Tenable(US:TENB)2022-02-02 05:23Financial Data and Key Metrics Changes - Revenue for Q4 was $149 million, representing a 26% year-over-year growth, exceeding the midpoint of guidance by $5 million [28] - Calculated current billings (CCB) grew 29% year-over-year to $194 million, with a notable acceleration from 20% in Q1 to 29% in Q4 [29][30] - The company finished the year with $541.1 million in revenue, a 23% growth year-over-year [28] Business Line Data and Key Metrics Changes - The company added 562 new enterprise platform customers in Q4, a record for a single quarter, and 100 net new six-figure customers, also a record [11][32] - Exposure solutions, including Tenable.io and Tenable.ep, continued to gain traction, driven by customer needs to assess risk across various assets [33] - Accurics' contribution to CCB in Q4 was nominal as the acquisition closed in the same quarter, but it is expected to enhance cloud capabilities moving forward [33][34] Market Data and Key Metrics Changes - The company experienced strong performance across all geographies and both new and renewal business [30] - 86% of enterprises are expected to increase spending on active directory security in 2022, indicating a growing market opportunity [15] - The company noted a significant uptick in expansion rates following the discovery of Log4j, highlighting increased customer demand for coverage [30] Company Strategy and Development Direction - The company aims to integrate new capabilities into its unified exposure platform (EP), enhancing analytics and providing a holistic risk assessment [78] - Recent acquisitions, including Accurics and Cymptom, are expected to strengthen the product suite and expand into strategic markets [21][52] - The focus remains on balancing growth with profitability, with a long-term goal of becoming a rule of 50 company [53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business outlook for 2022, citing strong performance in Q4 and the full year [50] - The guidance for CCB growth in 2022 is set at 22% to 23%, with some continued tailwinds from Log4j expected in Q1 [51] - Management emphasized the importance of understanding cyber risk in a holistic manner, integrating various exposure solutions [24] Other Important Information - The company achieved a gross margin of 82% for Q4, with expectations for modest impacts on margins due to ongoing investments [35][36] - The company finished the quarter with $512 million in cash and short-term investments, providing strong visibility for 2022 [45] - The company generated $22.4 million of unlevered free cash flow in Q4, totaling $95.2 million for the year, a significant increase over 2020 [46] Q&A Session Summary Question: What was the impact of Log4j in Q4 and expectations for 2022? - Management noted that Log4j surfaced in December, contributing to strong renewal and expansion sales, particularly in the mid-market [58][60] - For 2022, the guidance reflects continued tailwinds from Log4j in Q1, with more modest contributions expected throughout the year [61] Question: Can you provide insight on the impact of Accurics and Cymptom on revenue guidance for 2022? - Management indicated that Accurics will contribute more significantly in the second half of the year, while Cymptom will be integrated into existing products [66][67] Question: What are the expectations for gross margins moving forward? - Management expects gross margins to track modestly lower from Q4 levels due to continued investments, but potential improvements could arise from better-than-expected top-line performance [68][69] Question: How is the bundling strategy for EP performing? - Management reported rapid adoption of EP, with a natural progression to include active directory and cloud capabilities, enhancing the overall value proposition [72][74] Question: What is the current competitive landscape for Tenable? - Management highlighted strong differentiation in the market, particularly in response to high-profile vulnerabilities like Log4j, which has increased visibility and demand for their solutions [102][104]