Tenable Holdings, Inc. · NASDAQ:TENB
Tenable — Investor Day (December 2021)
72 slides from Tenable's investor day presentation, Dec 15, 2021
Slide 1: Tenable Investor Day December 15, 2021
Tenable Investor Day December 15, 2021
Slide 2: Topics and Speakers
Topics and Speakers Business Update by Amit Yoran, Chief Executive Officer Product Review by Nico Popp, Chief Product Officer Go-To-Market overview by Mark Thurmond, Chief Operating Officer and Dave Feringa, Senior Vice President Worldwide Sales Financial Overview and Outlook by Steve Vintz, Chief F
Slide 3: 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 4: December 2021 Business and Strategy Update
December 2021 Business and Strategy Update
Slide 5: Amit Yoran, Chairman and Chief Executive Officer
Amit Yoran Chairman and Chief Executive Officer 5
Slide 6: Key Milestones Since IPO
Key Milestones Since IPO 6 Grew CCB & Revenue at over 25% CAGR* Achieved FCF+ earlier than forecasted at IPO Growth and Profitability Recognized leader In Vulnerability Management Increased coverage in Modern Infrastructure Developed Unified Exposure Platform Extended Leadership Customer growth 35K+
Slide 7: Tenable is an Industry and Market Share Leader in Vulnerability Management
Key Milestones since IPO ● #1 in market share¹ and over 20 years experience with best-of-breed strategy ● Largest customer base at 35,000+ customers in VM including 2.5M+ cumulative unique Nessus downloads ● 20-plus percent greater coverage of CVEs than our competitors² and test our products to six-
Slide 8: Tenable is an Industry and Market Share Leader in Vulnerability Management Cont'd
Tenable is an Industry and Market Share Leader in Vulnerability Management Cont’d ✔ Gartner Peer Insights Choice for Vulnerability Assessment 2020³ for 3yrs in a row ✔ Recognized as a leader by Frost & Sullivan in the firm’s Frost Radar™: Global Vulnerability Management Market, 2021 report⁴ ✔ Ranked
Slide 9: Log4jShell Response
Log4jShell Response ● Released checks within 24hrs ● Checks work across product lines ● 1-3 vulnerable systems per second ● Already generating checks for vulnerable applications ● Primary customer response tool 9
Slide 10: Use of Tech is Expanding
Use of Tech is Expanding Containers OT Cloud Virtual Machines Identity Services BYOD / WFH DESKTOPS LAPTOPS SERVERS Use of Tech is Exploding in Modern Infrastructure Web/API 10
Slide 11: Recent Breaches Highlight the Complexity of Modern Infrastructure
Recent Breaches Highlight the Complexity of Modern Infrastructure World’s Biggest Meat Producer, JBS, Hacked In Organized Attack Microsoft says a group of cyber attackers tied to China hit its Exchange email servers On March 2, Microsoft said there were vulnerabilities in its Exchange Server mail an
Slide 12: Extending Expertise to Operational Technology
● Unified risk-based product for OT & IT converged environments ● Comprehensive active/passive capability & deep situational awareness ● Tenable named a leader in the Forrester Wave for ICS Security Solutions⁶ Extending Expertise to Operational Technology 12 Sources: Please see endnotes listed on sl
Slide 13: Extending Expertise into Active Directory
● Purpose built AD security product created to disrupt one of the most common attack paths ● Identity/access as a vulnerability has been overlooked until now ● Expertise in securing AD environments coupled with a deep understanding of IT ● Gartner named Tenable as an Active Directory Defense vendor⁷
Slide 14: Expanding Cloud Capabilities Tenable.CS
Key Milestones since IPOExpanding Cloud Capabil ties Tenable.CS 14 Sources: Please see endnotes listed on slide 18 ● Bringing security of and in the cloud for full visibility ● Assessing security posture of the cloud before it is configured ● System of action instead of system of record ● Gartner na
Slide 15: Tenable Strategy: From VM to the New Exposure Platform
Tenable Strategy: From VM to the New Exposure Platform Tenable.ep Unified Cyber Exposure Platform Other data inputs Vulnerability Management (T.IO/T.SC) Active Directory/ Identity (T.AD) Infrastructure as Code (T.CS) KSPM & CSPM Exposure (T.CS) OT Security (T.OT) Web/API Security (T.WAS) AppSec (SAS
Slide 16: Tenable Total Addressable Market
Vulnerability Management $5B ICS/OT $2B Cloud/ Container $10B Application $3B Identity $5B Cyber Exposure $25B Tenable Total Addressable Market Sources: Represents 2025 forecasts based on a blended view of recent forecasts from IDC, Gartner and Tenable assumptions.16
