Tenable(US:TENB)2026-02-04 22:30Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $260.5 million, representing a year-over-year growth of 10.5% and a full-year growth of 11.0% [19] - Non-GAAP gross margin for Q4 was 82.7%, up from 81.7% in Q4 2024, while the full-year gross margin was 82.1%, compared to 81.4% in the prior year [21] - Non-GAAP income from operations for Q4 was $63.7 million, or 24.4% of revenue, with full-year income growing to $219.0 million, or 21.9% of revenue [21][22] - Non-GAAP earnings per share for Q4 was $0.48, an increase of 17.1% from $0.41 in Q4 2024, and for the full year, it was $1.59, up 23.3% from $1.29 in 2024 [24] Business Line Data and Key Metrics Changes - Tenable One, the AI-powered exposure management platform, accounted for 46% of new business in Q4, marking a record for the company [6] - The company added 502 new customers in Q4, with many adopting Tenable One directly [20] - The net dollar expansion rate was 106%, exceeding expectations [21] Market Data and Key Metrics Changes - Tenable was recognized as a leader in the 2025 Gartner Magic Quadrant for Exposure Assessment Platforms and was noted as a top competitor in the AI Vendor Race [13] - The demand for preemptive security solutions is increasing, with organizations seeking comprehensive visibility into their AI environments [6][15] Company Strategy and Development Direction - The company is focusing on a platform-first approach, emphasizing unified visibility and action to manage complex attack surfaces [9] - Investments are being made in AI security and remediation capabilities, with a belief that remediation will be a significant part of future exposure management [10] - The company aims to leverage its extensive exposure data to provide unmatched insights and drive automation in risk reduction [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum of Tenable One and the growing opportunities in AI exposure management, expecting to exceed $1 billion in revenue for the first time in 2026 [28] - The company anticipates a revenue range of $1.065 billion to $1.075 billion for full-year 2026, representing a year-over-year increase of 7.1% [28] - Management acknowledged the challenges posed by changes in billing patterns but remains optimistic about underlying business strength and growth potential [26][30] Other Important Information - The company repurchased 2.3 million shares for $62.5 million in Q4, with a total of 10.6 million shares repurchased since November 2023 [25] - Restructuring efforts incurred $3.1 million in expenses in Q4, with an expectation of approximately $5 million more in the first half of 2026 [29] Q&A Session Summary Question: Regarding large customer cohort and net additions of $100,000 ACV customers - Management noted strong new business with 500 new customers added, and expansion within large customers was also strong, indicating higher transaction values [34][35] Question: On AI exposure and customer journey - AI is a prevalent topic in customer conversations, with significant interest in managing AI exposure and security [36] Question: Adoption of additional modules within Tenable One - Customers are increasingly adopting the platform for holistic risk assessment, with a focus on visibility, insights, and action [43][44] Question: Guidance on CCB and growth expectations - Management indicated that while CCB growth may face headwinds, overall revenue growth is expected to remain strong due to the success of Tenable One [46][50] Question: Strength in professional services - The increase in professional services is attributed to larger deployments and the need for comprehensive exposure management solutions [63] Question: Current pricing environment and ASP trends - Management reported no pricing pressure and noted strong ASPs, particularly when consolidating multiple tools into Tenable One [88][91]