Core Insights - Tenable has been ranked first in worldwide market share for exposure management in the IDC report for 2024, marking seven consecutive years of market share leadership [1][4][6] - The company attributes its success to early adoption of exposure management concepts, a strong partner ecosystem, and a channel-first strategy [2][4] - The Tenable One platform integrates data from over 300 security tools, providing a unified, AI-powered view of exposures across various attack surfaces [3][4] Company Developments - Tenable recently acquired Apex Security to enhance its AI capabilities, launching Tenable AI Exposure to improve visibility into AI usage and associated risks [5] - The IDC report emphasizes that exposure management offers a more comprehensive view than traditional vulnerability management, focusing on the fusion of multiple exposure sources [6] - Tenable was also recognized as a Leader in the IDC MarketScape: Worldwide Exposure Management 2025 Vendor Assessment [6]

Group 1 - Tenable Holdings, Inc. is recognized as a strong cybersecurity stock, with Stifel maintaining a 'Hold' rating and a price target of $35 following discussions with Co-CEO Steve Vintz [1][2] - The company has a gross profit margin of 78% and aims to increase this margin through its Tenable One and Cloud Security offerings, which are expected to enhance revenue growth currently at 11.4% over the last 12 months [2][4] - Stifel is focusing on developing a preemptive exposure management platform that integrates visibility, insight, and action, while also anticipating growth in operational technology and cybersecurity sectors [3][4] Group 2 - Tenable Holdings operates as an Exposure Management company, providing organizations with insights into their cyber risk by analyzing their attack surfaces, including IT infrastructure and cloud environments [4]

Core Insights - Rapid7, Inc. has been recognized as a Leader in the IDC MarketScape: Worldwide Exposure Management 2025 Vendor Assessment, highlighting its strong position in the threat detection and exposure management market [1][7] Company Overview - Rapid7 is focused on creating a safer digital world by simplifying cybersecurity and making it more accessible, serving over 11,000 global customers [6] - The company offers a comprehensive security solution that integrates cloud risk management with threat detection and response [6] Product Highlights - The Command Platform, an AI-powered security operations platform, is central to Rapid7's offerings, providing unified solutions for exposure management and threat detection [2][3] - Exposure Command enables organizations to detect and prioritize exposures across hybrid environments, offering full visibility into their attack surface and risk-based vulnerability prioritization [3][4] Market Positioning - The IDC MarketScape report emphasizes the importance of prioritization for security teams, noting that Rapid7 connects visibility, asset classification, and prioritization effectively [4][7] - Rapid7's capabilities include a normalized view of the attack surface, real-world risk prioritization, accelerated remediation, and scalability to complex environments [7]

Company Overview - Tenable has been recognized as a Leader in the IDC MarketScape: Worldwide Exposure Management 2025 Vendor Assessment, highlighting its strong position in the exposure management sector [1] - The company's flagship platform, Tenable One, is noted for its ability to unify visibility, insight, and action across various attack surfaces, including IT, cloud, AI, identity, and operational technology [2][3] Product Features - Tenable One offers over 300 integrations, making it the most interconnected exposure management platform available [2] - The platform provides a complete, contextualized view of risk and advanced prioritization, enabling organizations to focus on critical areas [2][3] - Tenable's AI-driven analytics enhance risk prioritization and accelerate response times, with features like generative AI for remediation guidance and attack path generation [3][6] Market Insights - The IDC MarketScape emphasizes the need for proactive cybersecurity solutions that offer comprehensive attack surface visibility and risk prioritization [3] - Organizations are encouraged to consider Tenable One for its ability to consolidate siloed risk data and integrate both Tenable-native and third-party data sources [3] - The report highlights the importance of addressing security silos as attack surfaces expand, particularly with the rise of AI [3] Recent Developments - Tenable has introduced Tenable AI Exposure, a solution designed to manage risks associated with generative AI, which is integrated into Tenable One [3] - The company has also enhanced its Vulnerability Priority Rating (VPR) using generative AI to improve precision in identifying significant risks [3]