Slide 17: Unified Exposure Platform
Unified Exposure Platform Active Directory / Identities IT Operational Technology Cloud / Container Analytics Web Application UNIFIED EXPOSURE PLATFORM 17
Slide 18: Endnotes
Endnotes Slides 7&8: 1. “IDC, Worldwide Device Vulnerability Management Market Shares, 2019: Finding the Transitional Elements Between Device Assessment Scanning and Risk-Based Remediation (doc # US46284720, May 2020),” 2. Principled Technologies Report: Comparing vulnerability and security configur
Slide 19: December 2021 Product Review
December 2021 Product Review
Slide 20: Nico Popp, Chief Product Officer
Key Milestones since IPO 20 Nico Popp Chief Product Officer
Slide 21: Product Update: Supporting Our Long-Term Growth Strategy
Product Update: Supporting Our Long-Term Growth Strategy 21 Three Synergetic Opportunities Ever Extending Attack Surface “Extending Tenable VM Everywhere” “Shifting Cloud Security to the Left” “Transforming Into a Cyber Data & Analytics Platform” Cloud Native Digital Transformation Vendor Consolidat
Slide 22: Ever Expanding Digital Attack Surface
Ever Expanding Digital Attack Surface “VM Everywhere” (Access, Configuration & Software Vulnerabilities across EVERYTHING)
Slide 23: CISO Challenge: The Digital Attack Surface Keeps Expanding
“How Secure Are we?” Still Powerful. More Difficult. CISO Challenge: The Digital Attack Surface Keeps Expanding 23 More Complexity: More attacks, more point solutions, more vendors, more integrations... Infrastructure as Code “Is my cloud infrastructure secure?” Public Cloud Security “Are my contain
Slide 24: Growth Flywheel: VM Across the Expanded Attack Surface
Risk-Based Vulnerability Mgmt. 24 Attack Surface Access Vulnerabilities Digital ID Infrastructure Configuration Vulnerabilities Public Cloud Software Vulnerabilities Growth Flywheel: Surface expansion drives asset expansion Permission to Move Across the Attack Surface? Same Core Competency: “A Vuln
Slide 25: VM Everywhere: Why Do We Win?
VM Everywhere Attack Surface Access Vulnerabilities Digital ID Infrastructure Configuration Vulnerabilities Public Cloud Software Vulnerabilities OT Infrastructure Best of Breed Approach (10M+ agents, network, FA, APIs, IaC scanners…) Trusted Brand (35,000+ customers, more than half of F500, 30%+ of
Slide 26: VM Everywhere: OT & AD
• AD infrastructure at the heart of modern attacks (ransomware) • Top notch tech & research • Power of integrations (attack paths to marry traditional VM and AD) 26 “VM Everywhere”: OT & AD Individual Momentum & Strength • Renewed focus on critical infrastructure cybersecurity • Product leadership •
Slide 27: Left and Right: VM Everywhere Has a Long Growth Runway
VM Everywhere Attack Surface Access Vulnerabilities Digital ID Infrastructure Configuration Vulnerabilities Public Cloud Software Vulnerabilities OT Infrastructure 27 Left and Right: “VM Everywhere” Has a Long Growth Runway • Open source & 3rd party software • API security • Code security Left (Deve
Slide 28: From Code to Cloud: The Shift-Left Cloud Security Opportunity
From Code to Cloud The Shift-Left Cloud Security Opportunity
Slide 29: Problem: Digital Transformation & the Rise of Cloud Native Applications
Problem: Digital Transformation & the Rise of Cloud Native Applications ● Security flaws can no longer be found late in prod ● Runtime SecOps is powerless as their changes get overridden by dev-driven updates ● Security lacks app context to make decisions The next generation of cloud applications is
Slide 30: Opportunity: Cloud Native Security Solution
So, we seized this moment of disruption To create a modern Cloud Native Security offering ● Expected Early 22’ Launch ● Accurics IaC security and runtime CSPM ● Tenable Container Security and Frictionless Assessment + IaC Security & ConSec Build-Time: Code Repos & CI/CD Integration KSPM, ConSec & Dr
Slide 31: Creating GTM Leverage: Integration
31 • All assets & findings, all clouds, within one unified workspace & remediation workflow • Cross-Sell: the tool Tenable customers already have, already know, and already love • One modern “VM” program for the hybrid enterprise Creating GTM Leverage: Integration, Integration, Integration... Tenabl
Slide 32: There is one more thing...
