Tenable(US:TENB)2021-04-28 02:39Financial Data and Key Metrics Changes - Revenue for Q1 2021 was $123.2 million, representing a 20% year-over-year growth, exceeding the midpoint of the guided range by approximately $4 million [25] - Calculated current billings (CCB) grew 20% year-over-year to $119.5 million [27] - Non-GAAP earnings per share (EPS) was $0.13, which was $0.08 better than the midpoint of the guided range [34] - Free cash flow for the quarter was $37.6 million, significantly up from $3.9 million in Q1 last year [36] Business Line Data and Key Metrics Changes - The company added 331 new enterprise platform customers, up from 319 in Q1 of the previous year [26] - The number of customers spending over $100,000 annually increased by 30% year-over-year to 866 [27] - The launch of Tenable.ep and the acquisition of Alsid contributed to strong cross-sell opportunities [13][17] Market Data and Key Metrics Changes - The company noted strong demand for both new and renewal business, particularly in the mid-market segment [28] - The mid-market represented about 25% of total sales, with shorter sales cycles compared to large enterprises [48] - Recent high-profile security breaches have heightened the demand for comprehensive vulnerability management solutions [12][19] Company Strategy and Development Direction - The company is focusing on a holistic approach to Cyber Exposure, integrating various products into a unified platform [14][20] - The acquisition of Alsid is expected to enhance the company's capabilities in Active Directory security, addressing a critical area of vulnerability [17][18] - Partnerships with IBM and HCL BigFix are aimed at enhancing the company's competitive position and expanding its ecosystem [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business environment, citing pent-up demand and a shift towards digital transformation as key drivers [28][49] - The company anticipates continued growth in the federal market, supported by increased funding for cybersecurity initiatives [63] - The outlook for Q2 2021 includes expected revenue in the range of $124 million to $126 million, reflecting a positive business environment [40] Other Important Information - The company published a corporate social responsibility report to support its environmental, social, and governance initiatives [8] - Management highlighted the importance of understanding cyber risk across the entire enterprise, especially in light of recent security incidents [43] Q&A Session Summary Question: What factors are influencing the change in demand? - Management noted that digital transformation and the complexity of new operating environments are driving demand [46] Question: How are sales cycles changing? - Sales cycles are shorter in the mid-market, contributing to strong performance in that segment [48] Question: What is the competitive landscape like? - The company continues to compete favorably with Rapid7 and Qualys, with a notable uptick in sales in the commercial market [75] Question: How does Tenable.ad fit within the portfolio? - Tenable.ad is integral to the strategy, focusing on securing Active Directory environments, which are critical targets for adversaries [70][72] Question: What is the expected impact of Tenable.ep on deal sizes? - Tenable.ep is expected to command a 60% uplift in pricing compared to core VM offerings, enhancing the company's ability to sell broader product suites [55][90]