Cyber Warfare & Geopolitical Risks - Cyber has become integral to modern military operations and an important domain of conflict alongside air, land, and sea [2] - Military forces launch major cyber offensives to weaken communications and attack critical infrastructure to gain military advantage [3] - The Israel-Iran conflict is likely to see more cyber attacks, some reported, others not, potentially extending beyond the Middle East [3][4] - Iran is proactively imposing a nationwide blackout on internet and telecommunication systems [4] - Cyber attacks are no longer just about stealing credit card data; they can be a very disruptive force [5] - Attacks could cripple communication systems, cause denial of service, infiltrate systems, and exfiltrate data [12] - The goal of attacks is to create upheaval, uncertainty, and disruptions, targeting both military and civilian levels, including municipal water supplies and manufacturing facilities [13] Threat Exposure & Security Measures - Companies need to be extra vigilant during times of military conflict and economic uncertainty, as higher incidents of cyber threats are observed [8] - Tenable focuses on exposure management, a pre-breach preventive security approach, different from detect and respond technologies [10] - Enterprises are modernizing and deploying technology rapidly, expanding the attack surface and creating challenges in holistically understanding risk [10] - Tenable's exposure management platform pieces together data from various sources to help customers understand risk holistically [10]

Summary of Tenable Conference Call Company Overview - **Company**: Tenable - **Core Business**: Transitioned from vulnerability management (VM) to a broader exposure management platform, Tenable One, integrating various asset types and focusing on risk-based security [2][5][6] Key Points Industry Dynamics - **Market Position**: Tenable has expanded its total addressable market (TAM) significantly, now assessing assets in operational technology (OT), identity, cloud security, attack surface management, and web application security [5][6] - **Acquisitions**: Recent acquisitions include Vulcan and Apex, enhancing capabilities in integrating third-party assets and AI security [5][7][68] Financial Performance - **Q1 Performance**: Strong start to the year with all metrics beating guidance, but 2025 outlook lowered from 7%-9% to 6%-8% due to federal sector uncertainties and global trade scrutiny [8][9][10] - **Federal Sector Impact**: Approximately 15% of business tied to the federal sector, with reduced visibility affecting growth expectations [10][11][12] Growth Strategy - **Focus on Exposure Management**: Transitioning existing customers to Tenable One and consolidating multiple asset types onto one platform [6][41] - **AI Integration**: Leveraging AI for assessing generative AI usage within organizations, enhancing security measures [7][68] Competitive Landscape - **VM Market Concerns**: While growth in the VM market has moderated, Tenable continues to attract new customers, with 40%-50% being greenfield opportunities [28][30] - **Competitors**: Main competitors include Rapid7 and Qualys, with some presence from CrowdStrike and Microsoft. However, Tenable maintains strong win rates against these competitors [34][35][38] Customer Engagement - **Pipeline Development**: Strong demand for new integrations and features, with over 150 customers interested in demos post-Vulcan acquisition [49][50] - **Cloud Security Portfolio**: Tenable offers a full CNAP solution, competing effectively against Wizz and Palo Alto by leveraging its existing customer base [52][53] Financial Management - **Capital Allocation**: M&A remains a priority over share buybacks, with sufficient capital available for strategic investments [74][75] Leadership Structure - **Co-CEO Model**: Unique leadership structure with co-CEOs dividing responsibilities effectively, enhancing operational efficiency [78][82] Additional Insights - **Market Trends**: The shift towards exposure management reflects a broader industry trend of consolidating cybersecurity tools into comprehensive platforms [41][43] - **Customer Sentiment**: Concerns about pricing and vendor lock-in are influencing customer decisions, particularly in the cloud security space [56][59] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Tenable's position in the cybersecurity landscape and its plans for future growth.

Core Insights - Tenable announced the recipients of its Global Partner Awards during the fifth annual Tenable AssureWorld virtual partner conference, recognizing partners for their contributions to customer success in exposure management [1][2] - The awards included categories such as Global System Integrator of the Year awarded to IBM, Tenable OT Security Partner of the Year awarded to Siemens Energy, MSSP Partner of the Year awarded to Telefonica, and Global Technology Partner of the Year awarded to AWS [1] - Tenable emphasizes a partner-first approach, focusing on investing in and supporting channel partners to achieve collective success in cybersecurity [2] Company Overview - Tenable is positioned as the exposure management company, addressing cybersecurity gaps that can impact business value, reputation, and trust [4] - The company offers an AI-powered exposure management platform that integrates security visibility and action across various environments, including IT infrastructure and cloud [4] - Tenable serves approximately 44,000 customers globally, aiming to reduce business risk through effective exposure management [4] Partner Program - The Tenable Assure Partner Program provides partners with sales and marketing support, training, certification opportunities, and technical assistance to enhance their business capabilities [3] - The program is designed to help partners deliver exceptional exposure management and risk mitigation solutions [3]

