Tenable Holdings Inc (TENB) 2023 Q3 法說會逐字稿

Greetings, and welcome to Tenable's Q3 2023 Earnings Conference Call.

您好，歡迎參加 Tenable 2023 年第三季財報電話會議。

(Operator Instructions) As a reminder this conference is being recorded.

（操作員說明）作為提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Erin Karney, Vice President Investor Relations. Thank you, Ms. Karney, you may begin.

現在我很高興向您介紹主持人，投資者關係副總裁艾琳卡尼 (Erin Karney)。謝謝卡尼女士，您可以開始了。

Thank you, operator, and thank you all for joining us on today's conference call to discuss Tenable's Third Quarter 2023 Financial Results. With me on the call today are Amit Yoran, our Chief Executive Officer; and Steve Vintz, 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.

感謝營運商，感謝大家參加今天的電話會議，討論 Tenable 2023 年第三季的財務業績。今天與我一起參加電話會議的是我們的執行長 Amit Yoran；以及我們的財務長 Steve Vintz。在此電話會議之前，我們發布了一份新聞稿，宣布了本季的財務表現。您可以在 IR 網站 tenable.com 上找到新聞稿。

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 fourth quarter and full year 2023 and expectations for the first quarter of 2024; growth and 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, including Tenable One; planned innovation and new products and services, the potential benefits and financial impact of our recent acquisition of Ermetic and our expectations regarding long-term profitability and free cash flow.

在開始之前，請允許我提醒您，我們將在本次電話會議期間做出前瞻性聲明，包括與我們對2023 年第四季度和全年的指導和預期以及對2024 年第一季的預期相關的聲明；我們業務的成長和驅動因素；安全產業威脅格局的變化以及我們在市場中的競爭地位；客戶對我們的解決方案（包括 Tenable One）的需求和採用率不斷增長；該計劃的創新以及新產品和服務、我們最近收購 Ermetic 的潛在收益和財務影響以及我們對長期盈利能力和自由現金流的期望。

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 a further discussion of the material risks and important factors that could affect our actual results, please refer to those contained in our most recent annual report on Form 10-K, our quarterly report on Form 10-Q for the quarter ended June 30, 2023, and subsequent reports that we file with the SEC, which are available on the SEC website at sec.gov.

這些前瞻性陳述涉及風險和不確定性，其中一些風險和不確定性超出了我們的控制範圍，這可能導致實際結果與這些陳述預期的結果有重大差異。您不應依賴前瞻性陳述來預測未來事件。前瞻性陳述僅代表我們管理階層截至今天的信念和假設，不應被視為代表我們在任何後續日期的觀點。我們不承擔更新任何前瞻性陳述或展望的義務。有關可能影響我們實際業績的重大風險和重要因素的進一步討論，請參閱我們最新的 10-K 表格年度報告、截至 6 月 30 日的季度 10-Q 表格季度報告中的內容， 2023 年，以及我們向SEC 提交的後續報告，這些報告可在SEC 網站sec.gov 上取得。

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 equivalents. 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.

此外，在今天的電話會議中，我們將討論非公認會計準則財務指標。這些非公認會計原則財務指標是根據公認會計原則編制的財務績效指標的補充，而不是替代或優於這些指標。與最接近的 GAAP 同等指標相比，使用這些非 GAAP 財務指標有許多限制。我們今天發布的收益報告包括這些措施的 GAAP 與非 GAAP 調節表，也可在我們網站的投資者關係部分取得。

I'll now turn the call over to Amit.

我現在將把電話轉給阿米特。

Thank you, Erin. Today, I'll provide some context on our financial performance in the quarter, discuss the accelerating momentum we are seeing with our platform and touch on our growth strategy with cloud.

謝謝你，艾琳。今天，我將提供一些有關本季度財務業績的背景信息，討論我們在平台上看到的加速勢頭，並討論我們在雲端方面的成長策略。

We delivered a solid Q3 with strong contributions from Tenable One, OT and the public sector. In addition, we continue to deliver significant margin leverage by delivering a $10 million beat to operating income. While the underlying performance of the business was good this quarter, the mix of our business was different than we typically see and led to an unusual divergence between sales and CCB.

在 Tenable One、OT 和公共部門的大力貢獻下，我們在第三季取得了穩健的業績。此外，我們的營業收入超過 1000 萬美元，繼續提供顯著的利潤槓桿。雖然本季業務的基本業績良好，但我們的業務組合與我們通常看到的不同，導致銷售額與建行之間出現異常差異。

At a high level, due to the outsized strength in public sector, we saw a much larger mix shift to perpetual licenses and services with minimal contribution to CCB. Our flexible deployment model gives our customers the ability to optimize their architecture in the cloud, on-premise or hybrid, which directly benefits our customers through unified visibility and simplified management. We believe we are the only vendor to deliver exposure management for both on-premises and hybrid deployments, which enables us to address our customer deployments bias.

在高水準上，由於公共部門的巨大實力，我們看到更大的組合轉向永久許可證和服務，而對 CCB 的貢獻卻很小。我們靈活的部署模型使我們的客戶能夠在雲端、本地或混合中優化其架構，這透過統一的可見性和簡化的管理直接使我們的客戶受益。我們相信我們是唯一一家為本地和混合部署提供暴露管理的供應商，這使我們能夠解決客戶部署偏差。

During the quarter, we added a record number of 7-figure customers, a testament to the growing importance of our solutions and our strength in public sector and large enterprise. Our products are helping customers secure even more areas of their tax surface, expanding their use cases and consolidating around Tenable. In particular, our outperformance in federal reflects a strong mix of business and our expansion into larger, more strategic deals. We're also seeing great traction in signing large OT deals signaling our growing leadership in this space.

