Tenable(US:TENB)2021-10-27 01:42Financial Data and Key Metrics Changes - Revenue for Q3 2021 was $138.7 million, representing a 23% year-over-year growth, exceeding the midpoint of the guided range by $4.7 million [24] - Calculated current billings (CCB) grew 25% year-over-year to $166.9 million, up from 23% growth reported last quarter [24][25] - Gross margin was 83%, up one point from the previous quarter, with expectations to remain at current levels in Q4 [33][34] - EPS in Q3 was $0.07, which was $0.05 better than the midpoint of the guided range [39] Business Line Data and Key Metrics Changes - Tenable AD and OT products showed notable traction, contributing several points of growth in Q3 [28][29] - Cloud products, including Tenable.io and Tenable.ep, represented over 50% of total new sales, with growth rates for these products exceeding the overall company growth rate [26][27] - The public sector business accounted for 17% of total company sales, benefiting from a favorable spending environment [30] Market Data and Key Metrics Changes - The company added 499 new enterprise platform customers in Q3, a record for any single quarter, and 62 net new six-figure customers [25] - The demand environment in the public sector has been strong, driven by executive orders and legislative proposals [66] Company Strategy and Development Direction - The company is focused on integrating new products into a unified platform to enhance capabilities and customer value [19][18] - A global strategic partnership with Splunk was announced to secure Active Directory and converged OT environments [13] - The acquisition of Accurics is expected to significantly enhance cloud capabilities and support a shift-left approach in security [14][105] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business environment, expecting Q4 revenue to be in the range of $143 million to $145 million [42] - The company anticipates continued strong demand for its products, particularly in the context of heightened cybersecurity threats [72] - Management highlighted the importance of securing Active Directory as a critical area of focus, especially in light of recent high-profile attacks [71] Other Important Information - The company plans to hold a virtual Investor Day on December 15, providing further insights into product momentum [21] - The company has a strong cash position with $652 million in cash and short-term investments, including $336 million from a recent credit facility [40] Q&A Session Summary Question: Regarding the seven-figure win with the OT product - The win was with an existing VM customer who expanded their purchase to include AD and OT components, resulting in a several hundred thousand dollars ACV increase [52] Question: Contribution of cloud sales to overall revenue - Cloud products accounted for over 50% of new sales, with strong demand driven by digital transformation initiatives [54] Question: Organic vs. inorganic growth in revenue - Revenue growth was a combination of both organic strength and contributions from newly acquired products, particularly AD and OT [58] Question: Future of federal spending and its impact - The company expects continued strong performance in the federal market, supported by a heightened awareness of cybersecurity [66] Question: Adoption rates of new products within the installed base - The company is seeing positive trends in net dollar expansion rates, indicating strong adoption of new products among existing customers [81] Question: Bundling strategy for products like EP - The company has seen strong traction with EP, which integrates various products to create unique value propositions for customers [88] Question: MSSP channel investments and their impact - The MSSP channel is viewed as a long-term growth opportunity, with new partnerships contributing positively to sales [99]