Tenable (TENB) FY Conference Transcript

Summary of Tenable Conference Call Company Overview - Company: Tenable - Core Business: Transitioned from vulnerability management (VM) to a broader exposure management platform, Tenable One, integrating various asset types and focusing on risk-based security [2][5][6] Key Points Industry Dynamics - Market Position: Tenable has expanded its total addressable market (TAM) significantly, now assessing assets in operational technology (OT), identity, cloud security, attack surface management, and web application security [5][6] - Acquisitions: Recent acquisitions include Vulcan and Apex, enhancing capabilities in integrating third-party assets and AI security [5][7][68] Financial Performance - Q1 Performance: Strong start to the year with all metrics beating guidance, but 2025 outlook lowered from 7%-9% to 6%-8% due to federal sector uncertainties and global trade scrutiny [8][9][10] - Federal Sector Impact: Approximately 15% of business tied to the federal sector, with reduced visibility affecting growth expectations [10][11][12] Growth Strategy - Focus on Exposure Management: Transitioning existing customers to Tenable One and consolidating multiple asset types onto one platform [6][41] - AI Integration: Leveraging AI for assessing generative AI usage within organizations, enhancing security measures [7][68] Competitive Landscape - VM Market Concerns: While growth in the VM market has moderated, Tenable continues to attract new customers, with 40%-50% being greenfield opportunities [28][30] - Competitors: Main competitors include Rapid7 and Qualys, with some presence from CrowdStrike and Microsoft. However, Tenable maintains strong win rates against these competitors [34][35][38] Customer Engagement - Pipeline Development: Strong demand for new integrations and features, with over 150 customers interested in demos post-Vulcan acquisition [49][50] - Cloud Security Portfolio: Tenable offers a full CNAP solution, competing effectively against Wizz and Palo Alto by leveraging its existing customer base [52][53] Financial Management - Capital Allocation: M&A remains a priority over share buybacks, with sufficient capital available for strategic investments [74][75] Leadership Structure - Co-CEO Model: Unique leadership structure with co-CEOs dividing responsibilities effectively, enhancing operational efficiency [78][82] Additional Insights - Market Trends: The shift towards exposure management reflects a broader industry trend of consolidating cybersecurity tools into comprehensive platforms [41][43] - Customer Sentiment: Concerns about pricing and vendor lock-in are influencing customer decisions, particularly in the cloud security space [56][59] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Tenable's position in the cybersecurity landscape and its plans for future growth.