Financial Data and Key Metrics Changes - In Q2 2025, the company achieved a revenue of $247.3 million, reflecting a 12% year-over-year growth and exceeding the midpoint of the guided range by $5.3 million [28][29] - The operating margin for the quarter was 19%, which is approximately 100 basis points better than the midpoint of the guided range [31] - The net dollar expansion rate was 107% for the quarter, indicating strong customer retention and upsell [27][66] Business Line Data and Key Metrics Changes - The exposure management platform, Tenable One, accounted for 40% of total new sales in the quarter, highlighting its growing adoption [7][27] - The company added 367 new enterprise platform customers and 76 net new six-figure customers during the quarter [27][66] - Current RPO (Remaining Performance Obligations) grew 12% year-over-year, reflecting increasing momentum with Tenable One [27] Market Data and Key Metrics Changes - The public sector showed better-than-expected performance, particularly in the SLED (State, Local, Education) business, driven by strong platform sales [9][10] - The company noted a positive outlook for the U.S. Federal market, with improved visibility into the renewal base despite a cautious spending environment [10][41] Company Strategy and Development Direction - The company is focusing on expanding its AI capabilities and integrating them into the Tenable One platform, particularly following the acquisition of Apex Security [26][75] - The strategic emphasis is on preemptive security, which involves reducing risk before breaches occur, rather than just responding after an attack [10][17] - The company aims to unify visibility, insights, and actions across various asset types, enhancing its competitive edge in the exposure management space [58][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive momentum and growth, particularly with the Tenable One platform [41][66] - The outlook for Q3 and the full year 2025 has been raised, reflecting improved visibility and performance in the federal market [34][35] - The company anticipates continued strong demand for its exposure management solutions as organizations modernize their security strategies [25][26] Other Important Information - The company reported a gross margin of 82% for the quarter, which is flat compared to the previous quarter [29] - The company has a strong cash position with $387 million in cash and short-term investments, providing flexibility for future investments and share repurchases [32][33] Q&A Session Summary Question: Comparison of current quarter with previous expectations - Management noted improved visibility in the federal business and a strong pipeline, leading to an upward revision of guidance [41][42] Question: Expectations for Tenable One penetration - The company highlighted that exposure solutions represent over 20% of total sales, with significant growth potential in the platform [45][46] Question: Competitive landscape in exposure management - Management emphasized Tenable One's hybrid capabilities and unified platform as key differentiators against traditional VM players [56][60] Question: Larger deal sizes and their sources - The company indicated that larger deals are coming from both new logos and existing customers, with a strong focus on the Tenable One platform [66][67] Question: Strategy for securing generative AI in enterprises - The acquisition of Apex is expected to enhance the company's AI capabilities, providing customers with better governance and security for AI resources [72][75] Question: Adoption metrics for AI solutions - Over 6,000 customers are using AI aware to detect shadow AI applications, with the capabilities from Apex being integrated into the Tenable One platform [83][84] Question: Performance of specific products and verticals - The company reported strong performance in exposure management and noted that the VM market met expectations without significant outperformance [88][91] Question: Opportunities in OT and hybrid environments - Management highlighted growth in sectors like data centers and manufacturing, where customers are seeking unified exposure management solutions [97][98]

Financial Data and Key Metrics Changes - In Q2 2025, the company achieved a revenue of $247.3 million, reflecting a 12% year-over-year growth and exceeding the midpoint of the guided range by $5.3 million [26][27] - The operating margin for the quarter was 19%, approximately 100 basis points better than the midpoint of the guided range [29] - Calculated current billings grew 8% year-over-year to $238.6 million, indicating strong momentum with the Tenable One platform [25] - The net dollar expansion rate was 107% for the quarter, demonstrating robust customer retention and upsell [25][70] Business Line Data and Key Metrics Changes - The exposure management platform, Tenable One, accounted for 40% of total new sales in the quarter, highlighting its growing adoption [5][25] - The company added 367 new enterprise platform customers and 76 net new six-figure customers during the quarter, indicating strong demand for its solutions [25][70] - The percentage of recurring revenue remained high at 96%, showcasing the stability of the revenue model [27] Market Data and Key Metrics Changes - The public sector showed better-than-expected performance, particularly in the SLED business, driven by strong platform sales [7][8] - The company noted an improvement in visibility within the U.S. Federal market, particularly regarding renewals, despite a cautious spending environment [8][42] Company Strategy and Development Direction - The company is focused on expanding its AI capabilities and integrating them into the Tenable One platform, particularly following the acquisition of Apex Security [6][24] - The strategic emphasis is on preemptive security, which involves reducing risk before breaches occur, rather than just responding to incidents [8][14] - The company aims to unify visibility, insights, and actions across hybrid environments, positioning itself as a leader in exposure management [16][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive momentum, particularly in the federal market, with a strong pipeline and opportunities for growth [42][44] - The outlook for Q3 and the full year 2025 has been raised, reflecting improved visibility and performance in the public sector [34] - The company anticipates continued growth in long-term RPO, with a 40% year-over-year increase, indicating strong customer commitment [25][70] Other Important Information - The company has a strong cash position with $387 million in cash and short-term investments, providing flexibility for future investments and share repurchases [30] - The company announced a $250 million increase to its share repurchase program, demonstrating a commitment to returning capital to shareholders [31] Q&A Session Summary Question: Comparison of current quarter performance with previous expectations - Management noted improved visibility in the federal business and a strong pipeline, leading to an upward revision of guidance [42][44] Question: Expectations for Tenable One penetration and growth - Management highlighted that Tenable One represents over 40% of new sales and is expected to drive further growth with modest movement in penetration [46][50] Question: Competitive landscape in exposure management - Management emphasized the differentiation of Tenable One through its hybrid capabilities and unified platform approach, leading to high win rates against competitors [58][60] Question: Impact of larger deal sizes on new logos versus renewals - Management indicated that while gross dollar renewal rates remain strong, new business from new logos is driving growth, particularly with the Tenable One platform [67][70] Question: Strategy for securing generative AI in enterprises - The company is leveraging AI to enhance customer security programs and has integrated Apex capabilities to address AI-related risks [76][78] Question: Performance trends in July - Management noted that July has been trending ahead of historical seasonality, indicating positive momentum as the third quarter progresses [115]