本季度，我們增加了創紀錄的 7 位數客戶，這證明了我們的解決方案日益重要以及我們在公共部門和大型企業中的實力。我們的產品正在幫助客戶確保更多的稅收範圍，擴大他們的用例並圍繞 Tenable 進行整合。特別是，我們在聯邦業務的優異表現反映了強大的業務組合以及我們向規模更大、更具策略性的交易的擴張。我們也看到簽署大型 OT 交易的巨大吸引力，這表明我們在這一領域的領導地位不斷增強。

This boils down to our installed customer base trusting us to expand beyond VM to help them manage risk using our portfolio of products. We believe our leadership in helping organizations understand risk positions us for considerable opportunity going forward that we think we are still in the early innings of.

這歸結於我們的固定客戶群信任我們能夠擴展到虛擬機器之外，幫助他們使用我們的產品組合管理風險。我們相信，我們在幫助組織了解風險方面的領導地位使我們在未來獲得大量機會，我們認為我們仍處於早期階段。

While we're pleased with our performance in the quarter and saw strength in large deals, we're seeing some softness in the mid-market, which we expect to persist in Q4 and into next year. As the use of technology continues to expand, customers are looking for clarity around their attack surface including accurately identifying all the assets in their environment and prioritizing, which areas of the attack surface are most at risk.

雖然我們對本季的業績感到滿意，並且看到了大型交易的強勁勢頭，但我們看到中端市場出現了一些疲軟，我們預計這種情況將在第四季度和明年持續存在。隨著技術的使用不斷擴大，客戶正在尋求清晰的攻擊面，包括準確識別其環境中的所有資產並確定攻擊面的哪些區域面臨的風險最大。

Tenable One connects the dots from externally facing points of attack across the entire surface of systems, identities, permissions, vulnerabilities and configurations and delivers differentiated analytics, including building asset inventory and identifying and prioritizing a top path, which magnify risk.

Tenable One 將整個系統、身分、權限、漏洞和配置中面向外部的攻擊點的各個點連接起來，並提供差異化的分析，包括建立資產庫存以及識別和優先考慮會放大風險的頂級路徑。

As an innovator, we continue to build out capabilities within Tenable One. We are now using generative AI to deliver faster, more intuitive insights so customers can be more efficient and focus more resources on preventing successful attacks. Additionally, we expect that new features, including AI-fueled identity assessment will only serve to accelerate our time to value for customers.

作為創新者，我們繼續在 Tenable One 中建立功能。我們現在使用生成式人工智慧來提供更快、更直觀的見解，以便客戶可以提高效率並集中更多資源來防止成功的攻擊。此外，我們預計包括人工智慧驅動的身份評估在內的新功能只會加速我們為客戶實現價值的時間。

Looking at the buying patterns of customers, we continue to see a broad distribution of asset types, particularly from our specialty products. We also saw strong adoption from Tenable One from our SecurityCenter customers this quarter. SecurityCenter customers represent a very sizable base. They're increasingly operating in hybrid environments. Our ability to deliver the insights and analytics from Tenable One without requiring them to go through structural changes resonate deeply with these customers.

從客戶的購買模式來看，我們繼續看到資產類型的廣泛分佈，尤其是我們的特色產品。本季我們也看到 SecurityCenter 客戶大力採用 Tenable One。 SecurityCenter 的客戶群非常龐大。他們越來越多地在混合環境中運行。我們能夠提供 Tenable One 的見解和分析，而無需進行結構性變更，這與這些客戶產生了深刻的共鳴。

Within our specialty products, we're seeing increased emphasis on Active Directory security and Cloud Security as customers continue to struggle with how to adequately manage risks in those areas of their attack surface. Tenable Cloud Security now with Ermetic is a complete code to cloud, highly competitive CNAPP offering. Customers everywhere understand that securing the cloud is critical and incredibly complex. Security teams have to be cloud experts to find and prioritize the most urgent risks and how to address them.

在我們的專業產品中，我們看到人們越來越重視 Active Directory 安全性和雲端安全，因為客戶繼續努力解決如何充分管理其攻擊面這些領域的風險。 Tenable Cloud Security 現在與 Ermetic 合作，是一個完整的雲端程式碼、極具競爭力的 CNAPP 產品。世界各地的客戶都明白，保護雲端安全至關重要且極為複雜。安全團隊必須是雲端專家，才能發現最緊迫的風險並確定其優先順序以及如何解決這些風險。

In many cases, customers do not even know what assets they have, let alone what access has been granted to those assets. The situation is complicated further as cloud adoption accelerates and naturally multiplies user identities, machine identities and the complex web of entitlements, which grow exponentially.

在許多情況下，客戶甚至不知道他們擁有哪些資產，更不用說對這些資產授予了哪些存取權限。隨著雲端運算的採用加速，使用者身分、機器身分和複雜的權利網路自然成倍增加，並且呈指數級增長，情況變得更加複雜。

Tenable and Ermetic are helping organizations address some of the most difficult challenges in cloud security today. Our cloud security solutions are simplifying security management to meet the increasing and relentless demands for cloud infrastructure growth. Additionally, they enable security professionals to understand the complex relationships and risk across assets, identities and their entitlement and reduce the risk caused by explosion in the volume and permission of users and machine identities in the cloud.

