Tenable Holdings Inc Q4 2024 Earnings Call Transcript

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

Question: Saket Kalia - Barclays Bank - Analyst : Okay great. Hey guys, thanks for taking my question here and let me just start by saying -- I know the team will continue to honor and meet legacy of better security and I'm sure he'd be proud of these results today. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 05, 2025 / 9:30PM, TENB.OQ - Q4 2024 Tenable Holdings Inc Earnings Call Maybe on the business, Steve and Mark, there's a good bit of noise out in the VM space right now. Maybe the question is how do you sort of feel Tenable is doing competitively and do you think there's an opportunity to maybe extend your lead in VM and exposure management in 2025?

Question: Saket Kalia - Barclays Bank - Analyst : Very helpful. Thanks guys.

Question: Brian Essex - JPMorgan - Analyst : Thank you for taking the question and good to see a solid set of results here. Steve, maybe for you, could we unpack some of the comments that you made on the federal caution and the quarters related to guidance? I know you guys have a lot of government business, a lot of its state and local, but on the federal side, what is it that you're seeing, real time that's kind of giving you a little bit more caution. Obviously you see news stories, but maybe if you could relate, where you're seeing some softness, where you're seeing stability just to gauge the level of caution that you see and kind of what's driving that caution around the guys.

Question: Brian Essex - JPMorgan - Analyst : Great and any appetite for disclosing maybe the federal exposure kind of disaggregate that from the state and local. I know you usually give a total government number, but just to get a better sense of the exposure there.

Question: Brian Essex - JPMorgan - Analyst : Very helpful. Thank you, Steve.

Question: Hamza Fodderwala - Morgan Stanley. - Analyst : Alright, great. Thank you for taking my question and I'll echo my condolences on the passing of Amit to his family and to the entire Tenable team. Steve or excuse me, Mark. You know, talked about -- Steve, talked about cloud security sales, I think doubling year on year. I'm wondering, we're seeing a lot of consolidation in the security market and in the cloud security market more recently as well. To what extent is that coming from your existing customers or net new customer lands? Thank you.

Question: Hamza Fodderwala - Morgan Stanley. - Analyst : Thank you.

Question: Shaul Eyal - TD Cowen - Analyst : Thank you. Good afternoon. Let me also offer my my condolences. Steve, I had a question about your European, maybe international operations. How did they perform this quarter versus the US operations. And maybe -- I know you've mentioned the competitive landscape, but maybe can you break it for us? What you're seeing on the legacy front versus some of the maybe emerging private competitors front, any color will be extremely helpful. Thank you.

Question: Shaul Eyal - TD Cowen - Analyst : Thank you so much. Very helpful.

Question: Gray Powell - BTIG - Analyst : Okay, great. Thanks for taking my question. And before I ask, I just wanted to offer my condolences on Amit as well. I had a lot of respect for him. But yeah, in terms of the question, just on the billings guidance. Can you give us any color on how you're thinking about linearity for the year versus prior years? And is there any reason why maybe this year would be more back and loaded, particularly with some of the comments you made on US set?

Question: Gray Powell - BTIG - Analyst : Understood. Okay. Thank you very much.

Question: Rudy Kessinger - D. A. Davidson - Analyst : Hey, thanks for taking my questions. I guess just kind of similar to Gray's question CCB, but actually on the revenue. The guide kind of implies like a pretty modest acceleration of revenue growth rate year to year throughout the year. Curious, any color you can provide there as Q1 a tough compare or just what maybe is driving that in the guide, especially considering maybe some more conservative assumptions around Fed, which is more Q3 heavy.

Question: Rudy Kessinger - D. A. Davidson - Analyst : Okay. That's helpful. That's it for me. Thank you.

Question: Roger Boyd - UBS - Analyst : Okay, thanks for taking my questions. I'll add my condolence for Amit. Industry lost just a great person. I wanted to ask about customer ads. The 100,000 plus ACV number looked pretty good. I think the overall enterprise customer ads maybe a little bit weaker. Any color on what you're seeing across the co-horts. I know you mentioned kind of better traction up market. What are you seeing with the kind of mid-market S&B? Thanks.

Question: Roger Boyd - UBS - Analyst : Really helpful color. Thanks guys.

Question: Joe Vandrick - Scotiabank - Analyst : Hi, this is Joe Vandrick on for Patrick Colville. You touched on it a bit in the prepared marks, but I'd love to hear a bit more about Vulcan Cyber. Why Vulcan and I know you touched on data integration and automated remediation. But is there application security posture management a focus as well? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 05, 2025 / 9:30PM, TENB.OQ - Q4 2024 Tenable Holdings Inc Earnings Call

Question: Joe Vandrick - Scotiabank - Analyst : That makes sense. Thank you.

Question: Max Perisco - Stifel - Analyst : Hey, thanks guys. You got Max Perisco on for Adam Borg Just wanted to ask if you could give an update on what kind of traction you're seeing with the channel. And then as you look at into 2025, where is Tenable going to be investing most across SIs, VARs, MSSPs and etcetera and any color around that would be super helpful.

Question: Jonathan Ho - William Blair - Analyst : Hi and let me also echo my condolences as well with Amit. Definitely a large loss here for the entire community and for his family. Just wanted to see if you could maybe give us a sense of where we are in terms of executive search and perhaps, some thoughts on what you're looking for. This is definitely a tough shoes to fill. And so, any color would definitely be appreciated. Thank you.

Question: Jonathan Ho - William Blair - Analyst : Thank you.

Question: Mike Cikos - Needham & Company. - Analyst : Hey, thanks for taking the questions guys and I apologize if there's any background noise on my side. I think the first question if I could, I just wanted to check and I know we've centered some of the commentary on this incremental caution is being introduced with respect to US Fed versus the CCB guide being relatively maintained versus where we were a quarter ago despite that Q4 upside. So, is it fair to assume that we're not for this incremental portion around US Fed. You guys would be lifting the CCB guide for this coming year by that 4Q beat or is there any way to kind of quantify that incremental portion that's being introduced here today?

Question: Mike Cikos - Needham & Company. - Analyst : Terrific and then for the follow up, I know that we've spoken about this additional capacity that's coming online as well. Is it fair to think that again, you guys are talking about the strength in Q4 with these large six and seven figure deals. Is that capacity really to help you land with these larger deals or can you help us again provide some additional context for where that capacity is expected to go.

Question: Mike Cikos - Needham & Company. - Analyst : Very good. Thank you very much, guys. Good luck. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 05, 2025 / 9:30PM, TENB.OQ - Q4 2024 Tenable Holdings Inc Earnings Call

Question: Shrenik Kothari - Robert W. Baird & Co. Incorporated - Analyst : Thanks for taking my question. Again, we echo condolences for Amit as well as his family and lots of support for the entire team of Tenable. Just on the federal note, in the public sector of course, there are notable events even as some other segments that you cited has seen or undergoing administration related uncertainty. Just curious, looking ahead as you are favoring your approach to not only address the unique procurement cycles and compliance requirements of public sector, which you anyways have worked on for years now. But it's still early days, but I understand you're trying to appeal to the new kind of tool or cost conscious and mind and framework which are really moving to. I know you guys have just.