Financial Performance - Q2 2025 revenue reached $247.3 million[11], with a 12% revenue growth[11] - Q2 2025 unlevered free cash flow was $44.3 million[11] - Q2 2025 non-GAAP gross margin was 82%[11] - Q2 2025 recurring revenue was 96%[11] - The forecast for FY 2025 revenue is $981.0 million to $987.0 million[54] - The forecast for FY 2025 unlevered free cash flow is $265.0 million to $275.0 million[54] Market Position and Opportunity - The company has approximately 44,000 customers[11] - The company is the 1 market share leader in Vulnerability Management[11] - Exposure Management is estimated to be a $50 billion market opportunity[27] - The Exposure Management market is expected to have a 20% CAGR from 2025-2027[28] Product and Strategy - The company aggregates 1.5 billion assets[25], normalizes 100+ 3rd party integrations[25], and classifies 150 billion exposures[25]

Core Insights - Tenable One has achieved over 300 validated integrations, positioning it as the most interconnected exposure management platform in the market, enhancing visibility and risk reduction for security teams [1][2][3] Group 1: Platform Features and Benefits - The platform addresses the fragmentation in cybersecurity tools, which averages 83 per enterprise, by providing a unified view of the attack surface, thus reducing blind spots for security teams [2][3] - Tenable One integrates data from various security tools, including EDR, CNAPP, and PAM, to deliver a contextualized risk view, enabling teams to visualize attack paths and focus on critical exposures [3][4] - The platform automates remediation workflows and enhances collaboration across teams, significantly decreasing the time required to investigate and resolve security exposures [4] Group 2: Customer Impact and Ecosystem - Two-thirds of Tenable One customers utilize its integrations, with reported benefits including up to 10x greater visibility and a 75% reduction in time spent on data aggregation, allowing teams to concentrate on proactive risk management [5] - Tenable is launching a universal integrations connector to facilitate the development of custom integrations, reinforcing its commitment to an open ecosystem and enabling organizations to tailor the platform to their needs [6] Group 3: Partnerships and Industry Collaboration - Partnerships with companies like Splunk and ServiceNow enhance the platform's capabilities, allowing for faster threat detection and response through deep integration of exposure data [7][8] - The collaboration with CyberArk focuses on securing privileged access, combining vulnerability insights with intelligent controls to mitigate risks effectively [8]

Financial Performance - Q1 2025 revenue reached $239.1 million[12] - Q1 2025 unlevered free cash flow was $86.8 million[12] - Q1 2025 non-GAAP gross margin was 82%[12] - Q1 2025 recurring revenue was 96%[12] - The company forecasts revenue between $970 million and $980 million for the full year 2025[52] - The company forecasts unlevered free cash flow between $265 million and $275 million for the full year 2025[52] Market Position and Growth - The company is a category leader in Exposure Management[11] - The company has approximately 44,000 customers[12] - The company is ranked 1 in market share in Vulnerability Management[12, 23] - The total addressable market for cyber exposure is estimated at $33 billion with an 18% CAGR[29]

Core Insights - Tenable has been recognized as a Major Player in the inaugural IDC MarketScape: Worldwide Cloud-Native Application Protection Platform (CNAPP) 2025 Vendor Assessment, highlighting its strong position in the market [1][2]. Company Overview - Tenable is identified as an exposure management company that focuses on closing cybersecurity gaps that can undermine business value, reputation, and trust [7]. - The company serves approximately 44,000 customers globally, providing a unified security visibility and action platform that spans various environments, including IT infrastructure and cloud [7]. Product Capabilities - Tenable Cloud Security offers a comprehensive CNAPP solution that integrates seamlessly with Tenable One, enabling organizations to secure their entire cloud stack without needing additional tools [3]. - The platform provides tailored visibility for specific cloud providers such as AWS, GCP, Azure, and Oracle Cloud, simplifying the interpretation of security findings for personnel [4]. - It emphasizes context-rich prioritization and identity-intelligent risk analysis, allowing for the identification of critical vulnerabilities and toxic access combinations that may be overlooked by other solutions [4]. Market Recognition - The IDC MarketScape assessment involved structured discussions, interviews with market leaders, and end-user experiences, validating Tenable's strategies and capabilities in the CNAPP space [2]. - Eric Doerr, the chief product officer of Tenable, stated that this recognition underscores the company's commitment to helping customers manage risk across their cloud environments and overall attack surface [5].