There is one more thing...
Slide 33: Beyond Frictionless Assessment
33 • No agent to deploy. No agent to activate. No performance overhead • Highly scalable. Optimized beyond “snapshot scanning” • Launch is expected to follow Tenable.cs in H1 2022 Beyond Frictionless Assessment Creating Technology Leverage: The Latest Innovation from Tenable AGENTS
Slide 34: The Next Horizon: Tenable as a Unified Exposure Platform
The Next Horizon Tenable as a Unified Exposure Platform
Slide 35: Tenable Exposure Platform Today: Successful Growth Engine
● Exposure risk across entire attack surface is a compelling product value-proposition ● Product bundle has a very attractive ROI ● CISOs are looking to consolidate around a few trusted vendors Tenable Exposure Platform Today: Successful Growth Engine T.IO T.OT AD WAS LUMIN CloudSec IT 35
Slide 36: The New, Unified Exposure Platform
The New, Unified Exposure Platform: Creating a “Better Together” Tenable.EP: Cyber Exposure Data & Analytics Platform CISO Risk Analytics: Exposure Card, SLAs, Trends & Benchmarks (assessment & remediation) Practitioner Risk Analytics: Risk-Based Prioritization & Attack Pathway Assessment (Expanded
Slide 37: New Analytics: Attack Pathways, Context & Breach Prediction
Joe @ WFH.com Bonus Points: Privileged Access to Another Domain (through unprotected VPN vulnerability and AD domain Trust relationship) AD: Trust Relationship Across Domains Critical Industrial Infrastructure Three data sets - two catastrophic breach pathways detected! +OT Data Set: Shows pathways
Slide 38: From VM Everywhere to Unified Platform
From “VM” Everywhere to Unified Platform New security insights – Stronger together – From proactive to predictive New EP with AD, CS, OT, AD-based attack pathways Mid 22’ Enhanced analytics across entire portfolio VM, including cloud pathways Early 22’ Late 22’ Targeted external data enrichment Note
Slide 39: Conclusion: Three Opportunities. One Transformation
Conclusion: Three Opportunities. One Transformation UNIFIED EXPOSURE PLATFORM T.IO T.OT AD WAS LUMIN CloudSec IT ● “VM Everywhere”: Ever expanding attack surface continues to drive growth ● ”Shift-Left CNAPP”: Rise of cloud native apps opens door to tenable shift-left cloud security ● "Tenable as a
Slide 40: December 2021 Go To Market Update
December 2021 Go To Market Update
Slide 41: Mark Thurmond, Chief Operating Officer
Key Milestones since IPO 41 Mark Thurmond Chief Operating Officer
Slide 42: Go-to-Market Strategy
Go-to-Market Strategy Platforms Unify Buying Decisions Nessus Upgrade World-Class Customer Retention New Logo Acquisition Expansion of Existing Customers 42
Slide 43: Why We Win
Why We Win ▪ Technology, Technology, Technology ▪ Large and loyal install base and strong Nessus brand ▪ Highly trained (Core & Specialized), metric-driven global sales force ▪ Recognized as a leader in VM and OT ▪ 100% commitment to the channel with 1,900+ partners ▪ Significant presence in Public
Slide 44: Focus Areas & Growth Drivers
FOCUS AREAS & GROWTH DRIVERS Add Sales Capacity (Core & Specialized) and Generate Higher Sales Productivity Leverage Large Existing Customer Base to Drive Incremental Use Cases and Expansion Maintain High Customer Renewal Rates Leverage Partner Ecosystem to Expand our Sales, Services and Geo Coverag
