Tenable Holdings, Inc.

Greetings and welcome to Q3 2025 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Should anyone require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Erin Carney, Vice President, Investor Relations. Thank you. You may begin.

Thank you, Operator, and thank you all for joining us on today's conference call to discuss Tenable's third quarter 2025 financial results. With me on the call today are Co-Chief Executive Officers Steve Vince and Mark Thurman and Chief Financial Officer Matt Brown. 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 fourth quarter and full year of 2025, growth and drivers in our business, changes in the threat landscape in the security industry and anticipated shifts towards preemptive security approaches, our competitive position in the market, growth in customer demand for and adoption of our solution, including Tenable One, our exposure management platform, Our ability to expand integration with third-party tools and data sources and grow our ecosystem, planned innovation, research and development investments, and new products, services, and initiatives, and our expectations regarding long-term profitability and free cash flow. 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 beliefs and assumptions only as of today and should not be considered representative of our views as of any subsequent date. And we disclaim any obligation to update any forward-looking statements or outlook. For a 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 FDC. In addition, all of the financial results we'll discuss today are non-GAAP financial measures with the exception of revenue. 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 press release includes GAAP to non-GAAP reconciliations for these measures. I'll now turn the call over to Steve.

Thanks, Erin. Before we get started, I want to welcome Matt Brown to the Tenable team. Matt comes with tremendous experience and has hit the ground running since he joined us in August. With that, let's get into the quarter. In Q3, we exceeded all of our guided metrics, delivering 11% year-over-year revenue growth and 23% operating margins. We continue to see strong growth from Tenable One, our exposure management platform, which represented approximately 40% of new business during the quarter. We added 437 new enterprise platform customers in the quarter, a 13% increase compared to Q3 of 2024. Notably, half of all those customers are landing with exposure solutions with strong momentum globally. We believe our strong new platform traction reflects a fundamental shift in cybersecurity away from detection and response technologies and more toward a more preventative and preemptive approach. The reactive approach to cyber is where the tools, the budgets, the compliance priorities have lived for many years, simply trying to detect breaches. In fact, more than 95% of all cybersecurity spend today is on post-breach technologies. So consequently, less than 5% is spent on preemptive security. Now, the good news here is that that mix is expected to change significantly over the ensuing years, and we're starting to see signs of that shift with Tenable One. The obvious question is, why is this happening now? The short answer is AI. AI is dramatically reshaping the threat landscape. as attacks have become faster, more automated, and more sophisticated, exposing the limits of traditional reactive defenses. The takeaway here is that it's no longer just about firefighting. It's about fireproofing, and exposure management is helping customers make that shift. Market-leading exposure management starts with unified visibility, but it's more than just seeing assets, domains, and systems across your environment. It demands intelligence, context, and the ability to mobilize that insight into action. It's not just about knowing that a vulnerability exists, but understanding that it's on a critical asset that is actively exploited and sitting on a direct attack path to your crown jewels. It's also about using AI, not simply to find flaws, but to anticipate how an adversary may move through your environment and to see your organization the way an attacker does. and moreover, to mobilize before attackers do. We believe Tenable One is uniquely positioned to win in this next phase of security in this new AI world, given our roots and our strategic direction. Our foundation in vulnerability management gives us the data, the scale, and credibility to lead the shift toward exposure management. And we're building on that strength with focused investment and innovation. Notably, R&D is up over 20% year-to-date. reflecting significant investments in Tenable One that unify visibility, insight, and action across the full attack surface. In Q3, we launched Tenable AI Exposure, leveraging technology from Apex to give CISOs visibility into and control over the risk associated with generative AI. The solution helps organizations discover AI usage across their environments, understand how it impacts their attack surface, and identify potential exposure stemming from AI-enabled applications, code, and user behavior. It is a powerful example of how we continue to extend Tenable One to stay ahead of emerging threats. We also surpassed 300 validated integrations in the Tenable One platform, underscoring our progress in creating the most open and the most interconnected exposure management platform in the market. This open ecosystem is a key differentiator These integrations go beyond technical connectivity to unify visibility and insight across tools and data and teams. By breaking down silos between vulnerability management, cloud security, identity, OT operations, and the broader ecosystem of third-party tools, we are advancing how customers unify data, apply contacts, and orchestrate faster in a more coordinated way. As we continue advancing this vision, we are building a platform where connectivity drives action, where customers don't just see risk, they can act on it. Finally, we advanced our vulnerability priority rating across different domains, allowing for higher levels of smarter orchestration and mobilization for exposure management. This gives organizations even sharper precision in determining which risks demand immediate actions. Most enterprises are flooded with findings, and the challenge is not just seeing vulnerabilities, but knowing which ones matter. By combining real-world threat intelligence, contextualized asset data, and AI-driven analytics, our enhanced VPR helps customers focus their remediation efforts on the exposures that matter most. We believe that these innovations across visibility, insight, and action, combined with our growing open integration ecosystem, And our focused investment on preemptive security and R&D are what differentiate Tenable among the many vendors now laying claim to the exposure management space. And our quarter-wide customers are turning to us. I'd now like to turn the call over to Mark to discuss how customers and the industry are responding to the shift to exposure management and how we are leading them through this change.