Tenable(US:TENB)2025-02-06 03:56Financial Data and Key Metrics Changes - The company achieved 11% calculated current billings (CCB) growth, exceeding the midpoint of guidance by $7.5 million [12][36] - Revenue for the quarter was $235.7 million, representing 11% year-over-year growth and exceeding the midpoint of guidance by $4.7 million [38][44] - Operating margin was 25%, significantly better than expectations, with a full-year operating margin of 20%, up from 15% the previous year [43][44] - Generated $86 million in unlevered free cash flow for the quarter, up from $61 million in the previous quarter [46][96] Business Line Data and Key Metrics Changes - Strong performance in Exposure Management, with Tenable One reaching a record 40% of new business sales [13][65] - Cloud Security sales more than doubled during the quarter, with significant wins across both public and private sectors [20][71] - The company added 485 new enterprise platform customers and 135 net new six-figure customers during the quarter [36][88] Market Data and Key Metrics Changes - The company noted a cautious outlook for U.S. Federal business due to the transition of a new administration, impacting guidance [51][102] - The competitive environment in the Vulnerability Management (VM) space showed strong momentum, with high win rates against competitors [111][113] Company Strategy and Development Direction - The company plans to increase investment in product development and go-to-market strategies in 2025 while expanding operating and free cash flow margins [22][73] - The acquisition of Vulcan Cyber is aimed at enhancing data capabilities and accelerating the delivery of automated remediation capabilities [15][18] - The company remains committed to a balanced growth approach and returning capital to shareholders through a share repurchase program [22][74] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Exposure Management market opportunity and the transformative potential of their solutions [84][86] - The company expects to deliver unlevered free cash flow in the range of $285 million to $295 million for 2025, above previous targets [103][104] - Management highlighted the importance of sales efficiency and competitive differentiation in the current market landscape [86][113] Other Important Information - The company finished the quarter with $577 million in cash and short-term investments, providing strong visibility into expected revenue [45][95] - The board increased the share repurchase authorization by $200 million, with $185 million remaining [47][97] Q&A Session Questions and Answers Question: Competitive Position in VM and Exposure Management - Management feels confident about the momentum in VM, noting better-than-expected growth and competitive displacements [110][112] Question: Caution on Federal Business - Management indicated caution regarding U.S. Federal business due to the transition of a new administration, with specific areas of softness noted [118][119]