Tenable(US:TENB)2019-05-01 02:37Financial Data and Key Metrics Changes - Revenue for Q1 2019 was $80.3 million, representing a 36% year-over-year growth [6][24] - Calculated current billings grew 25% year-over-year to $81.2 million [6][24] - Approximately 90% of revenue recognized in the quarter was recurring, benefiting from the subscription model [24] - Gross margin was 85% in Q1, slightly down from 86% in Q1 last year [27] - Non-GAAP loss from operations was $13.2 million, compared to a loss of $12.9 million in Q1 last year [32][33] Business Line Data and Key Metrics Changes - The company added 311 new enterprise platform customers in Q1, with 40% of new logo adds coming from greenfield opportunities [25] - The number of customers spending over $100,000 annually increased by 41, bringing the total to 494 [25] Market Data and Key Metrics Changes - The total addressable market for Cyber Exposure is estimated to reach $16 billion in 2019 [16] - The operational technology security market is expected to grow at a 46% CAGR through 2022 [15] Company Strategy and Development Direction - The company is focused on Cyber Exposure as a strategic priority, integrating vulnerability management with broader risk management [6][12] - Investments in product and distribution are expected to yield positive results, with an optimistic outlook for the remainder of 2019 [23] - The company aims to leverage partnerships with major players like ServiceNow, Splunk, and AWS to enhance its offerings [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the vulnerability management market is heating up, with increased engagement from corporate executives regarding security programs [40] - The company expects continued momentum in the second half of 2019, driven by product improvements and sales capacity [42] - Management expressed confidence in the company's competitive positioning and win rates, indicating strong customer demand for its solutions [46] Other Important Information - The company anticipates a non-GAAP net loss per share in the range of $0.56 to $0.52 for the full year 2019 [36] - Free cash flow burn was $3.2 million for the quarter, impacted by employee stock purchase plan activity [34] Q&A Session Summary Question: Health of the vulnerability management market - Management indicated that the market continues to heat up, with increased recognition of the importance of vulnerability management [40] Question: Guidance for current billings growth - Management expressed confidence in accelerating growth due to improved product positioning and sales capacity [42] Question: Federal business impact from the government shutdown - Management noted that the federal business performed better than expected, with no significant impact on the overall outlook for the year [44] Question: Competitive landscape and win rates - Management reported strong competitive win rates, with superior functionality and capability compared to competitors [46] Question: Update on Lumin product timing - Management confirmed that Lumin is on track for a 2019 GA release, building on the recently released Predictive Prioritization [48] Question: Interest in consolidating infrastructure management - Management noted growing interest in a unified view of IT and OT environments, driven by increased awareness and funding in the market [52] Question: Customer response to Predictive Prioritization - Management reported extremely positive feedback from customers regarding the new capabilities introduced [54] Question: Evolution of enterprise sales motion - Management highlighted ongoing investments in sales capacity and the addition of named account reps to capture larger deals [56]