Tenable Holdings, Inc. · NASDAQ:TENB
Tenable — Investor Presentation (February 2019)
33 slides from Tenable's investor presentation, Feb 26, 2019
Slide 1: Cyber Exposure: Managing and Measuring Cyber Risk in the Digital Era
CYBER EXPOSURE MANAGING AND MEASURING CYBER RISK IN THE DIGITAL ERA FEBRUARY 2019
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
Slide 4: At-A-Glance
At-A-Glance >27,000 >50% >25% $0M Primary institutional capital Customers of Fortune 500 of Global 2000 raised prior to IPO Revenue(2) $267 ~2M Subscription ($ in millions) Cumulative, unique Business model downloads $188 $124 $93 160+ 1,200+ Countries Employees 2015 2016 2017 2018 YoY Growth 33% 51
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 Rise of IoT and OT DevOps 6
Slide 7: Cybersecurity Risk is Business Risk
Cybersecurity Risk is Business Risk Casino Gets Hacked Through Its Vital Boeing computer network infected with Internet-Connected Fish Tank WannaCry virus – is it safe to fly? Thermometer 7
Slide 8: Evolving Vulnerability Management to Cyber Exposure
Evolving Vulnerability Management to Cyber Exposure Cyber Exposure Prioritization Scoring Depth of Analytics Trending Benchmarking IT Cloud Vulnerability IoT OT Management Breadth of Visibility 8
Slide 9: Depth of Analytics - Predictive Prioritization
Depth of Analytics - Predictive Prioritization Threat-based vulnerability prioritization • Predicts likelihood of successful exploit in 28 days • Vulnerability Priority Rating (VPR) derived from 150 data sources • Dynamic, changes with threat landscape True Competitive Differentiation • Focus on the
Slide 10: The Journey to Cyber Exposure
Asset-Centric The Journey to Cyber Exposure Business Context Benchmarking Strategic Decision Support Cyber Exposure Predictive Prioritization IT-Centric Technical Context Day to Day Management Are we reducing our risk over time? Where should we Prioritize based on How do we compare Where are we expo
Slide 11: Understanding Cyber Risk is Strategic and Foundational
Understanding Cyber Risk is Strategic and Foundational Cyber Exposure Protection Detection and response 11
Slide 12: Technology Ecosystem Enhances Platform Value
Technology Ecosystem Enhances Platform Value 50 Integrations 39 Technology Partners 12
Slide 13: Deeply Trusted Brand Amongst Large Global Community
Deeply Trusted Brand Amongst Large Global Community Over 2M cumulative, unique Vulnerability management downloads of Free Nessus globally(1) skills on LinkedIn 2,000,000 Tripwire There are ~750K security professionals in the U.S.(1) 1,500,000 1,000,000 Rapid7 500,000 - Qualys 13 1. Please see the En
Slide 14: Data Asset Drives Significant Network Effects
Data Asset Drives Significant Network Effects Tenable Research (Data science insights) Valuable Nessus Customers Data community Asset Tenable R&D 14
Slide 15: Tenable Can Be the System of Record for Security
Tenable Can Be the System of Record for Security HR CRM IT SECURITY 15
Slide 16: Large and Underpenetrated TAM
Large and Underpenetrated TAM Traditional vulnerability Bottoms-up analysis (1) management market 2019 TAM $16Bn $ in billions New analytics products 13% $6.0 CAGR Modern IT assets $3.7 Expand Penetrate traditional IT assets in existing customer base Traditional vulnerability management market $267M
Slide 17: 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 and expand model • Broad channel engagement, Free / Paid Back-to-Base Lead Evaluations Cross-sellin
Slide 18: World Class Customer Base
World Class Customer Base 27,000+ >25% >50% Customers of Global 2000 of Fortune 500 USDA DOD DOE VA SSA 18
Slide 19: Customer Examples
Customer Examples Highly Dynamic Cloud IoT + Cloud IT/OT Environment Fortune 100 Retailer Super Major O&G JV Single platform for Cyber Exposure across 2 million+ Securing over 100,000 assets including store kiosks IT/OT bundle with SC and ICS securing the entire assets spanning traditional and moder
Slide 20: Growth Strategy
Growth Strategy Acquire new enterprise platform customers Expand asset coverage Invest in technology and expand use cases Accelerate international expansion 20
Slide 21: 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 Ofer Ben-David Steve Riddick Bridgett Paradise CRO Co-Founder & CTO CPO General Counsel Chief People Officer Art Coviello Ping Li J
Slide 22: Financial Overview
Financial Overview FEBRUARY 2019
Slide 23: Financial Highlights
Financial Highlights Rapid, recurring revenue growth at scale Balance and diversified model Land-and-expand model Capital efficient business 23
Slide 24: Rapidly Growing Revenue
Rapidly Growing Revenue $75 (1) (1) Annual Revenue Quarterly revenue $69 $ in millions $ in millions $64 $267 $59 $54 42% $49 CAGR $44 $188 $40 $36 $34 $29 $124 $26 $93 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2016 2017 2018 YoY Growth 58% 53% 45% 50% 46% 44% 42% 39% 24 1. We adopted
Slide 25: Composition of Revenue
Composition of Revenue % Revenue by line item(1)(2) % Recurring(1) 3% 2% 3% 20% 32% 27% 86% 89% 77% 71% 65% 2016 & 2017 2018 2016 2017 2018 Subscription Perpetual and maintenance Professional services 1. We adopted ASC 606 on January 1, 2017 using the modified retrospective method. The 2015 and 2016
Slide 26: Strong Growth in Calculated Current Billings
Strong Growth in Calculated Current Billings Calculated current billings(1) $350 Annual, $ in millions 6 36% $326 Growth $300 $97 5 35% 42% $87 CAGR Growth $250 $236 4 $71 $200 $64 $158 3 $150 $115 2 $100 $50 1 $0 0 2015 2016 2017 2018 Q3 2017 Q3 2018 Q4 2017 Q4 2018 26 1. Figures presented here are
Slide 27: Landing Higher Value Customers
Landing Higher Value Customers 453 New logo enterprise LTM $100K+ ACV accounts(2) up 28x platform customers(1) 387 340 1,178 307 1,017 265 786 216 181 145 124 100 74 45 55 33 16 19 2016 2017 2018 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 Q3'18 Q4'18 1. Chart
Slide 28: 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 • Elastic, asset-based pricing model Nessus upsells New logos On-ramp: • Proven land-and-expand Platform strategy Nessus • 89% recurring revenue(1) More assets and
Slide 29: Income Statement and Cash Flow Highlights
Income Statement and Cash Flow Highlights Three Months Ended December 31, Year Ended December 31, (in thousands) 2018 % of rev 2017 % of rev 2018 % of rev 2017 % of rev Revenue $75,221 $54,117 $267,360 $187,727 ~85% Cost of revenue 12,399 8,378 43,167 25,588 Gross profit 62,822 84% 45,739 85% 224,19
Slide 30: 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 30
Slide 31: Appendix
Otenable Appendix
Slide 32: 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 33: Endnotes
Endnotes REFERENCED FROM PAGE 4: 1. All figures presented are as of December 31, 2018, unless otherwise noted. 2. We believe our ability to expand sales with customers is most effectively measured by our dollar-based net expansion rate. We utilize dollar-based net expansion rate to measure the long-
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