MANAGING AND MEASURING CYBER RISK IN THE DIGITAL ERA
This presentation includesforward-lookingstatements. All statements contained in this presentation other than statements of historical facts, including statements regarding our future results of operations and financial position, our business strategy and plans and our objectives for future operations, areforward-lookingstatements. The words "anticipate," believe," "continue," "estimate," "expect," "intend," "may," "will" and similar expressions areintended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions. These risks and uncertainties are detailed in the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Quarterly Report on Form 10-Q filed and other filings that we make from time to time with the SEC, which are available on the SEC's website at sec.gov. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Such risks and uncertainties may be amplified by the COVID-19 pandemic and its potential impact on our business and the global economy. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in any forward-lookingstatements we make.
You should not rely on forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. Neither we, nor any other person, are under any duty to update any of these forward-looking statements after the date of this presentation to conform these statements to actual results or revised expectations, except as required by law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this presentation. Moreover, except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements contained in this presentation.
This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Neither we nor any other person makes any representation as to the accuracy or completeness of such data or undertakes any obligation to updatesuch data after the date of this presentation. In addition, projections, assumptions and estimates of our future performance and the future performance of the markets in which we operate are necessarily subject to a high degree of uncertainty and risk. By receiving this presentation you acknowledge that you will be solely responsible for your own assessment of the market and our market position and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of our business.
This presentation includes non-GAAP financial measures which have certain limitations and should not be considered in isolation, or as alternatives to or substitutes for, financial measures determined in accordance with GAAP. The non-GAAP measures as defined by us may not be comparable to similar non-GAAP measures presented by other companies. Our presentation of such measures, which may include adjustments to exclude unusual or non- recurring items, should not be construed as an inference that our future results will be unaffected by these or other unusual or non-recurring items. See the GAAP to Non-GAAP Reconciliation section for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.
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We help organizations
confidently answer the question:
"How secure are we?"
We Have Delivered Since IPO
Market Leader with
($ in millions)
50%+of Fortune 500
30%+of Global 2000
#1 VMMarket Share and
GAAP Operating Income
and Free Cash Flow(3)
Q3 YTD 2019
Q3 YTD 2020
% Free Cash
Vulnerability Risk Management, Source: IDC, "Worldwide Device Vulnerability Management Market Shares 2019: Finding the Transitional Elements Between Device Assessment Scanning and Risk-
Based Remediation" - May 2020.
Recurring revenue as a percentage of total revenue as of Q3 2020
Refer to Appendix for the definitions of non-GAAP financial measures and a reconciliation from the GAAP measures to the non-GAAP measures
Unique approach to
Best of Breed
One platform unifying data
strategy in VM
across network, cloud, OT and
Data science driven
High growth, recurring
Attractive margin profile
analytics - prioritization,
with operating leverage
Digital Transformation Increases Complexity & Risk
Increasing Surface of Attack…
…requires Best of Breed, Risk-Based VM
IoT and OT
Enterprises Struggle to Make Sense of Vulnerabilities
Live asset discovery and automated
Remediation actions by order of risk
Translate IT/OT VM data into C-Suite
digestible risk assessment
Network and cloud monitoring of allIT
150 data sources feed the Tenable analytics
engine to prioritize vulnerabilities by
likelihood, severity and difficulty
Data and data science allows for objective
scores, trends and benchmarks
Best of Breed Strategy in Vulnerability Management
#1 in Device VM Market Share(1)
27.6%Market share in Device VM(1)
#1 In Vulnerability Coverage(2)
>20%More CVEs than competitors(2)
Leader In Zero-day Research(3)
149/104Zero-day vulnerabilities discovered in 2019 / YTD 2020
1Source: IDC, "Worldwide Device Vulnerability Management Market Shares 2019: Finding the Transitional Elements Between Device Assessment Scanning and Risk-Based Remediation" - May 2020.
2Reported in A Principled Technologies report: "Comparing vulnerability and security configuration assessment coverage of leading VM vendors" - September, 2019.
Gartner Peer Insights Customers' Choice constitute the subjective opinions of individual end-user reviews, ratings, and data applied against a documented methodology; they neither represent the views of, nor constitute an endorsement by, Gartner or its affiliates. The Gartner Peer Insights Customers' Choice badge is a trademark and service mark of Gartner, Inc., and/or its affiliates, and is used herein with permission. All rights reserved. Gartner Peer Insights Customers' Choice constitute the subjective opinions of individual end-user reviews, ratings, and data applied against a documented methodology; they neither represent the views of, nor constitute an endorsement by, Gartner or its affiliates.
One Platform Unifying Data Across Modern Attack Surface
1Traditional Vulnerability Management Market includes the Policy and Compliance and Device and Application Vulnerability Assessment segments as reported by IDC in their Worldwide Cybersecurity
Analytics, Intelligence, Response, and Orchestration Forecast, 2019-2023: Finding and Mitigating the Adversary .
Large and Diverse Customer Base
of Global 2000
of Fortune 500
Best of Breed Strategy Strengthens Technology Ecosystem
expand use cases
Experienced Management Team
CEO & Chairman
Co-Founder & CTO
Chief People Officer
SVP, Global Operations
SVP, Worldwide Sales
Chief Product Officer
SVP, Corp. Development
Rapid Growth at Scale
$ in millions
$ in millions
Attractive Composition of Revenue/Balanced Model
Revenue by offering
Revenue by geography
Asia Pacific 10%
Landing Higher Value Customers
New logo enterpriseplatform customers(1)
LTM $100K+ ACV accounts(2)
1Chart represents new enterprise platform customer acquisitions excluding upsells. Enterprise platform customer defined as a customer that has licensed Tenable.io or Tenable.sc for an annual amount of
22$5,000 or greater.
