Q4 2024 Tenable Holdings Inc Earnings Call Transcript
Key Points
- Tenable Holdings Inc (TENB) exceeded expectations on all guided metrics for the fourth quarter of 2024, with calculated current billings (CCB) growth of 11%, surpassing the midpoint of guidance by $7.5 million.
- The company achieved an operating margin of 25%, significantly better than expected, and generated $86 million in unlevered free cash flow.
- Tenable One reached a record 40% of new business sales, highlighting strong demand for the unified exposure platform.
- Cloud security sales more than doubled, with significant wins across both public and private sectors, driven by Tenable's ease of use and integrated platform approach.
- The pending acquisition of Vulcan Cyber is expected to enhance data aggregation capabilities and accelerate automated remediation capabilities, positioning Tenable to advance AI-driven exposure management.
- Tenable Holdings Inc (TENB) expressed caution regarding US federal business due to the transition of a new administration, which could impact the timing of transactions.
- The company is incrementally more cautious about its outlook for US federal contributions, expecting lower contributions in the first half of 2025.
- Despite strong results, the company is facing a competitive landscape in the vulnerability management (VM) space, with mid-single-digit growth expectations for VM going forward.
- The acquisition of Vulcan Cyber is expected to add $11 million to $13 million in operating expenses and reduce unlevered free cash flow by $20 million, including transaction costs.
- The company is undergoing a search for a new CEO following the passing of Amit Yoran, which could introduce uncertainty in leadership continuity.
Greetings and welcome to the Tenable fourth quarter 2024 earnings conference call. (Operator Instructions). As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Erin Karney. Thank you. You may begin.
Thank you, operator, and thank you all for joining us on today's conference call to discuss Tenable's fourth quarter 2024 financial results. With me on the call today are Steve Vintz, our co-Chief Executive Officer and Chief Financial Officer, and Mark Thurmond, our co-Chief Executive Officer and Chief Operating Officer. Prior to this call, we issued a press release announcing our financial results for the quarter. You can find the press release on our IR website at tenable.com.
We will make forward-looking statements during the course of this call, including statements relating to our guidance and expectations for the first quarter and full year 2025, growth and drivers in our business, changes in the threat landscape in the security industry
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