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)

Tenable Holdings, Inc. (NASDAQ:TENB) Q3 2023 Earnings Conference Call November 1, 2023 4:30 PM ET Company Participants Erin Karney - Vice President of Investor Relations Amit Yoran - Chairman and CEO Steve Vintz - CFO Conference Call Participants Brian Essex - JPMorgan Rob Owens - Piper Sandler Joel Fishbein - Truist Securities Hamza Fodderwala - Morgan Stanley Andrew Nowinski - Wells Fargo Brad Reback - Stifel Roger Boyd - UBS Gray Powell - BTIG Brian Colley - Stephens Inc. Garrett Burkam - William Blair M ...

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 ...

Tenable Holdings, Inc. (NASDAQ:TENB) Q2 2023 Earnings Conference Call July 25, 2023 4:30 PM ET Company Participants Erin Karney - VP, IR Amit Yoran - CEO Steve Vintz - CFO Conference Call Participants Brian Essex - JPMorgan Andrew Nowinski - Wells Fargo Rob Owens - Piper Sandler Saket Kalia - Barclays Jonathan Ho - William Blair Matthew Saltzman - Morgan Stanley Mike Cikos - Needham & Company Brad Reback - CECL Joshua Tilton - Wolfe Research Mike Walkley - Canaccord Genuity Rudy Kessinger - D.A. Davidson Ro ...

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 March 31, 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 ...

Tenable Holdings, Inc. (NASDAQ:TENB) Q1 2023 Earnings Conference Call April 24, 2023 4:30 PM ET Company Participants Erin Karney - Vice President, Investor Relations Amit Yoran - Chief Executive Officer Steve Vintz - Chief Financial Officer Conference Call Participants Rob Owens - Piper Sandler Joel Fishbein - Truist Securities Brian Essex - JPMorgan Hamza Fodderwala - Morgan Stanley Saket Kalia - Barclays Brad Reback - Stifel Mike Cikos - Needham & Company Andrew Nowinski - Wells Fargo Joshua Tilton - Wolf ...

Part I [Business](index=4&type=section&id=Item%201.%20Business) Tenable provides exposure management solutions, showing steady revenue growth to $683.2 million in 2022 despite net losses while serving 43,000 customers globally **Financial Performance (2020-2022)** | Metric | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Total Revenue** | $683.2 million | $541.1 million | $440.2 million | | **Revenue Growth (YoY)** | 26% | 23% | - | | **Net Loss** | ($92.2 million) | ($46.7 million) | ($42.7 million) | | **Cash Flow from Operations** | $131.2 million | $96.8 million | $64.2 million | - As of December 31, 2022, Tenable had approximately **43,000 customers** in over 170 countries, including about **60% of the Fortune 500** and **40% of the Global 2000**[27](index=27&type=chunk)[28](index=28&type=chunk) - The company's growth strategy focuses on acquiring new enterprise customers, expanding asset coverage within the existing customer base, investing in its technology platform, and exploring acquisition opportunities[26](index=26&type=chunk) - Tenable's primary competitors include vulnerability management vendors like **Qualys and Rapid7**, diversified security vendors, endpoint security vendors such as **CrowdStrike**, and cloud security providers like **Palo Alto Networks**[37](index=37&type=chunk) [Overview](index=4&type=section&id=Overview) Tenable provides exposure management solutions to address the expanding modern attack surface by unifying data sources for a comprehensive view of cyber risk - The modern attack surface includes identity and access management systems, operational technology (OT), personal devices (IoT, shadow IT), and tools used by DevOps teams (virtual machines, containers)[15](index=15&type=chunk)[18](index=18&type=chunk) - Tenable launched the **Tenable One Exposure Management Platform** in October 2022 to unify various data sources and provide a single exposure view[17](index=17&type=chunk) [Our Solutions](index=6&type=section&id=Our%20Solutions) The company's core offering is the Tenable One platform, which integrates key products for vulnerability management, cloud security, and Active Directory security - The Tenable One platform incorporates several key products: **Tenable.io** (SaaS Vulnerability Management), **Tenable.io Web Application Scanning**, **Tenable Lumin Exposure View**, **Tenable.cs** (Cloud Security), **Tenable.ad** (Active Directory Security), and **Tenable.asm** (External Attack Surface Management)[21](index=21&type=chunk) - Standalone solutions include **Tenable.sc** (on-premises Vulnerability Management) and **Tenable.ot** (Operational Technology Security)[21](index=21&type=chunk) - In July 2022, the company introduced **Nessus Expert**, which adds Infrastructure as Code (IaC) scanning and external attack surface discovery capabilities[23](index=23&type=chunk) [Sales and Marketing](index=8&type=section&id=Sales%20and%20Marketing) Tenable utilizes a dual sales strategy combining a direct-touch sales force with a two-tiered channel partner model to drive global market penetration - The company uses a **two-tiered channel model**, selling to distributors who sell to resellers, who then sell to end-user customers[26](index=26&type=chunk) - The sales team is geographically divided into the **Americas; Europe, the Middle East and Africa (EMEA); and Asia Pacific