Tenable Holdings Inc Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Saket Kalia - Barclays Services Corp - Analyst : Okay. Great. And welcome, Matt. I'll just keep it to one question. Steve and Mark, maybe for you, US Federal is, of course, a really important vertical for Tenable. Can you just talk a little bit about how that performed this quarter? And given the current situation, maybe give us a little historical context of how the business has performed around prior shutdowns as we think about any potential impact going into Q4. Does that makes sense?

Question: Brian Essex - JPMorgan Chase & Co - Analyst : And Matt, congratulations on the new role for me as well. Looking forward to working with you again. And nice consistency out of the gates as well. So I certainly appreciate that. I guess maybe to follow on with Saket's question for you, Matt. I was down to D.C. last week in that basis, and it was clear that things were going to get incrementally uglier this week as agencies run out of money, particularly for central employees where CISA is focused. But would love to hear from your perspective, given that, I guess, deceleration that's baked into the 4Q, like just basically what's implied by your full year guide, the deceleration of revenue in the 4Q. What are you contemplating within guidance and what kind of scenarios might lead for upside to your expectations for the quarter and for the year?

Question: Brian Essex - JPMorgan Chase & Co - Analyst : Got it. Maybe if I just sneak in a quick follow-up for Mark. Just with regard to the impact of the expiration of CISA 2015 and what that might have on CVE reporting. Any impact that you might envision for the core VM portion of your business?

Question: Robbie Owens - Piper Jaffray Inc - Analyst : Great. And Steve, really enjoyed the discussion upfront on fireproofing versus firefighting in terms of where things are going. To that end, if I look at your enterprise adds versus your 100,000 ACV customers, maybe you can parse what's going on there? And are you just -- are you seeing more new customer additions upfront and you're starting to see just velocity increase on that front as some of these trends are changing? And if that's the case, maybe you could add some color around the 100,000 ACV customers?

Question: Meta Marshall - Morgan Stanley & Co Ltd - Analyst : Maybe a couple for me. Just first, in terms of noted commentary on the OT market. Just wanted to know if there's efforts underway kind of either with R&D or go-to-market to kind of better take advantage of some of those opportunities? And then second, just kind of noting the 18% increase in R&D just in terms of kind of the answer to the previous question of trying to simplify kind of environment for customers. Just what are some of

Question: Jonathan Ho - William Blair Capital Partners - Analyst : Congratulations on the strong results. Can you give us a sense of what percentage of your total base is now on Tenable One? And it seems to me like there would be some opportunity to upsell more into the base once they've adopted the platform. So can you also talk about maybe the potential for uplift going forward on the platform?

Question: Joseph Gallo - Jefferies LLC - Analyst : And Matt, congrats on the new role. Looking forward to working together. It was great to hear the exposure management momentum. As we start to get ready for next year, in your combos with customers, where is the prioritization for exposure management in their budgets? And then historically, I think you gave some sense of following your billings in 3Q. Just any commentary on what billings can look like in 2016 or confidence in sustaining the current levels would be helpful.

Question: Roger Boyd - UBS AG - Analyst : You talked about the longer, more strategic deals, and it seems like that's been a consistent trend over the past couple of quarters. And clearly evident in the nice acceleration on ARPU on bookings this quarter. Can you just further quantify what you're seeing there, what you're doing there from a sales perspective? And with these longer contracts, what's the overlap with customers adopting Tenable One Exposure Management?

Question: Adam Borg - Stifel, Nicolaus & Company Inc - Analyst : Awesome. Of course, welcome and congrats to Matt. Maybe just on the macro, we talked a lot about the Fed. It's great to see in line with expectations. Any other color you could share just demand environment overall, be it at the upper end of the market, the mid-market geography vertical? Any other color would be really great. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 29, 2025 / 8:30PM, TENB.OQ - Q3 2025 Tenable Holdings Inc Earnings Call

Question: Jonathan Ruykhaver - Cantor Fitzgerald LP - Analyst : Yes. I'm curious to hear how conversations might be changing with the pending with Google deal, how much of a concern is multi-cloud support. And then just broadly looking at Tenable cloud security, how is it performing? I mean it does look like a market that is increasingly competitive but when you look at your positioning relative to the broader exposure management opportunity, it seems like that could be a differentiating factor. So maybe you could just elaborate on those two questions.

Question: Todd Weller - Stephens Inc - Analyst : In the past, we've talked about kind of the growth equation to drive top line acceleration. Wanted to see if you could just kind of revisit that and give us an update. Continued momentum with Tenable One and exposure management is great, and that's much higher growth and then you have like the traditional VM piece. So how are you thinking about those components? How you're thinking about the VM kind of sustainable growth REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 29, 2025 / 8:30PM, TENB.OQ - Q3 2025 Tenable Holdings Inc Earnings Call and is it really just a math equation and time of the exposure piece continuing to get bigger? Or is there anything that can happen on the VM side that could drive kind of improved growth there?

Question: Junaid Siddiqui - Truist Securities - Analyst : Great. You highlighted now supporting over 300 validated integrations. How are these integrations contributing to deal velocity and deal sizes?

Question: Shrenik Kothari - Robert W. Baird & Co Inc - Analyst : Congrats, and welcome, Matt. Mark, you cited turn at 40% of new business, of course, improving ASPs and deal sizes. And it seems like the platform growth as percent of new business is covering in near that 40% mix. Just what do you think are going to be the biggest unlocks to further accelerate REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 29, 2025 / 8:30PM, TENB.OQ - Q3 2025 Tenable Holdings Inc Earnings Call this platform as a percentage of new business? Are you thinking something along the lines of a pricing package and exploring something like flex? Are you also thinking more sort of field enablement and increased S&M investments? Just curious and then a follow-up for Matt.

Question: Shrenik Kothari - Robert W. Baird & Co Inc - Analyst : Great. Very helpful. And Matt, very quickly from your perspective in terms of what you have seen so far, like how do you plan to now kind of balance all the priorities that just laid out versus incremental operating leverage in terms of your strategy or your priorities? How should we expect 2026?

Question: Gray Powell - BTIG LLC - Analyst : Okay. Great. Thank you very much for working me in. Greatly appreciate it. A lot of good questions have been asked. Maybe I said one of my list that has not. What kind of traction are you seeing with the Apex acquisition and AI exposure? And I'm not sure if you said this, but how should we think about it impacting ASPs with Tenable One or potentially driving just incremental adoption of the platform? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 29, 2025 / 8:30PM, TENB.OQ - Q3 2025 Tenable Holdings Inc Earnings Call