Tenable Holdings, Inc. · NASDAQ:TENB
Tenable — Investor Presentation (September 2018)
36 slides from Tenable's investor presentation, Sep 17, 2018
Slide 1: Tenable Overview September 2018
Tenable Overview September 2018
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes forward-looking statements. 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 o
Slide 3: Empowering every organization to understand and reduce their cybersecurity risk
Empowering every organization to understand and reduce their cybersecurity risk 3
Slide 4: Tenable at a glance
Tenable at a glance(1) >24,000 >50% ~120% $0M Customers of Fortune 500 Dollar-based net expansion Primary institutional capital rate raised prior to IPO (2) Revenue $188 ($ in millions) ~2M Subscription Cumulative, unique Business model $124 downloads $93 160+ 1,000+ Countries Employees 2015 2016 20
Slide 5: Investment highlights
Investment highlights One of the most recognized brands in security Data asset drives network effects Unique approach to secular growth opportunity High growth, recurring model System of record for security 5
Slide 6: Digital transformation increases IT complexity and cybersecurity risk
Digital transformation increases IT complexity and cybersecurity risk Growth of Adoption of applications cloud computing Proliferation of IoT Rise of and OT DevOps 6
Slide 7: Cybersecurity risk is business risk
Cybersecurity risk is business risk Casino Gets Hacked Through Its Internet-Connected Fish Tank Vital Boeing computer network infected with WannaCry virus – is it Thermometer safe to fly? 7
Slide 8: Understanding cyber risk is strategic and foundational
Understanding cyber risk is strategic and foundational Where are we Where should we prioritize Are we reducing How do we compare to exposed? based on risk? exposure over time? our peers? Cyber Exposure Command Center Protection Detection and response 8
Slide 9: Breadth of Tenable visibility
Breadth of Tenable visibility IoT BYOD Containers OT Virtual Machines IT complexity Cloud Old paradigm On-Prem Desktops Laptops Servers Attack surfaces 9
Slide 10: Depth of Tenable analytics
Depth of Tenable analytics 10
Slide 11: Tenable enterprise platform offering
Tenable enterprise platform offering Risk-based analytics, prioritization, benchmarking Tenable ecosystem Tenable ecosystem third-party data third-party systems Web Vulnerability Container Industrial Policy and application Assets management security security compliance Configuration Management scann
Slide 12: Technology ecosystem enhances platform value
Technology ecosystem enhances platform value 12
Slide 13: Why customers choose Tenable
Why customers choose Tenable Agent Workflow integration Active Multi-faceted data sensors Passive Web Applications Public Cloud Connector Workload Image Registry Benchmarking Data science and analytics Breadth of coverage Prioritization 13
Slide 14: Deeply trusted brand amongst large global community
Deeply trusted brand amongst large global community Approximately 2M cumulative, unique downloads of Vulnerability management skills on Free Nessus globally(1) LinkedIn 2.0 1.8 Tripwire 1.6 1.4 1.2 There are ~750K security professionals in the U.S.(1) 1.0 Rapid7 0.8 0.6 0.4 0.2 Qualys - 2004 2005 20
Slide 15: Data asset drives significant network effects
Data asset drives significant network effects Tenable Research (Data science insights) Valuable data asset Customers Nessus community Tenable R&D 15
Slide 16: Tenable can be the system of record for security
Tenable can be the system of record for security HR CRM IT Security 16
Slide 17: Large and underpenetrated TAM
Large and underpenetrated TAM Traditional vulnerability management market(1) Bottoms-up analysis $ in billions 2019 TAM $16Bn New analytics products $6.0 13% CAGR $3.7 Expand Modern IT assets Penetrate traditional IT assets in existing customer base Traditional vulnerability management market $188M
Slide 18: Differentiated go-to-market efficiently addresses all organizations
Differentiated go-to-market efficiently addresses all organizations Word of mouth & Marketing Channel-in community Internet events / advertising / PR opportunities • Nessus on-ramp contributes to land Lead Free / paid Back-to-base Evaluations Cross-selling generation on-ramp products marketing and e
Slide 19: World class customer base