and Japan**[30](index=30&type=chunk) [Human Capital](index=11&type=section&id=Human%20Capital) The company's human capital strategy focuses on attracting and retaining talent in a diverse, hybrid workplace with robust compensation and development programs - At the end of 2022, the company had **1,900 employees**, with 796 (approximately 42%) located outside the U.S[47](index=47&type=chunk) - The company promotes a hybrid workplace strategy and offers compensation packages that include base salary, annual bonuses, **equity awards**, and an **Employee Stock Purchase Plan (ESPP)**[49](index=49&type=chunk) - Tenable outsources its data center needs to **Amazon Web Services (AWS)**, and its corporate headquarters is a **LEED Certified Gold** building[55](index=55&type=chunk) [Risk Factors](index=13&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including a history of net losses, intense competition, reliance on renewals, and challenges in data privacy and talent retention [Risks Related to Our Business and Industry](index=14&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) Operational risks include a history of net losses, intense competition from established and larger vendors, and high dependence on customer subscription renewals - The company has a history of net losses, reporting losses of **$92.2 million in 2022**, $46.7 million in 2021, and $42.7 million in 2020, with an accumulated deficit of **$746.8 million**[64](index=64&type=chunk) - The cybersecurity market is intensely competitive, with rivals including **Qualys, Rapid7, CrowdStrike, and Palo Alto Networks**, and pricing pressure from larger competitors like **Microsoft**[66](index=66&type=chunk)[67](index=67&type=chunk) - Business success depends heavily on **customer subscription renewals** and expansion, as a majority of contracts are for one year with no obligation to renew[98](index=98&type=chunk) - The company relies on third-party data centers, particularly **Amazon Web Services (AWS)**, for its network infrastructure[100](index=100&type=chunk) [Risks Related to Government Regulation, Data Collection and Intellectual Property](index=34&type=section&id=Risks%20Related%20to%20Government%20Regulation%2C%20Data%20Collection%20and%20Intellectual%20Property) The company is subject to complex data privacy laws like GDPR and CCPA, U.S. export controls, and challenges in protecting its intellectual property - The company is subject to numerous data privacy and security laws, including the **EU GDPR, UK GDPR, and CCPA**, which carry the risk of significant fines for non-compliance[105](index=105&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) - As of December 31, 2022, Tenable held **26 issued U.S. patents** and had 25 pending applications, relying on a mix of IP protections[165](index=165&type=chunk) - The use of **open-source software** in Tenable's solutions carries risks, as non-compliance could lead to litigation or require releasing proprietary source code[173](index=173&type=chunk)[174](index=174&type=chunk) [Risks Related to An Investment in Our Common Stock](index=38&type=section&id=Risks%20Related%20to%20An%20Investment%20in%20Our%20Common%20Stock) Investment risks include stock price volatility, a no-dividend policy, and anti-takeover provisions that may limit stockholder influence - The company has **never declared or paid cash dividends** and does not intend to in the foreseeable future, with its credit agreement also restricting payments[180](index=180&type=chunk) - **Anti-takeover provisions**, such as a classified Board of Directors, could delay or prevent a change in control[181](index=181&type=chunk)[182](index=182&type=chunk) - The certificate of incorporation establishes **exclusive forums** for most stockholder disputes, which could limit stockholders' ability to bring claims in other jurisdictions[184](index=184&type=chunk) [Unresolved Staff Comments](index=41&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the Securities and Exchange Commission - None[201](index=201&type=chunk) [Properties](index=41&type=section&id=Item%202.%20Properties) The company's corporate headquarters is a 160,000 square foot leased facility in Columbia, Maryland, supplemented by various international offices - The corporate headquarters in Columbia, Maryland, consists of approximately **160,000 square feet** with a lease expiring in February 2032[202](index=202&type=chunk) [Legal Proceedings](index=41&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently a party to 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 have a **material adverse effect** on the business[203](index=203&type=chunk) [Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[204](index=204&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=42&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Tenable's common stock trades on Nasdaq under "TENB," and the company has never paid dividends, retaining earnings for business expansion - Common stock trades on the **Nasdaq Global Select Market** under the ticker symbol **"TENB"**[207](index=207&type=chunk) - The company has **never paid dividends** and does not intend to in the foreseeable future, as it plans to retain earnings for business growth[208](index=208&type=chunk) [Selected Financial Data](index=43&type=section&id=Item%206.