Financial Data and Key Metrics Changes - The company reported a net income of $30,500,000 or $0.99 per diluted share for Q1 2025, compared to $14,200,000 or $0.47 per diluted share in Q1 2024, reflecting a significant increase in profitability despite $31,800,000 in losses related to California wildfires [5][14] - Gross premiums earned rose to $353,800,000, up 3.6% from $341,400,000 in the prior year quarter, driven by business growth and rating actions [15] - Net premiums earned increased to $200,000,000, up 11.5% from $179,400,000 in the prior year quarter, reflecting growth in gross premiums earned and a reduction in ceded premiums [16] - The loss ratio improved to 49.7%, down from 56.9% in the same quarter last year, indicating better underwriting performance [17] - The net combined ratio for the quarter was 84.5%, down 9.5 points from 94% in the prior year quarter, driven by lower net loss and expense ratios [19] Business Line Data and Key Metrics Changes - The policy count decreased by 3% from Q4 2024, primarily due to normal attrition and seasonality, but was partially offset by new personal lines business production [6][8] - The company is selectively writing new personal lines business while maintaining a focus on risk management and stringent underwriting [10] Market Data and Key Metrics Changes - The company has achieved rate adequacy in over 90% of its operating regions, positioning it to grow personal lines policies in force [6] - The competitive landscape in the commercial residential market is intensifying, but the company remains committed to ensuring rate adequacy [8] Company Strategy and Development Direction - The company is pivoting its strategy towards managed growth, with plans to open more territories for new personal lines business [9] - Legislative changes in Florida are expected to positively impact the economics of writing new business and reduce frivolous lawsuits [10][11] - The company is focusing on enhancing its E and S business to adapt to changing market dynamics and provide necessary insurance protection [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain profitability despite catastrophe losses, attributing this to strategic initiatives implemented over several years [6][14] - The company anticipates an increase in premiums in force in the second half of the year as it continues to open production capacity [9] - Management expects growth to accelerate in 2026 as new business production ramps up and the impact of exposure management initiatives diminishes [10] Other Important Information - The company ended the quarter with total assets of $2,200,000,000 and shareholders' equity of $329,000,000, with book value per share increasing to $10.62 [20] - The average duration of the fixed income core portfolio was 3.1 years, reflecting a strategy to take advantage of higher yields [20] Q&A Session Summary Question: Guidance on ceded premium dollars for Q2 and Q3 - Management indicated that ceded premium dollars are expected to be slightly up for the remainder of the year, but not significantly [23][24][25] Question: Outlook on rates over the next two years - Management stated that they will maintain rate adequacy and adjust rates as necessary, with a focus on maintaining margins [26][28] Question: Competition in personal lines and new distribution - Management noted that they are gradually reopening with existing agents and are prepared to compete with new entrants in the market [29][30] Question: Sustainability of underlying loss levels - Management expressed confidence that current loss trends are favorable and sustainable barring major storms [31][32] Question: Competitive environment by state - Management highlighted differences in competitive dynamics across states, with Florida experiencing new entrants while California presents opportunities due to admitted carriers leaving [47][48]

Financial Data and Key Metrics Changes - The company reported a net income of $30,500,000 or $0.99 per diluted share for Q1 2025, compared to $14,200,000 or $0.47 per diluted share in the same quarter last year, reflecting a significant increase in profitability despite $31,800,000 in losses related to California wildfires [5][14] - Gross premiums earned rose to $353,800,000, up 3.6% from $341,400,000 in the prior year quarter, driven by higher gross premiums written [15] - Net premiums earned increased to $200,000,000, up 11.5% from $179,400,000 in the prior year quarter, reflecting growth in gross premiums earned and a reduction in ceded premiums [15] - The loss ratio improved to 49.7%, down from 56.9% in the same quarter last year, indicating better underwriting performance [17] - The net combined ratio for the quarter was 84.5%, down 9.5 points from 94% in the prior year quarter, driven by lower net loss and expense ratios [19] Business Line Data and Key Metrics Changes - The policy count decreased by 3% from Q4 2024, primarily due to normal attrition and seasonality, although there was early ramp-up in new personal lines business production [6] - The company is selectively writing new personal lines business while maintaining a focus on risk management and stringent underwriting [10] Market Data and Key Metrics Changes - The company has achieved rate adequacy in over 90% of its operating regions, positioning it to grow personal lines policies in force [6] - The competitive landscape in the commercial residential market is intensifying, but the company remains committed to ensuring rate adequacy without sacrificing profitability [7] Company Strategy and Development Direction - The company is pivoting its strategy towards managed growth by opening new territories for personal lines business, with nearly 75% of production capacity open as of April 2025 [9][10] - Legislative changes in Florida are expected to positively impact the economics of writing new profitable business, potentially reducing reinsurance pricing in 2026 [10][11] - The company is focusing on enhancing rate adequacy, managing exposure, and investing in technology and infrastructure to drive long-term shareholder value [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining profitability despite catastrophe losses, attributing this to strategic initiatives implemented over the years [6][14] - The company anticipates an increase in premiums in force in the second half of the year, with expectations for growth to accelerate in 2026 as new business production ramps up [8][10] - Management noted that favorable legislative impacts are contributing to improved loss trends, which are expected to remain stable [31] Other Important Information - The company ended the quarter with total assets of $2,200,000,000 and shareholders' equity of $329,000,000, with book value per share increasing to $10.62 [20] Q&A Session Summary Question: Guidance on ceded premium dollars for Q2 and Q3 - Management indicated that ceded premium dollars are expected to increase slightly for the remainder of the year, but not significantly [23][25] Question: Outlook on rates over the next few years - Management stated that they are focused on maintaining rate adequacy and will adjust rates as necessary based on the regulatory environment [26] Question: Competition in personal lines and new distribution - Management clarified that they are gradually reopening existing distribution channels and are prepared to compete with new entrants in the market [29] Question: Understanding the dynamics of PIFs and premiums in Florida - Management explained that the decrease in premiums is due to less substantial rate increases and increased competition in the commercial markets [36][37] Question: Competitive environment by state - Management noted that Florida is seeing new entrants, while other states remain stable, with California experiencing more opportunities due to admitted carriers leaving the state [44][46]

At Tenable, Doerr will lead the company's global product organization, overseeing strategy, innovation and execution across its growing cybersecurity portfolio. His appointment comes at a pivotal moment, as Tenable prepares to launch a significantly expanded version of its Tenable One platform—designed to deliver the most comprehensive exposure management capabilities in the industry. It also coincides with Tenable's demonstrated momentum in cloud security. COLUMBIA, Md., April 29, 2025 (GLOBE NEWSWIRE) -- ...