Tenable 和 Ermetic 正在幫助組織應對當今雲端安全中的一些最困難的挑戰。我們的雲端安全解決方案正在簡化安全管理，以滿足雲端基礎架構成長不斷增長的需求。此外，它們使安全專業人員能夠了解資產、身分及其權利之間的複雜關係和風險，並降低因雲端中使用者和機器身分的數量和權限爆炸而導致的風險。

The unique combination of Tenable and Ermetic gives customers a tightly integrated cloud-native application protection platform and capabilities for cloud environments. An elegant user experience minimizes complexity and can speed adoption. Even the more mature organizations have not yet integrated commonly deployed security tools like infrastructures code, cloud security posture management, cloud workload protection and cloud infrastructure entitlement management across multiple cloud environments.

Tenable 和 Ermetic 的獨特組合為客戶提供了緊密整合的雲端原生應用程式保護平台和雲端環境功能。優雅的使用者體驗可以最大限度地降低複雜性並加快採用速度。即使是較成熟的組織也尚未跨多個雲端環境整合常用部署的安全工具，例如基礎架構代碼、雲端安全態勢管理、雲端工作負載保護和雲端基礎架構權利管理。

Tenable and Ermetic can bring together greater context to our customers' overall security program by integrating these point products into a single unified CNAPP offering. We're delivering unparalleled insights into identities and access, which go hand-in-hand with configurations and vulnerabilities in being absolutely critical to securing cloud workloads. And with the integration of insights from Tenable One customers can also consolidate, simplify and reduce costs.

Tenable 和 Ermetic 可以透過將這些單點產品整合到一個統一的 CNAPP 產品中，為客戶的整體安全計畫提供更豐富的背景資訊。我們正在提供對身分和存取的無與倫比的見解，這與配置和漏洞密切相關，對於保護雲端工作負載至關重要。透過整合 Tenable One 的見解，客戶還可以整合、簡化並降低成本。

Our sellers are having incredible engagement with our customers. Pipeline is strong out of the gate and excitement is running high. We continue to execute well with our product vision and balanced growth strategy. Over the next few quarters, we'll continue to execute on our product road map and integrate Ermetic, which we expect to enable us to demonstrate more leverage in our business.

我們的賣家與客戶有著令人難以置信的互動。管道一開始就很強大，人們興奮不已。我們繼續良好地執行我們的產品願景和平衡成長策略。在接下來的幾個季度中，我們將繼續執行我們的產品路線圖並整合 Ermetic，我們希望這將使我們能夠在我們的業務中展示更多的影響力。

Cybersecurity has never been more important nor more fundamental to our economies and business than it is today, requiring corporate leaders to elevate cybersecurity within their organizations. As just one example, the SEC's recent cyber risk management and incident disclosure rules require disclosures on board oversight and management's role in assessing and managing material risks from cybersecurity threats. Companies will continue to feel pressure from management teams, Boards and increasingly, regulators, shareholders and customers, and we will continue to turn to Tenable to understand where they're exposed and how to reduce risk.

網路安全對我們的經濟和企業來說從未像現在這樣重要和基礎，這要求企業領導者提高組織內的網路安全水準。舉一個例子，美國證券交易委員會最近的網路風險管理和事件揭露規則要求揭露董事會監督和管理層在評估和管理網路安全威脅重大風險方面的作用。公司將繼續感受到來自管理團隊、董事會以及越來越多的監管機構、股東和客戶的壓力，我們將繼續向 Tenable 尋求協助，以了解他們面臨的風險以及如何降低風險。

I'll now turn the call over to Steve for further commentary on our financial results and outlook.

我現在將把電話轉給史蒂夫，請他對我們的財務表現和前景進行進一步評論。

Thank you. As Amit discussed earlier, we are pleased with the underlying performance of the business this quarter which is not reflected in our calculated current billings. I will provide more commentary momentarily but first, please note that all financial results we discuss today are non-GAAP financial measures with the exception of revenue. As Erin mentioned at the start of this call, GAAP to non-GAAP reconciliations may be found in our earnings release issued earlier today.

謝謝。正如阿米特之前討論的那樣，我們對本季業務的基本業績感到滿意，但這並未反映在我們計算的當前帳單中。我將立即提供更多評論，但首先請注意，我們今天討論的所有財務表現均為非公認會計準則財務指標（收入除外）。正如艾琳在本次電話會議開始時所提到的，公認會計準則與非公認會計準則的對帳可能會在我們今天稍早發布的收益報告中找到。

Now on to the results for the quarter. Calculated current billings, defined as revenue recognized in the quarter, plus the change in current deferred revenue grew 8% year-over-year to $224.7 million. As I have mentioned on prior calls, CCB is typically a close but not perfect proxy for sales in the quarter and is influenced by a number of factors such as mix of business, deal timing, including early renewals.

現在來看本季的業績。計算得出的當前帳單（定義為本季確認的收入）加上當前遞延收入的變化，年增 8%，達到 2.247 億美元。正如我在先前的電話會議中提到的，建行通常是本季銷售額的近似但不完美的代表，並受到多種因素的影響，例如業務組合、交易時機，包括提前續約。

Since our IPO, CCB growth has generally tracked in line with the underlying sales growth of the business. However, this is the first quarter in which there was such a large disparity. Current RPO growth in the quarter was 15% and is a closer approximation of the underlying performance of the business this quarter.

