Tenable(US:TENB)2025-04-29 20:30Financial Data and Key Metrics Changes - The company reported revenue of $239.1 million for Q1 2025, representing an 11% year-over-year growth and exceeding the midpoint of the guided range by $5.1 million [28][34] - Unlevered free cash flow reached a record $87 million during the quarter, influenced by seasonal timing of collections from Q4 sales [32][34] - Gross margin remained stable at 82%, consistent with expectations, while the percentage of recurring revenue was high at 96% [28][29] Business Line Data and Key Metrics Changes - Current billings grew 9% year-over-year to $215.4 million, driven largely by Tenable One and cloud security [27] - The company added 361 new enterprise platform customers, with a net dollar expansion rate of 108% [27][28] - The company secured significant wins, including a major federal contract managing over 1 million assets and a 7-figure expansion with a global financial institution [20][21] Market Data and Key Metrics Changes - The company noted strong momentum in exposure management, particularly in the public sector, despite macroeconomic uncertainties [34][35] - The competitive environment showed historically high win rates against traditional vulnerability management players, with notable 7-figure deals [52][54] - The company is seeing increased demand for integrated solutions that combine first-party assessments with third-party data [22][23] Company Strategy and Development Direction - The company is focused on expanding its exposure management strategy and enhancing its product offerings, particularly through the integration of AI capabilities [12][88] - The strategic priority includes consolidating vendor solutions for customers and enhancing the Tenable One platform to provide a comprehensive view of risk [19][22] - The company aims to leverage its competitive moat in exposure data to lead in AI-powered exposure management [12][88] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the outlook due to increased macroeconomic uncertainty and potential disruptions in the public sector [34][35] - The company anticipates longer lead times for procurement decisions, particularly in the public sector, while demand generation remains strong [45][71] - Despite uncertainties, management reiterated confidence in achieving operating income and free cash flow targets for the year [47][34] Other Important Information - The company completed the acquisition of Vulcan, which is expected to contribute approximately $5 million to growth, primarily in the latter half of the year [106] - The company repurchased 1.6 million shares for $60 million, with a total of nearly 4.3 million shares repurchased since November 2023 [33] Q&A Session Summary Question: What is driving the incremental caution in guidance? - Management noted ongoing macro uncertainty, particularly in the public sector, and acknowledged strong demand generation despite the cautious outlook [42][44] Question: How is the competitive environment in vulnerability management? - Management reported historically high win rates against traditional players and noted strong performance in securing large deals [52][54] Question: How does the acquisition of Wiz impact the cloud space? - Management views the acquisition as a market opportunity, noting increased activity and interest from customers seeking alternatives [58][60] Question: What are the strategic priorities for the next 100 days? - The focus will be on expanding market opportunities, enhancing the exposure management platform, and leveraging AI for better insights [84][88]