Slide 45: Global Presence and Massive Ecosystem
Global Presence and Massive Ecosystem COLOMBI A SLOVAKIA ● 35,000+ Customers ● Presence in 35 Countries ● Business in over 160 Countries ● 1,900+ Partner Organizations ● 300+ MSSPs added in FY21 ○ Fast-growing route to market 45
Slide 46: Global Customer Segmentation
Global Customer Segmentation Enterprise Commercial Velocity/E-Commerce Marketing and Sales Development > 3,500 employees (Field Sales to Large Customers) 500-3,500 employees (Inside Sales to Mid-Market Customers) < 500 employees (Unaided to Small Customers) CSM / PS / Cha nn el 46
Slide 47: Massive Partner Ecosystem
MSSP Partnerships ➔ 8 of top 10 MSSPs¹ ➔ 7 of top 10 SI’s² ➔ Rapid Growth Area ➔ New Route to Market Driving Geo and Commercial Growth Technology Ecosystem ➔ Splunk, ServiceNow, IBM, GCP, etc. ➔ AWS Advanced Technology Partner - Triple digit transaction growth ➔ Hundreds of Integrations ➔ Influenced
Slide 48: Dave Feringa, Senior Vice President Worldwide Sales
Key Milestones since IPO 48 Dave Feringa Senior Vice President Worldwide Sales
Slide 49: VM Executives Buyer Evolution
VM Executives Buyer Evolution CISO VM EXECUTIVES Operational Technology Active DirectoryCloud Security 49
Slide 50: Customer Success: Canadian Manufacturing Conglomerate
Customer Success: Canadian Manufacturing Conglomerate What Solutions Did They Buy? ➔ Expanded their Tenable.SC environment ➔ Tenable.OT for key industrial locations ➔ Tenable.AD to reduce risk Why Tenable? ➔ Only vendor to provide unified visibility of OT and IT environment ➔ Tenable.AD helps preven
Slide 51: Customer Success: Financial Institution in the US
Customer Success: Financial Institution in the US Background: ➔ Rapidly Growing Bank Using Multiple Vendors for Risk Based VM Business Objectives: ➔ Reduce Risk by consolidating multiple RBVM requirements with one vendor who could scale ➔ Improve operational efficiency as they grow ➔ Tight integrati
Slide 52: Customer Success: Large US Federal Agency
Background: ➔ Federal Agency using multiple vendors for VM Business Objectives: ➔ Single vendor to increase visibility into advanced threats ➔ Flexibility for On-Prem solution with a FedRamped cloud offering ➔ Critical integration with Splunk, CyberArk and ServiceNow ➔ Global Support Who is the Buye
Slide 53: Why we're excited
Why we’re excited Product Innovation Deepening Strategic Partnership Expansion Of Salesforce / Global Reach 53
Slide 54: December 2021 Financial Overview & Outlook
December 2021 Financial Overview & Outlook
Slide 55: Stephen Vintz, Chief Financial Officer
30% Key Milestones since IPO 55 Stephen Vintz Chief Financial Officer
Slide 56: Past, Present and Future
30% Past, Present and Future Well positioned for sustained 20%+ long-term growth and business model leverage Evolving the portfolio to address high-growth opportunities in Exposure Solutions Path to $1+ billion in revenues resulting in Rule of 50+ 56 In 13 quarters as a public company, have establis
Slide 57: Top Line Metrics That Inform Our Progress
30% Top Line Metrics That Inform Our Progress Dollar-based Net Expansion Rate Why?: Leverage Customer Base New Enterprise & Six-Figure Customers Why?: Enterprise scale Calculated Current Billings Why?: Leading Indicator 57
Slide 58: Performance Since IPO
