Tenable Holdings, Inc. (NASDAQ:TENB) Q4 2022 Earnings Call Transcript

Operator: Our next question comes from the line of Rudy Kessinger with D.A. Davidson. Please proceed with your question.

Rudy Kessinger: Hey, thanks for taking my questions guys. Certainly, a lot of talk about Tenable One and good traction there. I think it was last quarter, maybe the quarter before you guys started talking about the sales force, really leading with that product as opposed to leading with VM. Just where are we in that evolution? I don’t know if you can speak to maybe the percent of deals or cycles where your reps are leading with Tenable One as opposed to VM. But just how has that changed over the last six months?

Amit Yoran: Yes, I think the sales team has a lot of confidence in the product, seeing the customer traction and the results that customers are experiencing with Tenable One gives them an increasing level of confidence. Today, it remains a teens percentage of new sales. But obviously, in the pipeline, pipeline is more heavily weighted towards Tenable One, and we expect that to continue to accelerate with sales kickoff and more training and more time and more differentiation.

Rudy Kessinger: Got it. And then secondly, you talked about vendor consolidation playing out as a positive for you guys. I guess I’m also curious, there are some other kind of larger, broader cyber platforms out there that have grown in a VM product in the mix over the last couple of years. I’m curious if you’re seeing vendor consolidation maybe hurt you in some cycles with some of those larger platforms out there throwing in the VM product.

Amit Yoran: Yes, there’s been a lot of vendors over the course of years, making a lot of noise about VM going back four, five-plus years, Tanium, CrowdStrike, Microsoft others. And what I would tell you is they make noise. We see them for a quarter or two and then very quickly their sales team understand that their products are inferior and they start gravitating to their core markets and candidly, where their companies are investing much more aggressively logging SIM and elsewhere. So, especially in a product like VMware independent audit is an important function and where we feel like we’ve got a quantitatively and qualitatively differentiated product and experience and understanding the enterprise. We almost never see those larger IT vendors participating and certainly never see them beyond a rule — a first phase of competition.

I guess the only other thing I would add to that is obviously, our footprint is broader than VM. So, if customers are really looking to understand Cyprus more broadly than even other solutions which offer VM capability are not really competitive. And our Cyber Exposure solutions now represent, as Steve said, 50% of our sales.

Rudy Kessinger: Got it. Thanks for squeezing me in.

Operator: And our next question comes from the line of Shebly Seyrafi with FBN Securities. Please proceed with your question.

Shebly Seyrafi: Yes. Thank you very much. So, were there any call-outs on the geo side, EMEA, for example, growth here was decelerating in the last two quarters. You have a tough comp in Q1 in EMEA as well. Just any callouts on the geo side.

Amit Yoran: No, I think on the geo side, what we just said earlier is that all theaters performed pretty much to expectations in both enterprise and commercial segments. So, felt good about the international markets and the balance of our international performance.