Tenable(US:TENB)2024-05-02 03:00Financial Data and Key Metrics Changes - Revenue for the quarter was $216 million, representing a 14% year-over-year growth, exceeding the midpoint of the guided range by $3 million [167] - Calculated current billings grew 12% year-over-year to $197.8 million, with a strong performance in new logos resulting in nearly 30% year-over-year ACV growth from newly acquired customers [164][165] - The net dollar expansion rate decreased to 109% from 111% in the previous quarter, attributed to a higher-than-usual number of customers dropping below the $100,000 threshold [184] Business Line Data and Key Metrics Changes - Tenable One represented 26% of total new enterprise sales, up from 22% last quarter, indicating strong momentum in exposure management solutions [183] - Exposure management solutions, including Tenable One and stand-alone products, accounted for approximately 50% of total new enterprise sales in the quarter [183] - Sales and marketing expenses decreased to $84.5 million from $88.5 million last quarter, while R&D expenses increased to $32.6 million from $27.8 million [22][23] Market Data and Key Metrics Changes - The company added 410 new enterprise platform customers during the quarter, including a healthy number of six-figure lands, reflecting strength in new logo sales [19] - The spending environment is reported to be stronger than the previous year, with favorable deal sizes and strong pipeline generation [51][74] - The Federal sector showed significant traction, with strong demand in defense and critical infrastructure [50][76] Company Strategy and Development Direction - The company is focused on continuing to invest in the vulnerability management (VM) market, believing it translates to opportunities in other areas [4] - Tenable One is positioned as a unified platform to manage risks across various domains, including cloud, identities, and operational technology [160] - The company aims to leverage AI capabilities to enhance security insights and streamline workflows, positioning itself at the forefront of exposure management innovation [181][112] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the outlook for Q2 and the full year, citing a healthy pipeline and strong demand across various sectors [48][51] - The company anticipates greater contributions from cloud security in the second half of the year, particularly following the acquisition of Ermetic [11][134] - Management noted that the competitive dynamics in the VM market remain favorable, with high win rates and successful displacements of incumbent vendors [2][5] Other Important Information - The company finished the quarter with $510.8 million in cash and short-term investments, providing visibility into expected revenue over the next 12 months [25] - Moody's upgraded the company's issuer credit rating to Ba3, and S&P upgraded it to BB- [26] - The company incurred $1.4 million in restructuring costs in Q1, which was better than previously expected [31] Q&A Session Summary Question: What is the competitive environment in vulnerability management? - Management noted that the market dynamics are favorable, with high close rates and win rates, and emphasized their leadership position in the VM market [2][5] Question: Can you provide insights on the contributions from cloud security? - Management indicated that cloud security is expected to contribute more significantly in the second half of the year, particularly due to the integration of Ermetic [11][134] Question: How is the spending environment compared to last year? - The spending environment is reported to be stronger now than last year, with favorable deal sizes and strong activity in the Federal sector [51][74] Question: What is the outlook for the second half of the year? - Management expressed a bullish outlook for the second half, expecting higher growth driven by strong pipeline opportunities and engagement with customers [82][107]