Core Thesis - Tenable Holdings, Inc. (TENB) is positioned as a leader in proactive cybersecurity, focusing on comprehensive exposure management rather than reactive breach detection [3][4] Company Overview - TENB's share price was $22.47 as of January 28th, with a forward P/E ratio of 13.00 [1] - The company serves 44,000 customers, including approximately 65% of the Fortune 500, with no single customer contributing more than 2% of revenue [4] Product and Market Position - The flagship platform, Tenable One, consolidates various security tools, providing a unified view of the digital attack surface across on-premises IT, cloud applications, operational technology, and remote devices [3][4] - This holistic approach enables companies to prioritize and address critical risks proactively, reflecting a shift in the cybersecurity industry where less than 5% of global spending is currently allocated to preemptive measures [4] Financial Performance - TENB is profitable on a GAAP basis and generates positive free cash flow while investing heavily in R&D to enhance Tenable One's capabilities in AI, cloud, and exposure management technologies [5] - The company has engaged in strategic acquisitions to bolster platform functionality and market position, including Bit Discovery, Ermetic, Eureka Security, Vulcan Cyber, and Apex Security [5] Strategic Initiatives - TENB has returned capital to shareholders through significant buybacks and has aligned management incentives with performance-linked equity [5] - Rumors of a potential sale have emerged, supported by increased professional fees and management's preparation for strategic options [6] Investment Catalysts - TENB's strong market position, deep ties to U.S. federal and public sector clients, and disciplined capital allocation present multiple catalysts for investment, including organic growth, strategic M&A, and potential acquisition upside [6]

Executives repeatedly described AI as an increasingly common driver of demand. Vintz said AI is showing up in “nearly every customer conversation,” with organizations moving quickly but lacking visibility into where AI is running, what it touches, and who can access it—creating what he called an “invisible attack surface.” He argued that AI-specific point products often leave gaps across applications, identities, cloud workloads, and data, supporting Tenable’s view that a platform approach is required.The c ...

Tenable (NasdaqGS:TENB) Q4 2025 Earnings call February 04, 2026 04:30 PM ET Company ParticipantsAbhishek Murali - Equity Research AssociateBrian Essex - Executive Director of U.S. Software Equity ResearchErin Carney - VP of Investor RelationsMark Thurmond - Co-CEOMatt Brown - CFOSaket Kalia - DirectorSteve Vintz - Co-CEOConference Call ParticipantsJonathan Ho - Partner and Research AnalystJoseph Gallo - Secuity Software Equity Research AnalystMike Cikos - Senior AnalystPatrick Colville - Director and Equity ...

Tenable (NasdaqGS:TENB) Q4 2025 Earnings call February 04, 2026 04:30 PM ET Company ParticipantsAbhishek Murali - Equity Research AssociateBrian Essex - Executive Director of U.S. Software Equity ResearchErin Carney - VP of Investor RelationsMark Thurmond - Co-CEOMatt Brown - CFOSaket Kalia - DirectorSteve Vintz - Co-CEOConference Call ParticipantsJonathan Ho - Partner and Research AnalystJoseph Gallo - Secuity Software Equity Research AnalystMike Cikos - Senior AnalystPatrick Colville - Director and Equity ...

Tenable (NasdaqGS:TENB) Q4 2025 Earnings call February 04, 2026 04:30 PM ET Speaker4Greetings, and welcome to the Tenable fourth quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Erin Carney, Vice President, Investor R ...

Tenable exceeds all guided metrics for the fourth quarter and full year 2025, announces increase of $150 million to share repurchase authorization Fourth quarter revenue of $260.5 million, up 11% year-over-year; full year revenue of $999.4 million, up 11% year-over-yearFourth quarter calculated current billings of $327.8 million, up 8% year-over-year; full year calculated current billings of $1.049 billion, up 8% year-over-yearFull year net cash provided by operating activities of $266.8 million; full year ...