自我們首次公開募股以來，建行的成長總體上與業務的基本銷售成長保持一致。然而，這是第一次出現如此大的差異。本季目前的 RPO 成長率為 15%，更接近本季業務的基本業績。

During the quarter, we saw significant outperformance in the public sector. specifically in U.S. Federal, which benefited from a robust spending environment related to the September 30 fiscal year-end. We closed a few strategic agency-wide 7-figure deals on both the defense and the civilian side, some of which are listed on public procurement sites. Consequently, the outperformance in U.S. Federal resulted in a higher mix of public sector sales and overall, a much higher mix of professional services and perpetual licenses that either did not contribute or minimally contributed to CCB in the quarter. The total impact here was approximately $12 million of lower CCB in the quarter.

在本季度，我們看到公共部門的表現顯著出色。特別是美國聯​​邦銀行，受益於 9 月 30 日財年結束時強勁的支出環境。我們在國防和民用方面完成了幾項全機構範圍內價值 7 位數的戰略交易，其中一些已在公共採購網站上列出。因此，美國聯邦的優異表現導致公共部門銷售組合增加，總體而言，專業服務和永久許可證的組合增加，而這些組合在本季度對 CCB 沒有貢獻或貢獻很小。本季 CCB 下降的總影響約為 1,200 萬美元。

To provide a little more color, these services were sold primarily with our VM and OT offerings that are tied to large government programs and included initial software purchases as part of deployment planning exercises that we expect will result in additional product purchases over the next several quarters. We believe these large strategic wins not only demonstrate our leadership position in the federal market but also give us a very significant opportunity to sell additional software in future periods. Also, please note that perpetual license software sales are recognized over 5 years, not upfront. So 4/5 of the annual contract is excluded from CCP.

為了提供更多色彩，這些服務主要與我們的VM 和OT 產品一起銷售，這些產品與大型政府計劃相關，並包括作為部署規劃練習的一部分的初始軟體購買，我們預計這將導致在未來幾個季度購買更多產品。我們相信，這些重大戰略勝利不僅證明了我們在聯邦市場的領導地位，而且還為我們提供了在未來銷售更多軟體的非常重要的機會。另請注意，永久許可軟體銷售在 5 年內確認，而不是預先確認。因此，年度合約的 4/5 不包括在 CCP 中。

Another major highlight was Tenable One, which represented 20% of new sales in the quarter and grew over 100% year-over-year. Despite these strengths, we did start to see some headwinds in the mid-market where spending was constrained, particularly with new logos. It's important to note that while the top of the funnel remains strong, there appears to be a more cautious outlook from buyers in this market related to the broader macro, which impacted our conversion rates in the quarter.

另一個主要亮點是 Tenable One，佔本季新增銷售額的 20%，較去年同期成長超過 100%。儘管有這些優勢，我們確實開始看到中端市場的一些阻力，那裡的支出受到限制，特別是在新標誌方面。值得注意的是，雖然漏斗頂部仍然強勁，但該市場的買家似乎對更廣泛的宏觀經濟前景持更加謹慎的態度，這影響了我們本季的轉換率。

In terms of key metrics, we added 386 new enterprise platform customers in the quarter. Also, as discussed earlier, large deals were strong as we added 58 net new 6-figure customers in the quarter. And we also closed a record number of 7-figure deals in the quarter, which reflects strength in the large enterprise market as well as the public sector.

就關鍵指標而言，本季我們新增了 386 位企業平台客戶。此外，正如前面所討論的，大宗交易很強勁，因為我們在本季度淨增加了 58 個 6 位數的新客戶。本季我們也完成了創紀錄的 7 位數交易，這反映了大型企業市場和公共部門的實力。

Our dollar-based net expansion rate was 111% in the quarter, compared to 111% last quarter. As a reminder, the expansion rate is calculated on an LTM basis. Revenue was $201.5 million, which represents 15% year-over-year growth. Revenue in the quarter exceeded the midpoint of our guided range by $3.5 million. Our percentage of recurring revenue remains high at 95% this quarter, which is consistent with prior periods.

本季以美元計算的淨擴張率為 111%，而上季為 111%。提醒一下，擴張率是根據 LTM 計算的。營收為 2.015 億美元，年增 15%。該季度的收入超出了我們指導範圍的中點 350 萬美元。本季我們的經常性收入百分比仍保持在 95% 的高位，這與先前的時期一致。

I'll now turn to expenses. I'll start with gross margin, which was 80% this quarter compared to 81% last quarter. As I mentioned on the last call, we expect margins to be modestly lower in the second half of the year as we absorb the initial public cloud costs related to the upcoming relief of cyber asset management and AI-powered analytics.

我現在談談費用。我將從毛利率開始，本季毛利率為 80%，而上季為 81%。正如我在上次電話會議中提到的，我們預計下半年的利潤率將小幅下降，因為我們吸收了與即將到來的網路資產管理和人工智慧分析的緩解相關的初始公有雲成本。

Sales and marketing expense was $79 million, which was down from $81.4 million last quarter. Sales and marketing expense as a percentage of revenue was 39%, compared to 42% last quarter. Sales and marketing expense decreased sequentially, primarily due to lower personnel costs and event marketing spend related to the timing of industry conferences, partially offset by higher commission expense.

