Financial Data and Key Metrics Changes - Revenue for Q4 was $260.5 million, representing a year-over-year growth of 10.5%, and full-year growth of 11.0% [20][21] - Non-GAAP gross margin for Q4 was 82.7%, an increase from 81.7% in Q4 2024, while full-year gross margin was 82.1%, compared to 81.4% in the prior year [23][24] - Non-GAAP income from operations for Q4 was $63.7 million, or 24.4% of revenue, with full-year income growing to $219.0 million, or 21.9% of revenue [24] - Non-GAAP earnings per share for Q4 was $0.48, an increase of 17.1% from $0.41 in Q4 2024, and for the full year, it was $1.59, up 23.3% from $1.29 in 2024 [25] Business Line Data and Key Metrics Changes - Tenable One accounted for 46% of new business in Q4, marking a record for the company [7][22] - The company added 502 new customers in Q4, with many adopting Tenable One directly [21] - The net dollar expansion rate was 106%, exceeding expectations [23][69] Market Data and Key Metrics Changes - The company was recognized as a leader in the Exposure Management category by IDC and in the unified vulnerability management category by Forrester [14] - Tenable was named a leader in the 2025 Gartner Magic Quadrant for Exposure Assessment Platforms [14] Company Strategy and Development Direction - The company is focusing on a platform-first approach, emphasizing unified visibility, insight, and action to manage risk across complex attack surfaces [9][10] - Investments are being made in AI security and orchestration capabilities, with a strong belief that remediation will be a major part of the next chapter in exposure management [10][11] - The company aims to leverage its vast amounts of exposure data to deliver data-driven scalability and transparency [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum of Tenable One and the growing opportunity in AI exposure management [28][29] - The company expects revenue for Q1 2026 to be in the range of $257 million to $260 million, representing a year-over-year increase of 8.1% at the midpoint [29] - For full-year 2026, revenue is expected to be in the range of $1.065 billion to $1.075 billion, exceeding the $1 billion milestone for the first time [29] Other Important Information - The company repurchased 2.3 million shares for $62.5 million in Q4, with a total of 10.6 million shares repurchased for $362.4 million since November 2023 [26] - A $150 million increase to the share repurchase authorization was approved, bringing the total to $338 million [26] Q&A Session Summary Question: Can you explain the lower net additions of $100,000 ACV customers? - Management noted that while new business was strong, the expansion within large customers was more significant, indicating a shift towards larger deal sizes [35][36] Question: How is customer interest in AI exposure evolving? - AI is a prevalent topic in customer conversations, with significant interest in managing AI exposure and security [37][38] Question: What additional modules within Tenable One are customers adopting? - Customers are increasingly adopting modules for traditional VM, web app, cloud security, and securing the AI attack surface [44][45] Question: How should we interpret the guidance for CCB in 2026? - Management indicated that while there are headwinds from billings duration, they expect CCB to align with current consensus expectations due to strong underlying business momentum [47][48] Question: What is the outlook for professional services? - The demand for professional services is increasing as customers deploy the platform at scale, leading to larger transactions [61][62] Question: How is the pricing environment currently? - Management reported no pricing pressure and noted strong ASPs, particularly when selling Tenable One [90]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $260.5 million, representing a year-over-year growth of 10.5% and a full-year growth of 11.0% [19] - Non-GAAP gross margin for Q4 was 82.7%, up from 81.7% in Q4 2024, while the full-year gross margin was 82.1%, compared to 81.4% in the prior year [21] - Non-GAAP income from operations for Q4 was $63.7 million, or 24.4% of revenue, with full-year income growing to $219.0 million, or 21.9% of revenue [21][22] - Non-GAAP earnings per share for Q4 was $0.48, an increase of 17.1% from $0.41 in Q4 2024, and for the full year, it was $1.59, up 23.3% from $1.29 in 2024 [24] Business Line Data and Key Metrics Changes - Tenable One, the AI-powered exposure management platform, accounted for 46% of new business in Q4, marking a record for the company [6] - The company added 502 new customers in Q4, with many adopting Tenable One directly [20] - The net dollar expansion rate was 106%, exceeding expectations [21] Market Data and Key Metrics Changes - Tenable was recognized as a leader in the 2025 Gartner Magic Quadrant for Exposure Assessment Platforms and was noted as a top competitor in the AI Vendor Race [13] - The demand for preemptive security solutions is increasing, with organizations seeking comprehensive visibility into their AI environments [6][15] Company Strategy and Development Direction - The company is focusing on a platform-first approach, emphasizing unified visibility and action to manage complex attack surfaces [9] - Investments are being made in AI security and remediation capabilities, with a belief that remediation will be a significant part of future exposure management [10] - The company aims to leverage its extensive exposure data to provide unmatched insights and drive automation in risk reduction [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum of Tenable One and the growing opportunities in AI exposure management, expecting to exceed $1 billion in revenue for the first time in 2026 [28] - The company anticipates a revenue range of $1.065 billion to $1.075 billion for full-year 2026, representing a year-over-year increase of 7.1% [28] - Management acknowledged the challenges posed by changes in billing patterns but remains optimistic about underlying business strength and growth potential [26][30] Other Important Information - The company repurchased 2.3 million shares for $62.5 million in Q4, with a total of 10.6 million shares repurchased since November 2023 [25] - Restructuring efforts incurred $3.1 million in expenses in Q4, with an expectation of approximately $5 million more in the first half of 2026 [29] Q&A Session Summary Question: Regarding large customer cohort and net additions of $100,000 ACV customers - Management noted strong new business with 500 new customers added, and expansion within large customers was also strong, indicating higher transaction values [34][35] Question: On AI exposure and customer journey - AI is a prevalent topic in customer conversations, with significant interest in managing AI exposure and security [36] Question: Adoption of additional modules within Tenable One - Customers are increasingly adopting the platform for holistic risk assessment, with a focus on visibility, insights, and action [43][44] Question: Guidance on CCB and growth expectations - Management indicated that while CCB growth may face headwinds, overall revenue growth is expected to remain strong due to the success of Tenable One [46][50] Question: Strength in professional services - The increase in professional services is attributed to larger deployments and the need for comprehensive exposure management solutions [63] Question: Current pricing environment and ASP trends - Management reported no pricing pressure and noted strong ASPs, particularly when consolidating multiple tools into Tenable One [88][91]