Summary of Tenable's Conference Call Company Overview - **Company**: Tenable - **Industry**: Cybersecurity, specifically focusing on exposure management and vulnerability management Key Points Financial Performance - **Q3 Results**: Exceeded expectations on both revenue and earnings, with an 11% revenue growth [11][5] - **Operating Margin**: Increased by 350 basis points year-over-year despite an 18% increase in R&D spending [13] - **Outlook**: Strong guidance for the full year, indicating positive momentum [11] Product and Market Insights - **Exposure Management Platform**: Significant traction with over 300 new customers added, indicating strong demand for the platform [6][5] - **Average Selling Prices (ASPs)**: Notably higher ASPs for exposure management solutions, reflecting increased customer value [7] - **AI Integration**: Launched AI Exposure to identify vulnerabilities in AI applications, enhancing the platform's capabilities [8] Market Position and Strategy - **Category Creation**: Tenable has established exposure management as a distinct category, gaining recognition from industry analysts [16] - **Market Opportunity**: Gartner identifies exposure management as a major opportunity in cybersecurity, with a shift from reactive to proactive security [17][18] - **Customer Insights**: Organizations face challenges managing data from over 80 different security vendors, creating a need for unified risk management [15] Product Adoption and Growth - **Tenable One**: Represents about one-third of the enterprise business, with expectations for significant growth [22][26] - **Customer Retention**: Higher retention rates for Tenable One compared to other products, indicating stickiness and customer satisfaction [46][40] - **Future Growth**: Anticipated that Tenable One will account for over 60% of new sales in the future [26] Challenges and Considerations - **Public Sector Dynamics**: While Tenable has a strong presence in the U.S. public sector, recent leadership changes and market conditions have made new business transactions more challenging [55] - **Billing Practices**: Shift towards annual billing for multi-year agreements is distorting current metrics, necessitating a reevaluation of how to measure growth [37][38] Future Outlook - **Continued Investment**: Commitment to R&D and potential acquisitions to enhance product offerings and market position [58][59] - **Proactive Security Shift**: The market is moving towards proactive security measures, with expectations that spending on proactive solutions will increase significantly over the next 5-10 years [28] Analyst Recognition - **Industry Validation**: Tenable has been recognized as a leader in exposure management by multiple industry analysts, reinforcing its market position [16][60] Additional Insights - **Vulnerability Landscape**: There are currently 300,000 unique vulnerabilities identified, with over 500 billion instances, highlighting the scale of the cybersecurity challenge [19] - **AI Threats**: The rise of AI is leading to more vulnerabilities and necessitating a shift in security strategies [20] This summary encapsulates the key insights and strategic direction of Tenable as discussed in the conference call, highlighting both opportunities and challenges in the cybersecurity landscape.

Tenable Conference Call Summary Company Overview - **Company**: Tenable (NasdaqGS:TENB) - **Industry**: Cybersecurity Key Points and Arguments AI and Security Landscape - The AI threat landscape is challenging traditional reactive security approaches, necessitating a shift towards proactive measures, termed "fireproofing" rather than "firefighting" [5][11][13] - Companies are increasingly focused on three questions regarding AI: integration into products, internal productivity, and safeguarding AI usage [5][7] - Tenable's product, AI-Aware, provides visibility into AI usage within customer environments, helping to protect against misuse and ensuring compliance with policies [7][8] Customer Growth and Tenable One - In Q3, Tenable added nearly 450 new enterprise customers, with 40% of new business growth attributed to Tenable One, the company's exposure management platform [14][16] - Tenable One allows customers to assess vulnerabilities across their environments, providing risk ranking and prioritization tools for overwhelmed security teams [16][17] - The company is optimistic about future growth as more customers transition from point solutions to the comprehensive Tenable One platform [18][32] Market Dynamics and Competitive Landscape - Tenable is experiencing strong win rates against competitors, particularly in transitioning existing VM customers to Tenable One [19][22] - The company sees significant opportunities in both greenfield (new AI and cloud opportunities) and brownfield (existing customer transitions) markets [21][22] - The net retention rate is stable in the 105%-107% range, with expectations of slight declines in the near term due to historical growth comparisons [25][28] Federal Sector Performance - Tenable's public sector business accounts for approximately 15% of revenue, with federal customers representing about half of that [64][66] - The company has successfully navigated uncertainties in the federal sector and expects continued opportunities, especially with FedRAMP certification for Tenable One [71] Operational Efficiency and Margin Expansion - In Q3, Tenable achieved a 23% operating margin, up 350 basis points year-over-year, despite an 18% increase in R&D spending [75][76] - The company is focused on improving sales and marketing efficiency while continuing to invest in product development [87][88] Future Outlook and Demand Environment - Tenable is optimistic about the cybersecurity budget landscape, with a healthy pipeline and continued focus on AI and exposure management [93][96] - The company aims to expand its existing customer base onto Tenable One, which is expected to enhance retention and growth opportunities [96][98] Strategic Positioning - Tenable is well-positioned in the exposure management market, with recognition from industry analysts such as IDC, Forrester, and Gartner [101][102] - The management team is focused on execution and capitalizing on market opportunities, reinforcing confidence in the company's future [101][102] Additional Important Insights - The company is open to future acquisitions if they align with strategic goals, but currently focuses on maximizing the effectiveness of existing technologies [89][90] - Tenable's cloud security offerings are gaining traction, with efforts to increase awareness among potential customers [53][55][59]