30% Performance Since IPO Note: 2021E based on mid-point of Guidance (1) Source: IDC, “Worldwide SIEM, Vulnerability Management, Policy and Compliance, and AIRO-Enabling Technologies Market Share, 2020: Tested, Adapted, and proven During COVID-19” - June 2021 (2) Non-GAAP Income from operations (3)
Slide 59: Growth in Customer Base and Deal Size Since IPO
30% Growth in Customer Base and Deal Size Since IPO Note: Six-Figure customers are those with an LTM ARR > $100K 25K 307 995 Active customers includes Nessus and Enterprise Platform customers Added ~ 360 new Enterprise Platform customers on average per quarter from Q1’18 to Q3’21 1.5X 35K+ Active Cu
Slide 60: Evolving Portfolio to Address Broadening Attack Surface
30% Operational Technology Active Directory Cloud Security Exposure Solutions Tenable.ep Tomorrow Evolving Portfolio to Address Broadening Attack Surface Traditional VM Nessus® Tenable.sc™ Tenable.io® Web Application Security Container Security Lumin Frictionless Assessment Tenable.ep Today 60 Ubiqu
Slide 61: Expanding Product Portfolio Driving Diversification & Growth
30% Expanding Product Portfolio Driving Diversification & Growth Source: Calculated Current Billings, new and renewal Note: (1) 5% reflects Nessus Cloud, the predecessor to Tenable.io Exposure Solutions ● Exposure Platform ○ Tenable.io ○ Web Application Security ○ Container Security ○ Frictionless A
Slide 62: M&A Strategy Accelerates Product Roadmap and Expands TAM
30% 62 M&A Strategy Accelerates Product Roadmap and Expands TAM Purchase Price $78M $98M $160M Date Acquired Dec 2019 April 2021 October 2021 >$10M >$10M NM 2021E CCBProduct Description Operational Technology Active Directory Cloud Note: 2021E based on mid-point of Guidance
Slide 63: Growth Strategy
30% Growth Strategy 63 Expand relationships with existing customers Invest in sales capacity including internationally Lead with and broaden Exposure Platform Mergers & Acquisitions
Slide 64: Path to $1 Billion in Revenue
30% Path to $1 Billion in Revenue $1.1B+ 20%+ CAGR Note: 2021E mid-point of revenue guidance Dollar-based net expansion rate based on LTM Expansion Sales New Sales $188m $267m $355m $440m $536m 64 Growth Algorithm: 1. 95% of revenue is recurring 2. Expansion sales from more asset coverage and broade
Slide 65: Demonstrating Operating Leverage
30% Demonstrating Operating Leverage Non-GAAP Measures 2019 2020 2021E Long-term target model @ IPO Updated long-term target model Gross Margin 84% 84% 82% 77-80% 77-80% S&M % of Revenue 60% 46% 44% 35-40% 30-35% R&D % of Revenue 22% 20% 18% 12-15% 12-15% G&A % of Revenue 14% 12% 11% 6-8% 5-7% Opera
Slide 66: In Summary
30% 20%+ growth on path to $1B Exposure solutions creates expansionary TAM Leveraging sizable customer base and global distribution capability In Summary 66 Targeting Rule Of 50%+
Slide 67: Appendix
67 Appendix ©tenable
Slide 68: Non-GAAP Reconciliations
30% Non-GAAP Reconciliations 68
Slide 69: Non-GAAP Reconciliations (continued)
30% Non-GAAP Reconciliations (continued) 69
Slide 70: Non-GAAP Reconciliations (continued)
30% Non-GAAP Reconciliations (continued) 70
Slide 71: Non-GAAP Reconciliations (continued)
30% Non-GAAP Reconciliations (continued) 71
Slide 72: Non-GAAP Reconciliations (continued)
30% Non-GAAP Reconciliations (continued) 72