World class customer base 24,000+ >25% >50% Customers of Global 2000 of Fortune 500 Vodafone UK U.S. Department U.S. Social U.S. Department U.S. Department U.S. Department of Veterans Security of Agriculture of Defense of Energy Affairs Administration 19
Slide 20: Customer examples
Customer examples Highly dynamic cloud IoT + cloud Analytics environment Fortune 100 Retailer Single platform for Cyber Exposure across 1 million+ Securing over 100,000 assets including store kiosks First Data replaced an existing solution with Tenable. assets spanning traditional and modern IT asse
Slide 21: Growth strategy
Growth strategy Acquire new enterprise platform customers Expand asset coverage Invest in technology and expand use cases Accelerate international expansion 21
Slide 22: Experienced management team and board
Experienced management team and board Amit Yoran Steve Vintz Jack Huffard Jennifer Johnson CEO & Chairman CFO Co-Founder, COO & Director CMO John Negron Renaud Deraison Co- Dave Cole Steve Riddick Bridgett Paradise CRO Founder & CTO CPO General Counsel Chief People Officer Art Coviello Ping Li Jerry
Slide 23: Financial Overview
Financial Overview
Slide 24: Financial highlights
Financial highlights Rapid, recurring revenue growth at scale Balanced and diversified model Land-and-expand model Capital efficient business 24
Slide 25: Rapidly growing revenue
Rapidly growing revenue Annual revenue(1) Quarterly revenue(1) $ in millions $ in millions $64 $59 $54 $188 42% $49 CAGR $44 $40 $36 $124 $34 $29 $93 $26 2015 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2016 2017 2018 YoY Growth 58% 53% 45% 50% 46% 44% 1. We adopted ASC 606 on January 1, 2017 using the
Slide 26: Composition of revenue
Composition of revenue % Revenue by line item(1)(2) % Recurring(1) 3% 2% 2% 14% 14% 11% 11% 24% 32% 27% 86% 86% 89% 89% 71% 74% 65% 2016 2017 LTM Q2'18 2016 2017 Q1'18 Q2'18 Subscription Perpetual and maintenance Professional services Recurring Non-recurring 1. We adopted ASC 606 on January 1, 2017
Slide 27: Strong growth in calculated current billings
Strong growth in calculated current billings Calculated current billings(1) Annual, $ in millions $236 43% 39% $77 Growth CAGR 47% $65 $158 Growth $56 $115 $44 2015 2016 2017 Q1 2017 Q1 2018 Q2 2017 Q2 2018 1. Figures presented here are Non-GAAP financial measures. Please reference Appendix for a re
Slide 28: Balanced and diversified model
Balanced and diversified model By customer size(1) By geography(2) Enterprise Mid Small Americas EMEA APAC 1. Based on 2017 calculated billings. Size based on employee count; large enterprises include those with >2,500 employees; small enterprises include those with <250 employees. 2. Based on 2017
Slide 29: Landing higher value customers
Landing higher value customers New logo enterprise platform customers(1) LTM $100K+ ACV accounts(2) up 21x 340 307 1,017 265 786 216 181 145 124 100 301 282 74 55 45 16 19 23 2016 2017 Q1'18 Q2'18 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 YOY Growth 29% 64%
Slide 30: Multiple ways to land and expand
Multiple ways to land and expand Annual contract value • Nessus serves as a cost- effective on-ramp to larger enterprise platform sales Nessus upsells New logos • Elastic, asset-based pricing On-ramp: model Platform Nessus • Proven land-and-expand strategy More assets and applications • 86% recurrin
Slide 31: Land and expand model
Land and expand model Enterprise platform $ ARR by cohort(1) ($ in millions) $160 $140 ~120% $120 Dollar-based net expansion rate $100 $80 $60 Incremental $40 10 percentage $20 points in dollar-based net expansion rate if perpetual $0 license upsells and services 2013 2014 2015 2016 2017 are include
Slide 32: Investment highlights
Investment highlights One of the most recognized brands in security Data asset drives network effects Unique approach to secular growth opportunity High growth, recurring model System of record for security 32
Slide 33: Appendix
Appendix
Slide 34: Non-GAAP reconciliations
Non-GAAP reconciliations Calculated Current Billings: We define calculated current billings, a non-GAAP financial measure, as 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
Slide 35: Endnotes
Endnotes Referenced from Page 4: 1. All figures presented are as of March 31, 2018, unless otherwise noted. 2. We adopted ASC 606 on January 1, 2017 using the modified retrospective method. The 2015 and 2016 consolidated statements of operations were not adjusted for the adoption of ASC 606. Referen
Slide 36: Slide 36
Tenable Holdings — Investor Presentation (September 2018) on 6ix