Group 1 - Cyber attacks are on the rise, making sophisticated cybersecurity solutions essential for protection [1] - Tenable, with a market capitalization of $3.5 billion, is smaller than industry leaders but has a significant addressable market and has increased its 2025 revenue forecast, indicating business momentum [2] - Tenable stock is currently 52% below its record high from 2022, presenting a potential buying opportunity [2] Group 2 - Tenable's Nessus platform is widely deployed for vulnerability management, scanning systems and networks for weaknesses [4] - Nessus has over 2 million users, providing a large customer base for cross-selling additional products [5] - Tenable has developed a suite of cybersecurity solutions to protect identities, manage assets, and secure cloud networks [5] Group 3 - Tenable One is a comprehensive exposure management platform that aggregates various products, including AI-powered solutions [6] - The ExposureAI feature within Tenable One identifies potential attack paths and assists cybersecurity managers in threat mitigation [6] - Tenable One accounted for 40% of new business in the third quarter, highlighting its role in customer acquisition [7] Group 4 - Tenable specializes in exposure management within the cybersecurity industry and offers a platform that combines its best products [8] - The stock trades at a significant discount compared to peers, indicating potential investment opportunities [8]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $252.4 million, representing an 11.2% year-over-year growth [20] - Non-GAAP gross margin was 81.6%, an increase from 81.4% in Q3 2024 [21] - Non-GAAP income from operations was $58.9 million, or 23.3% of revenue, compared to $45 million, or 19.8% of revenue in Q3 2024 [21] - Non-GAAP earnings per share for the quarter was $0.42, an increase of 31.3% from $0.32 in Q3 2024 [22] - Cash and short-term investments totaled $383.6 million, with unleveraged free cash flow of $58.5 million for the quarter [22][23] Business Line Data and Key Metrics Changes - Tenable One, the exposure management platform, represented approximately 40% of new business during the quarter [7] - 437 new enterprise platform customers were added, a 13% increase compared to Q3 2024 [7] - The percentage of recurring revenue remained high at 95% [20] Market Data and Key Metrics Changes - Tenable was recognized as a leader in exposure management by Forrester and IDC during Q3 [13] - The company reported a net dollar expansion rate of 106% [21] Company Strategy and Development Direction - The company is focusing on a shift from reactive to preemptive security, driven by advancements in AI [8][9] - Significant investments in R&D, up over 20% year-to-date, are aimed at enhancing Tenable One [10] - The company is building a comprehensive exposure management platform that integrates various security tools and data sources [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the pipeline and renewal business, indicating minimal exposure to potential government shutdown impacts [31][38] - The company raised its full-year guidance for calculated current billings and revenue, reflecting confidence in sustained growth [24][25] Other Important Information - The company repurchased 2 million shares for $60 million during the quarter, totaling 8.3 million shares repurchased for $300 million since November 2023 [23] - The company launched Tenable AI Exposure to help organizations manage risks associated with generative AI [10] Q&A Session Summary Question: Performance in U.S. Federal vertical - Management noted strong performance in the public sector and U.S. Federal, in line with expectations despite potential shutdowns [31] Question: Impact of CISA 2015 expiration on CVE reporting - Management does not anticipate significant negative impacts from the expiration based on current feedback [39] Question: Changes to guidance philosophy - Management indicated no substantial changes to guidance philosophy, emphasizing a high-functioning team [45] Question: Billings guidance and visibility - Management expressed increased positivity about the year due to strong Q3 performance and visibility into Q4 [47] Question: AI innovation roadmap - Management is considering both organic growth and M&A for AI innovations, focusing on proactive security [74] Question: Percentage of customers on Tenable One - Approximately 3,000 out of 18,000 enterprise customers are using Tenable One, with significant upsell opportunities [64] Question: Demand environment across markets - Demand was consistent across various sectors, with strong performance in new customer acquisitions [92] Question: Multi-cloud support and cloud security performance - Management noted active discussions regarding multi-cloud support and expressed optimism about cloud business growth [99]