2Chart represents the number of customers with $100K and greater of annual contract value (ACV) for the last 12 months.
Multiple Ways to Land and Expand
Annual Contract Value*
Nessus acost-effectiveon-ramp to larger enterprise platform
Nessus Professional upgrades to either T.SC (on prem) or T.IO (cloud) or both (hybrid) can access additional features:
Centralized data & reporting
Access to more sensors (Agents, Passive, WebApp, OT, etc)
More assets and
* Exemplary only; actual comparison of contract value varies by customer. This is not intended as an average or median representation.
Improving Operating Leverage
Improving non-GAAP operating margins(1)
Improving free cash flow margin profile(1)
Q3 YTD 2019
Q3 YTD 2020
1Figures presented here are Non-GAAP financial measures. Refer to Appendix for the definitions of non-GAAP financial measures and reconciliation of GAAP to Non-GAAP financial measures.
Strong Growth in Calculated Current Billings
$ in millions
$ in millions
1Calculated current billings (CCB) figures presented here are Non-GAAP financial measures. Refer to Appendix for the definitions of non-GAAP financial measures and reconciliation of GAAP to Non-GAAP financial measures.
Calculated Current Billings:We define calculated current billings, a non-GAAP financial measure, as total revenue recognized in a period plus the change in current deferred revenue in the corresponding period. We believe that calculated current billings is a key metric to measure our periodic performance. Given that most of our customers pay in advance (including multi-year contracts), but we generally recognize the related revenue ratably over time, we use calculated current billings to measure and monitor our ability to provide our business with the working capital generated by upfront payments from our customers. We believe that calculated current billings, which excludes deferred revenue for periods beyond twelve months in a customer's contractual term, more closely correlates with annual contract value and that the variability in total billings, depending on the timing of large multi-year contracts and the preference for annual billing versus multi-year upfront billing, may distort growth in one period over another.
The following table presents a reconciliation of revenue, the most directly comparable GAAP measure, to calculated current billings for each of the periods presented. All dollars are in thousands.
Calculated Current Billings:
Add: Deferred revenue (current), end of period
Less: Deferred revenue (current), beginning of period(1)(2)
Calculated current billings
In connection with adopting ASC 606, we recorded $19.0 million of current deferred revenue on January 1, 2017 related to perpetual license revenue recognized in prior periods.
Deferred revenue (current), beginning of period for the year ended December 31, 2019 includes $0.4 million related to Indegy's deferred revenue at the acquisition date.
Non-GAAP Reconciliations (continued)
Non-GAAPIncome (Loss) from Operations andNon-GAAPOperating Margin:We define these non-GAAP financial measures as their respective GAAP measures, excluding the effect of stock-based compensation, acquisition-related expenses and amortization of acquired intangible assets. Acquisition-related expenses include transaction expenses and costs related to the transfer of acquired intellectual property.
Non-GAAPGross Profit andNon-GAAPGross Margin:We define non-GAAP gross profit as GAAP gross profit, excluding the effect of stock-based compensation and amortization of acquired intangible assets. Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of revenue.
Non-GAAP Sales and Marketing Expense, Non-GAAP Research and Development Expense and Non-GAAP General and Administrative Expense: We define thesenon-GAAP
measures as their respective GAAP measures, excluding stock-based compensation and acquisition-related expenses.
Free Cash Flow:We define free cash flow, a non-GAAP financial measure, as net cash (used in) provided by operating activities less purchases of property and equipment. We believe free cash flow is an important liquidity measure of the cash (if any) that is available, after purchases of property and equipment, for investment in our business and to make acquisitions. We believe that free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash.
The following tables reconcile the most directly comparable GAAP measures to our non-GAAP measures for each of the periods presented. All dollars are in thousands.
Non-GAAP Income (Loss) from
Loss from operations
Amortization of acquired intangible
Non-GAAP income (loss) from
Non-GAAP operating margin
Non-GAAP Reconciliations (continued)
Non-GAAP Gross Profit
Stock-based compensation (1)
Amortization of acquired intangible assets
Non-GAAP gross profit
Non-GAAP gross margin
Free Cash Flow
Q3 YTD 2019
Q3 YTD 2020
Net cash (used in) provided by operating activities
Purchases of property and equipment
Free cash flow(2)
Free cash flow margin
Cost of revenue portion of totalStock-based compensation
Free cash flow included reductions related to employee stock purchase plan activity of $2.3 million and $3.7 million in the three months ended September 30, 2020 and 2019, respectively, and $2.7 million, and $4.7 million in the nine months ended September 30, 2020 and 2019, respectively. The three and nine months ended September 30, 2020 included $5.6 million and $14.2 million, respectively, in proceeds from lease incentives as well as $6.8 million and $16.6 million, respectively, in capital expenditures for our new headquarters. The three and nine months ended September 30, 2019 included $2.4 million in capital expenditures for our new headquarters. The nine months ended September 30, 2020 also included $0.7 million ofacquisition-related payments for Indegy.
Tenable Holdings Inc. published this content on 27 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2020 22:59:08 UTC