銷售和行銷費用為 7,900 萬美元，低於上季的 8,140 萬美元。銷售和行銷費用佔收入的百分比為 39%，而上季為 42%。銷售和行銷費用環比下降，主要是由於與行業會議時間相關的人員成本和活動行銷支出下降，但部分被佣金費用上升所抵消。

R&D expense was $27.8 million, which was down from $28.1 million last quarter. R&D expense as a percentage of revenue was 14% this quarter, flat in comparison to last quarter. R&D expense decreased sequentially primarily due to lower personnel costs, partially offset by increased public cloud costs. G&A expense was $18.5 million, which is up from $17.8 million last quarter. G&A expense as a percentage of revenue was 9% this quarter and flat relative to last quarter.

研發費用為 2,780 萬美元，低於上季的 2,810 萬美元。本季研發費用佔營收的比例為 14%，與上季持平。研發費用較上季下降主要是因為人員成本下降，但部分被公有雲成本增加所抵銷。一般管理費用為 1,850 萬美元，高於上季的 1,780 萬美元。本季的一般管理費用佔收入的百分比為 9%，與上季持平。

Income from operations was $36.6 million, which was significantly better than expected and exceeded the midpoint of our guided range by approximately $10 million. Operating margin for the quarter was 18%, which was 470 basis points better than the midpoint of our guidance. The sizable upside in earnings this quarter reflects the strength of our business model and our ability to cost effectively acquire customers and expand those relationships over time. It's also worth noting that our operating margin improved over the same period last year by approximately 490 basis points.

營運收入為 3,660 萬美元，明顯優於預期，超出我們指導範圍的中位數約 1,000 萬美元。本季營業利益率為 18%，比我們指引的中位數高 470 個基點。本季收益的大幅成長反映了我們業務模式的優勢以及我們以成本效益方式獲取客戶並隨著時間的推移擴大這些關係的能力。另外值得注意的是，我們的營業利潤率比去年同期提高了約 490 個基點。

Additionally, you will note $6.5 million of other expense net this quarter. Included in this amount is a $5 million impairment charge related to a strategic investment in a privately held company. All of this resulted in EPS of $0.23, which was approximately $0.045 better than the midpoint of our guided range.

此外，您還會注意到本季其他費用淨額為 650 萬美元。其中包括與對私人公司的策略性投資相關的 500 萬美元減損費用。所有這些導致 EPS 為 0.23 美元，比我們指導範圍的中位數高出約 0.045 美元。

Now let's turn to the balance sheet. We finished the quarter with $693 million in cash and short-term investments. Accounts receivable was $179.4 million and total deferred revenue was $681.5 million, including $518.4 million of current deferred revenue, which gives us a lot of visibility into expected revenue over the next 12 months.

現在讓我們轉向資產負債表。本季結束時，我們擁有 6.93 億美元的現金和短期投資。應收帳款為 1.794 億美元，遞延收入總額為 6.815 億美元，其中包括 5.184 億美元的當期遞延收入，這使我們能夠很好地了解未來 12 個月的預期收入。

We generated approximately $48 million of unlevered free cash flow during the quarter. Year-to-date, unlevered free cash flow was $132 million, which pushed us well within reach to achieve our annual unlevered free cash flow target for the full year, which we are raising today after adjusting for the Ermetic acquisition. With 95% recurring revenue, high gross margins and renewal rates, we feel confident that we can continue to expand our operating and free cash flow margins over the ensuing years.

本季我們產生了約 4800 萬美元的無槓桿自由現金流。年初至今，無槓桿自由現金流為 1.32 億美元，這使我們完全有能力實現全年無槓桿自由現金流目標，我們今天在對 Ermetic 收購進行調整後籌集了該目標。憑藉 95% 的經常性收入、高毛利率和續訂率，我們有信心在接下來的幾年中繼續擴大我們的營運利潤率和自由現金流利潤率。

With the results of the quarter behind us, I'd like to discuss our outlook for the fourth quarter and full year 2023, which reflects the estimated impact of the Ermetic acquisition that closed on October 2. For the fourth quarter, we currently expect revenue to be in the range of $204 million to $208 million, non-GAAP income from operations to be in the range of $23 million to $24 million. Non-GAAP net income to be in the range of $16 million to $17 million, assuming interest expense of $8.3 million, interest income of $4.9 million and a provision for income taxes of $3 million.

隨著本季業績的公佈，我想討論一下我們對 2023 年第四季度和全年的展望，這反映了 10 月 2 日完成的 Ermetic 收購的估計影響。對於第四季度，我們目前預計收入預計將在2.04 億美元至2.08 億美元之間，非GAAP 營運收入將在2,300 萬美元至2,400 萬美元之間。假設利息支出為 830 萬美元，利息收入為 490 萬美元，所得稅準備金為 300 萬美元，非 GAAP 淨利潤將在 1,600 萬美元至 1,700 萬美元之間。

Non-GAAP diluted earnings per share to be in the range of $0.13 to $0.14, assuming 123.5 million fully diluted weighted average shares outstanding. And for the full year, we currently expect calculated current billings to be in the range of $862 million to $870 million, revenue to be in the range of $789.4 million to $793.4 million. Non-GAAP from operations to be in the range of $107.9 million to $108.9 million. Non-GAAP net income to be in the range of $83 million to $84 million assuming interest expense of $31.5 million, interest income of $24.2 million and a provision for income taxes of $9.1 million.