%20Selected%20Financial%20Data) This section presents key consolidated financial data from 2018 to 2022, including revenue, profit, loss, and balance sheet items **Selected Consolidated Statements of Operations Data (in thousands)** | | 2022 | 2021 | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $683,191 | $541,130 | $440,221 | $354,586 | $267,360 | | **Gross profit** | $528,402 | $434,734 | $362,667 | $293,768 | $224,193 | | **Loss from operations** | $(67,815) | $(41,768) | $(36,433) | $(90,799) | $(72,581) | | **Net loss** | $(92,222) | $(46,677) | $(42,731) | $(99,013) | $(73,521) | | **Net loss per share, basic and diluted** | $(0.83) | $(0.44) | $(0.42) | $(1.03) | $(1.38) | **Selected Consolidated Balance Sheet Data (in thousands)** | | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Cash and cash equivalents** | $300,866 | $278,000 | $178,223 | $74,363 | $165,116 | | **Total assets** | $1,439,530 | $1,248,819 | $690,589 | $558,612 | $460,612 | | **Deferred revenue, current and non-current** | $664,602 | $530,885 | $434,510 | $363,127 | $289,903 | | **Total stockholders' equity** | $270,866 | $215,313 | $150,665 | $98,905 | $121,763 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, highlighting 26% revenue growth in 2022, ongoing net losses due to investment, and key non-GAAP performance metrics [Key Operating and Financial Metrics](index=50&type=section&id=Key%20Operating%20and%20Financial%20Metrics) The company tracks key metrics like Calculated Current Billings and Free Cash Flow to evaluate performance, showing strong growth in customer acquisition and expansion **Key Metrics (2020-2022)** | Metric | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Calculated Current Billings** | $776.9M | $617.2M | $494.7M | | **Free Cash Flow** | $112.0M | $90.2M | $44.0M | | **New Enterprise Platform Customers** | 2,078 | 1,882 | 1,455 | | **Customers > $100k ACV** | 1,420 | 1,095 | 837 | | **Dollar-Based Net Expansion Rate** | 117% | 117% | 110% | **Reconciliation of GAAP Loss from Operations to Non-GAAP Income from Operations (in thousands)** | | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Loss from operations (GAAP)** | $(67,815) | $(41,768) | $(36,433) | | Stock-based compensation | 120,633 | 79,405 | 59,573 | | Acquisition-related expenses | 2,642 | 6,901 | 339 | | Costs related to intra-entity asset transfers | 838 | — | — | | Amortization of acquired intangible assets | 11,372 | 6,447 | 2,314 | | **Non-GAAP income from operations** | **$67,670** | **$50,985** | **$25,793** | [Results of Operations](index=58&type=section&id=Results%20of%20Operations) Revenue increased 26% in 2022 driven by subscription sales, while operating expenses grew 25%, widening the operating and net losses from the prior year **Revenue Comparison: 2022 vs 2021 (in thousands)** | Revenue Type | 2022 | 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Subscription | $612,510 | $476,023 | $136,487 | 29% | | Perpetual license and maintenance | $50,699 | $50,333 | $366 | 1% | | Professional services and other | $19,982 | $14,774 | $5,208 | 35% | | **Total Revenue** | **$683,191** | **$541,130** | **$142,061** | **26%** | - The **$79.3 million (29%) increase in sales and marketing expense** in 2022 was primarily due to a $52.5 million increase in personnel costs and a $14.2 million increase in sales commissions[276](index=276&type=chunk)[277](index=277&type=chunk) - The **$27.1 million (23%) increase in research and development expense** in 2022 was mainly driven by a $19.8 million increase in personnel costs[280](index=280&type=chunk)[282](index=282&type=chunk) [Liquidity and Capital Resources](index=64&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $300.9 million in cash, funded primarily by customer prepayments and a $375.0 million term loan **Cash Flow Summary (in thousands)** | Cash Flow Activity | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Net cash provided by operating activities** | $131,151 | $96,765 | $64,232 | | **Net cash (used in) provided by investing activities** | $(128,039) | $(391,590) | $4,079 | | **Net cash provided by financing activities** | $23,318 | $397,646 | $36,403 | - The company entered into a credit agreement in July 2021, which includes a **$375.0 million Term Loan** and a **$50.0 million Revolving Credit Facility**[300](index=300&type=chunk) - At December 31, 2022, the company had a **deferred revenue balance of $664.6 million**, a substantial source of cash from customer prepayments[297](index=297&type=chunk) [Critical Accounting Policies and Estimates](index=66&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Key accounting policies requiring significant management judgment include revenue recognition, deferred commissions, and the valuation of assets in business combinations - **Revenue Recognition:** For perpetual licenses, the company combines the license and maintenance into a single performance obligation and recognizes revenue