Tenable Holdings, Inc.

Greetings and welcome to Tenable's quarter two of 2022 Earnings Conference call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require assistance during the conference, please press star and zero on your telephone keypad. As a reminder, this conference is being recorded. I will now turn the conference over to your host, Erin Carney, Senior Director, Investor Relations. Please go ahead.

Thank you, Operator, and thank you all for joining us on today's conference call to discuss Tenable's second quarter 2022 financial results. With me on the call today are Amit Yoran, our Chief Executive Officer, and Steve Vince, our Chief Financial Officer. Prior to this call, we issued a press release announcing our financial results for the quarter. You can find the press release on the IR website at tenable.com. Before we begin, let me remind you that we will make forward-looking statements during the course of this call, including statements relating to our guidance and expectations for the third quarter and full year 2022, growth in drivers in our business, changes in the threat landscape in the security industry and our competitive position in the market, growth in our customer demand for and adoption of our solutions, the potential benefits and financial impact of our acquisitions, including our recent acquisitions of Symptom and Bit Discovery, planned innovation and new products and services, our expectations regarding long-term profitability, and our ability to attract and retain employees and its impact on our business. These forward-looking statements involve risks and uncertainties, some of which are beyond our control. which could cause actual results to differ materially from those anticipated by these statements. You should not rely upon forward-looking statements as a prediction of future events. Forward-looking statements represent our management's beliefs and assumptions only as of today and should not be considered representative of our views as of any subsequent date. We disclaim any obligation to update any forward-looking statements or outlook. For further discussion of the material risks and other important factors that could affect our actual results, please refer to those contained in our most recent annual report on Form 10-K and subsequent reports that we file with the SEC, which are available on the SEC website at SEC.gov. In addition, during today's call, we will discuss non-GAAP financial measures. These non-GAAP financial measures are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their closest GAAP equivalent. Our earnings release that we issued today includes GAAP to non-GAAP reconciliations for these measures and is also available on the Investor Relations section of our website. I'll now turn the call over to Amit.

Thank you, Aaron. Today I'll discuss our strong financial performance in Q2, strong demand, and the continued progress of our cyber exposure management platform. With that, let me first touch on our Q2 results. We delivered strong CCB growth for the quarter at 27%, which we achieved despite the macro environment. We believe cybersecurity, and specifically cyber exposure management, remains a top strategic focus for organizations and will continue to be a spending priority. Against this backdrop, we are also very pleased to deliver compelling top and bottom line results of EPS and unlevered free cash flow were both notably above expectations for the quarter. Our business navigated a number of ebbs and flows during the quarter that we believe are a direct result of the complicated environment our customers are operating in. We saw a few dynamics play out during the quarter. North America delivered above expectations led by tenable EP platform sales. Conversely, international business in most regions did not grow as fast as we expected going into the quarter, which Steve will cover in more detail. As far as the business as a whole, deals are going through more scrutiny than they typically do. Overall demand remains strong, even with increased inspection on a customer-by-customer basis. Coming out of the quarter, there were a number of things that substantiated our conviction around our business, even in the short term. Security remains a key budget priority and a defensible spend for our customers. Customers continue to face an expanding attack surface and need to properly identify their exposure and their understanding of risk. EP is an incredibly efficient way to consume our product as customers look to a more comprehensive assessment of risk. We have seen this with the strength in EP adoption and exposure solutions more broadly. A great example of this was a seven-figure EP competitive takeout deal with a large international financial institution. We had another strong quarter for both large six-figure deals and overall enterprise customer ads. We continue to see large deals entering and moving through our pipeline, and our confidence in the fundamentals of our business has never been stronger. Our ability to take advantage of this demand is a direct result of meaningful and critical investments we have made, organic and inorganic, to help our customers identify and manage their cyber exposure. Continuing to enhance our platform, we closed the acquisition of BitDiscovery, a provider for external attack surface management, enabling us to cover and assess internet-facing assets such as web applications, cloud resources, and open gateways. Following the closing of the acquisition, we delivered a new version of Nessus, Nessus Expert, that includes external asset discovery. External asset discovery will be included at no additional cost for our enterprise platform customers. And a separately sold context-aware external attack surface management offering for continuous discovery and ongoing monitoring is also available today. Cyber exposure management as a discipline is attracting attention from industry analysts and customers alike. It is an incredibly important approach to managing cyber risk, and it is an approach that we've pioneered over the last several years. We believe delivering on a successful cyber exposure management platform requires a unified, best-in-class approach across vulnerability management, cloud security, active directory security, OT security, and other parts of the attack surface, which we are successfully executing on. We believe our roots and laser focus position us incredibly well to be a market leader. As we continue to execute on our own vision, we're excited to see industry acknowledgement and the importance of this discipline. Continued coverage by Gartner talking about exposure management as a discipline amplifies this point. In particular, the importance of advancing cyber exposure management program as critical to developing actionable posture improvement plans that can be understood by executives. As boards and executives are pressured to understand their cybersecurity posture, having a clear view of risk is increasingly critical. Preventing cyber attacks requires full visibility into all assets and exposures, extensive context into potential security threats, and clear metrics to objectively measure cyber risk. Tenable's cyber exposure management platform delivers visibility across the modern attack surface with intelligent analytics to prioritize preventative actions and communicate risks to all levels of the organization. We are building the broadest understanding of cyber exposure spanning IT assets, cloud resources, containers, web applications, and identity services. We're delivering unifying analytics, prioritized actions, and benchmarking to help our customers truly manage risk more effectively. And that's a compelling capability. I will now turn the call over to Steve for further commentary on our financial results.