假設完全攤薄加權平均流通股為 1.235 億股，非公認會計原則攤薄後每股收益將在 0.13 美元至 0.14 美元之間。對於全年，我們目前預計計算出的當前帳單將在 8.62 億美元至 8.70 億美元之間，收入將在 7.894 億美元至 7.934 億美元之間。非 GAAP 營運收入將在 1.079 億美元至 1.089 億美元之間。假設利息支出為 3,150 萬美元，利息收入為 2,420 萬美元，所得稅準備金為 910 萬美元，則非 GAAP 淨利潤將在 8,300 萬美元至 8,400 萬美元之間。

Non-GAAP diluted earnings per share to be in the range of $0.68 to $0.69 per share, assuming 121 million fully diluted weighted average shares outstanding and unlevered free cash flow to be in the range of $168 million to $173 million.

假設 1.21 億股完全稀釋加權平均流通股和無槓桿自由現金流在 1.68 億美元至 1.73 億美元範圍內，非公認會計準則稀釋後每股收益將在 0.68 美元至 0.69 美元之間。

I'd like to provide some commentary regarding our outlook today. The trends we observed in the mid-market in Q3 are expected to persist. So we think it's appropriate, revise our CCB range for the year to reflect a more cautious outlook in Q4 as well as the flow-through of our CCB results in the third quarter. Revenue, which is recurring in nature, reflects a $3.5 million beat in Q3 and a $1 million rate. Also as a reminder, Ermetic is not expected to contribute materially to the top line in the fourth quarter.

我想就我們今天的前景發表一些評論。我們在第三季中端市場觀察到的趨勢預計將持續下去。因此，我們認為調整今年的 CCB 範圍以反映第四季度更加謹慎的前景以及第三季 CCB 業績的變化是適當的。收入本質上是經常性的，第三季的收入超過 350 萬美元，成長率為 100 萬美元。另外提醒一下，Ermetic 預計不會對第四季的營收做出重大貢獻。

In terms of profitability, we are increasing our outlook for income from operations for the full year by $10 million, which reflects a $15 million beaten raise for Tenable and less $5 million related to the impact of the Ermetic acquisition. Net income for the full year reflects a $10 million beat in rate for Tenable, less $8 million related to the impact of Ermetic, which includes $3 million of foregone interest income. We're also revising our outlook for unlevered free cash flow to reflect a $3 million rate for Tenable due to the operational efficiencies we continue to realize in our business, less $15 million of costs due to the impact of the acquisition.

在獲利能力方面，我們將全年營運收入預期上調了 1000 萬美元，這反映出 Tenable 的漲幅超出了 1500 萬美元，而與 Ermetic 收購的影響相關的收入減少了 500 萬美元。 Tenable 全年淨利潤比預期高出 1000 萬美元，減去與 Ermetic 影響相關的 800 萬美元，其中包括 300 萬美元的放棄利息收入。我們也修改了對無槓桿自由現金流的展望，以反映Tenable 的無槓桿自由現金流為300 萬美元，因為我們在業務中不斷實現營運效率，同時由於收購的影響而減少了1500 萬美元的成本。

In terms of 2024, we will provide guidance for Q1 and the full year on our earnings call in February but we believe mid-teen CCB growth, which reflects the contribution from Ermetic and the current selling environment in the mid-market is a fair expectation of growth for the upcoming year. Q4 is an important input, the setting expectations for the upcoming year. So we want to have that data point in hand before we discuss the business in more specific terms.

就2024 年而言，我們將在2 月的財報電話會議上提供第一季和全年的指引，但我們認為CCB 的中位數成長（反映了Ermetic 的貢獻）和目前中階市場的銷售環境是合理的預期來年的成長。第四季是一個重要的輸入，設定了對來年的預期。因此，在我們更具體地討論業務之前，我們希望掌握該數據點。

All of that said, we will continue to effectively balance growth with profitability and expect unlevered free cash flow to grow approximately 25% next year, which reflects the anticipated impact of Ermetic. We expect Ermetic to be breakeven and unlevered free cash flow in the fourth quarter of 2024 and be accretive to EPS for the full year in 2025.

儘管如此，我們將繼續有效平衡成長與獲利能力，並預計明年無槓桿自由現金流將成長約 25%，這反映了 Ermetic 的預期影響。我們預計 Ermetic 將在 2024 年第四季實現損益兩平和無槓桿自由現金流，並在 2025 年全年增加每股收益。

At this point, I'd like to turn the call back over to Amit for some closing comments.

此時，我想將電話轉回給阿米特，以徵求一些結束語。

Thanks, Steve. In summary, Q3 is a clear indication of our ability to drive continued leverage in the business. We are at an exciting time in our business and have a ton of opportunity ahead of us. We look forward to updating you on our next call and seeing you at Needham, D.A. Davidson, Wells Fargo, Stephens and Barclays conferences in the coming weeks. Additionally, we expect to have our Investor Day in the first half of 2024.

謝謝，史蒂夫。總之，第三季清楚地表明了我們推動業務持續槓桿化的能力。我們的業務正處於一個激動人心的時刻，前方有大量的機會。我們期待在下次電話會議上向您通報最新情況，並期待在 D.A. 尼達姆見到您。戴維森、富國銀行、史蒂芬斯和巴克萊銀行將在未來幾週內舉行會議。此外，我們預計將於 2024 年上半年舉辦投資者日。

We'd now like to open the call up for questions.

我們現在想開始提問。

(Operator Instructions) The first question comes from the line of Brian Essex with JPMorgan.

（操作員說明）第一個問題來自摩根大通的布萊恩‧艾塞克斯（Brian Essex）。

Steve, really appreciate the color around the moving pieces with CCB. Amit, just a question for you, and I'll maybe keep it to one. With regard to code to cloud security, we're seeing a lot of different companies target this space, whether it's larger platform vendors or best-of-breed vendors operating in certain niches of that market. Who do you typically see competitively? How are you winning in that market? And what is your outlook for market share in that as we kind of like think about your ability to penetrate that space in the years ahead?