over an estimated **five-year economic life**[315](index=315&type=chunk) - **Deferred Commissions:** Sales commissions are capitalized and amortized over an estimated period of benefit, ranging from **three to five years**[320](index=320&type=chunk) - **Business Combinations:** The company allocates the purchase price of acquisitions to tangible and intangible assets, with the excess recorded as goodwill, requiring significant valuation estimates[331](index=331&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=65&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks from variable interest rates on its debt, foreign currency fluctuations, and potential inflationary pressures - The company's **$375.0 million Term Loan** has a variable interest rate; a one percentage point increase would raise 2023 interest expense by an estimated **$2.5 million**[339](index=339&type=chunk) - **Foreign currency risk** is present due to operating expenses in currencies like the Euro, British Pound, and Israeli New Shekel[341](index=341&type=chunk) [Financial Statements and Supplementary Data](index=67&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's audited consolidated financial statements and the independent auditor's report for fiscal years 2020 through 2022 **Consolidated Balance Sheet (in thousands)** | | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $857,167 | $749,438 | | **Total Assets** | $1,439,530 | $1,248,819 | | **Total Current Liabilities** | $584,160 | $483,882 | | **Total Liabilities** | $1,168,664 | $1,033,506 | | **Total Stockholders' Equity** | $270,866 | $215,313 | **Consolidated Statement of Operations (in thousands)** | | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Revenue** | $683,191 | $541,130 | $440,221 | | **Gross Profit** | $528,402 | $434,734 | $362,667 | | **Loss from Operations** | $(67,815) | $(41,768) | $(36,433) | | **Net Loss** | $(92,222) | $(46,677) | $(42,731) | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=97&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[486](index=486&type=chunk) [Controls and Procedures](index=97&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2022 - Management concluded that as of December 31, 2022, the company's **disclosure controls and procedures were effective**[488](index=488&type=chunk) - Management concluded that the company's **internal control over financial reporting was effective** as of December 31, 2022[489](index=489&type=chunk) [Other Information](index=98&type=section&id=Item%209B.%20Other%20Information) In February 2023, the Board of Directors designated Chief Operating Officer Mark Thurmond as an "executive officer" of the company - On February 23, 2023, **Mark Thurmond, Chief Operating Officer**, was designated as an "executive officer" of the company[493](index=493&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=98&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - None[496](index=496&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=99&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the company's 2023 Proxy Statement - Required information is **incorporated by reference** from the company's 2023 Proxy Statement[499](index=499&type=chunk) [Executive Compensation](index=99&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive and director compensation is incorporated by reference from the company's 2023 Proxy Statement - Required information is **incorporated by reference** from the company's 2023 Proxy Statement[501](index=501&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=99&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the company's 2023 Proxy Statement - Required information is **incorporated by reference** from the company's 2023 Proxy Statement[502](index=502&type=chunk) [Certain Relationships and Related Transactions and Director Independence](index=99&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%20and%20Director%20Independence) Information regarding related transactions and director independence is incorporated by reference from the company's 2023 Proxy Statement - Required information is **incorporated by reference** from the company's 2023 Proxy Statement[503](index=503&type=chunk) [Principal Accountant Fees and Services](index=99&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's 2023 Proxy Statement - Required information is **incorporated by reference** from the company's 2023 Proxy Statement[504](index=504&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=100&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed with the Form 10-K, including a schedule for valuation and qualifying accounts **Valuation and Qualifying Accounts (Allowance for Doubtful Accounts, in thousands)** | Year Ended Dec 31 | Beginning Balance | Additions Charged to Costs | Deductions | Ending Balance | | :--- | :--- | :--- | :--- | :--- | | **2022** | $524 | $1,154 | $(278) | $1,400 | | **2021** | $261 | $349 | $(86) | $524 | | **2020** | $764 | $336 | $(839) | $261 | [Form 10-K Summary](index=102&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports that there is no Form 10-K summary - None[517](index=517&type=chunk)