rate [26][27] - The public sector business accounted for 17% of total company sales, benefiting from a favorable spending environment [30] Market Data and Key Metrics Changes - The company added 499 new enterprise platform customers in Q3, a record for any single quarter, and 62 net new six-figure customers [25] - The demand environment in the public sector has been strong, driven by executive orders and legislative proposals [66] Company Strategy and Development Direction - The company is focused on integrating new products into a unified platform to enhance capabilities and customer value [19][18] - A global strategic partnership with Splunk was announced to secure Active Directory and converged OT environments [13] - The acquisition of Accurics is expected to significantly enhance cloud capabilities and support a shift-left approach in security [14][105] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business environment, expecting Q4 revenue to be in the range of $143 million to $145 million [42] - The company anticipates continued strong demand for its products, particularly in the context of heightened cybersecurity threats [72] - Management highlighted the importance of securing Active Directory as a critical area of focus, especially in light of recent high-profile attacks [71] Other Important Information - The company plans to hold a virtual Investor Day on December 15, providing further insights into product momentum [21] - The company has a strong cash position with $652 million in cash and short-term investments, including $336 million from a recent credit facility [40] Q&A Session Summary Question: Regarding the seven-figure win with the OT product - The win was with an existing VM customer who expanded their purchase to include AD and OT components, resulting in a several hundred thousand dollars ACV increase [52] Question: Contribution of cloud sales to overall revenue - Cloud products accounted for over 50% of new sales, with strong demand driven by digital transformation initiatives [54] Question: Organic vs. inorganic growth in revenue - Revenue growth was a combination of both organic strength and contributions from newly acquired products, particularly AD and OT [58] Question: Future of federal spending and its impact - The company expects continued strong performance in the federal market, supported by a heightened awareness of cybersecurity [66] Question: Adoption rates of new products within the installed base - The company is seeing positive trends in net dollar expansion rates, indicating strong adoption of new products among existing customers [81] Question: Bundling strategy for products like EP - The company has seen strong traction with EP, which integrates various products to create unique value propositions for customers [88] Question: MSSP channel investments and their impact - The MSSP channel is viewed as a long-term growth opportunity, with new partnerships contributing positively to sales [99]

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, 2021 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 ...

Tenable Holdings, Inc. (NASDAQ:TENB) Q2 2021 Earnings Conference Call July 27, 2021 4:30 PM ET Company Participants Erin Karney - Senior Director of Investor Relations Amit Yoran - President, Chief Executive Officer & Chairman Stephen Vintz - Chief Financial Officer Conference Call Participants Brian Essex - Goldman Sachs Hamza Fodderwala - Morgan Stanley Rob Owens - Piper Sandler Sterling Auty - JPMorgan Saket Kalia - Barclays Mike Cikos - Needham & Company Jonathan Ho - William Blair Joelle Fishbein - Tru ...