Steve，真的很欣賞 CCB 的移動部件周圍的顏色。阿米特，我想問你一個問題，我可能只會問一個問題。關於雲端安全的程式碼，我們看到許多不同的公司都瞄準了這個領域，無論是較大的平台供應商還是在該市場的某些利基市場中運營的最佳供應商。你通常會看到誰來參加比賽？您如何在該市場獲勝？當我們考慮一下您在未來幾年滲透到該領域的能力時，您對市場份額的前景有何看法？

Yes. So I guess I'll start off by saying Tenable has been an active participant in the cloud security market for some time. Obviously, we move forward with an acquisition of Accurics some time ago. We continue to build organic capability agentless assessment and do some integration along those lines. With the most recent acquisition at the beginning of Q4 of Ermetic, we believe we have a highly competitive, fully integrated CNAPP offering that can look at infrastructure's code, see what that build-out looks like, assess systems and how they're operating in real time in cloud environments.

是的。因此，我想我首先要說的是，Tenable 長期以來一直是雲端安全市場的積極參與者。顯然，我們不久前就推進了對 Accurics 的收購。我們繼續建立有機的無代理能力評估，並沿著這些方向進行一些整合。隨著第四季度初對 Ermetic 的最新收購，我們相信我們擁有高度競爭力、完全整合的 CNAPP 產品，可以查看基礎設施的程式碼、構建的外觀、評估系統及其運作方式在雲端環境中即時。

And so we have that very elegant code to cloud visibility and also the ability to go inverse. So from a piece of operating code in -- so from operating live systems in cloud environments, we can trace back toward the code, which produce those systems and how they're executing. So we feel like we've got a highly differentiated, highly competitive capabilities in the integration of Tenable's existing functionality and cloud capabilities with what Ermetic brings to the table.

因此，我們擁有非常優雅的雲可見性程式碼以及逆向的能力。因此，從雲端環境操作即時系統的一段操作程式碼中，我們可以追溯到產生這些系統以及它們如何執行的程式碼。因此，我們認為，在將 Tenable 的現有功能和雲端功能與 Ermetic 帶來的功能整合方面，我們擁有高度差異化、高度競爭的能力。

To that end, we think we're going to be head-to-head competitive with all of the major and market-leading CNAPP vendors out there and feel like we have a number of key differentiators and capabilities, including the cloud infrastructure entitlement management functionality that is market leading, which Ermetic brings to the table and our visibility -- and our ability to give customers visibility across hybrid environments. So not just what's happening in their cloud or what systems they have, they are connecting to their cloud and the much more accurate picture of overall exposure.

為此，我們認為我們將與所有主要的、市場領先的 CNAPP 供應商進行正面競爭，並且我們認為我們擁有許多關鍵的差異化優勢和能力，包括雲端基礎設施權利管理Ermetic 帶來的市場領先功能和我們的可見性，以及我們為客戶提供跨混合環境可見性的能力。因此，他們不僅可以了解雲端中發生的情況或擁有的系統，還可以連接到雲端以及更準確的整體曝光。

That's great. Maybe a quick follow-up. Are you currently seeing those vendors competitively now? Or is it mostly greenfield treated?

那太棒了。也許是快速跟進。您目前看到這些供應商具有競爭力嗎？還是大部分都是綠地處理？

No, we're seeing those vendors competitively now. Again, we've differentiated ourselves in a number of fronts historically, including how tightly we can integrate the on-prem and cloud vulnerabilities including the agentless assessment and infrastructure's code, I think with the addition of Ermetic and unified elegant CNAPP offering, we feel like we can continue to leverage those traditional differentiators, but -- and also go direct head-to-head competition with all of the market-leading CNAPP vendors and win more than our fair share.

不，我們現在看到這些供應商具有競爭力。同樣，我們在歷史上已經在許多方面脫穎而出，包括我們如何緊密地整合本地和雲端漏洞，包括無代理評估和基礎設施的程式碼，我認為透過添加 Ermetic 和統一優雅的 CNAPP 產品，我們覺得就像我們可以繼續利用這些傳統的差異化優勢一樣，而且還可以與所有市場領先的CNAPP 供應商進行直接的正面競爭，並贏得超過我們公平份額的份額。

Next question comes from the line of Rob Owens with Piper Sandler.

下一個問題來自 Rob Owens 和 Piper Sandler 的對話。

I'm going to follow in line with Brian and ask one question that's really going to turn into two. Steve, first of all, just around the CCB discussion, and I appreciate the disclosure there. Is the commentary around the fact that when it's a perpetual deal, it's ACV is actually less? And so that negatively impacts CCB? Because obviously, billings as revenue plus change in deferred, so you're getting the revenue more upfront? Or is it the services that are associated with the contract that then wouldn't be necessarily in deferred revenue, given how those work? I was a little confused.

我將跟隨布萊恩提出一個問題，這個問題實際上會變成兩個問題。 Steve，首先，關於 CCB 的討論，我很欣賞那裡的披露。評論是否圍繞著這樣一個事實：當它是永久交易時，ACV 實際上會更少？那麼這會對建行產生負面影響嗎？因為顯然，帳單作為收入加上遞延的變化，所以您可以更預先獲得收入嗎？或者，考慮到這些服務的運作方式，與合約相關的服務不一定會包含在遞延收入中？我有點困惑。

Yes. Rob, so we mentioned the outperformance in public sector, which weighed on CCB. And specifically, we saw -- if you look at our performance in public sector, specifically U.S. Federal, it was twice as high this quarter in terms of mix of business as any quarter we've experienced previously since going public. So a much higher mix of business. Fed procurement bias is more weighted towards perpetual licenses, and these deals are large and complex and strategic in nature and came with a higher level of services. So it was the combination of both perpetual licenses and professional services that's not fully reflected in CCB.

是的。羅布，所以我們提到了公共部門的優異表現，這給建行帶來了壓力。具體來說，我們看到 - 如果你看看我們在公共部門，特別是美國聯​​邦部門的表現，就業務組合而言，本季度的表現是我們上市以來經歷過的任何季度的兩倍。所以業務組合要高很多。聯準會的採購偏重於永久許可證，這些交易規模龐大、複雜且具有策略性，並附帶更高水準的服務。因此，永久許可和專業服務的結合並沒有在CCB中充分體現。

With regard to perpetual licenses, these perpetual licenses are, in effect, amortized over 5 years. That's how we recognize revenue. So consequently, only 1/5 of the annual contract value related to these deals are reflected in calculated current billings. Professional services will be delivered over the course of the next several quarters. And unlike our enterprise customers, these services cannot be built upfront and consequently, they're not included CCB.

對於永久許可，這些永久許可實際上在 5 年內攤提。這就是我們確認收入的方式。因此，與這些交易相關的年度合約價值中只有 1/5 反映在計算的當前帳單中。專業服務將在接下來的幾個季度內提供。與我們的企業客戶不同，這些服務無法預先建構，因此，它們不包含在 CCB 中。

Great. And then, Amit, for you. Obviously, very unfortunate with the geopolitical situation in the Middle East right now. And I know Ermetic is over there. I'm just curious given when it was acquired and what's transpired since any changes to time line, thoughts of integration into the cloud security suite as well?

偉大的。然後，阿米特，為你。顯然，目前中東的地緣政治局勢非常不幸。我知道埃爾梅蒂克就在那裡。我只是好奇它是什麼時候被收購的，以及時間軸發生任何變化之後發生了什麼，以及整合到雲端安全套件的想法嗎？

Yes. I'll start off just by saying our team there is incredibly resilient and incredibly proud of the work that they're doing and their ability to keep focus. That said, we do anticipate some modest delays in integration activities. But for the most part and at a strategic level, they continue to move forward and feel like those changes will be modest.

是的。首先我要說的是，我們的團隊非常有彈性，對他們正在做的工作和保持專注的能力感到非常自豪。也就是說，我們確實預期整合活動會出現一些適度的延遲。但在大多數情況下，在策略層面上，他們繼續前進，並認為這些變化將是適度的。

Next question comes from the line of Joel Fishbein with Truist Securities.

下一個問題來自 Truist Securities 的 Joel Fishbein。

I have one for you similar to Brian but on the OT space. That space seems to be crowded, but it seems like you are doing well there. And I'd love to just understand the competitive dynamics of the space and then why Tenable is winning there? A lot of the companies we cover are talking about OT but it seems like you've got some real traction there, a little bit -- just get a little bit more color.

我有一個類似 Brian 的東西給你，但在 OT 空間。那個空間看起來很擁擠，但看起來你在那裡做得很好。我很想了解該領域的競爭動態，以及為什麼 Tenable 能在那裡獲勝？我們報道的許多公司都在談論 OT，但似乎你在那裡有一些真正的吸引力，一點點——只是多一點色彩。

Yes. We're incredibly bullish about our OT business. And that comes on the heels of a couple of quarters in succession here where we're talking about it on the earnings call, saying we're pulling down larger 6-figure and 7-figure deals. We're winning larger opportunities in both public sector -- significant opportunities in public sector with OT and continued traction in critical infrastructure. We think these are markets that will continue to grow in importance from a cybersecurity perspective. There's a couple of key differentiators for us.

是的。我們非常看好我們的 OT 業務。在此之前，我們連續幾個季度在財報電話會議上討論了這一問題，稱我們正在取消更大的 6 位數和 7 位數交易。我們在公共部門贏得了更大的機會——透過 OT 和關鍵基礎設施的持續牽引，在公共部門贏得了重大機會。我們認為，從網路安全的角度來看，這些市場的重要性將持續成長。我們有幾個關鍵的差異化因素。

One is we've got a very large and robust and diverse customer base on a global basis. They're used to coming to us to help them evaluate cyber risk. And we think that visibility, which we can provide on a unified basis across both OT and IT is a strategic differentiator for us relative to what most OT vendors provide, which is just a very myopic focus on control systems.

一是我們在全球擁有非常龐大、強大且多元化的客戶群。他們習慣來找我們幫助他們評估網路風險。我們認為，相對於大多數OT 供應商提供的產品，我們可以在OT 和IT 領域統一提供可見性，這對我們來說是一個策略差異化因素，而大多數OT 供應商只是非常短視地關注控制系統。

If you walk through a factory floor, if you look at a pipeline, if you look at manufacturing operations, data center automation, what you'll see is that all of these systems, all of these activities have a combination of OT and IT in their environment, and it's impossible to help someone assess and understand the risk to that operation looking only at control systems.

如果您走過工廠車間，如果您查看管道，如果您查看製造營運、資料中心自動化，您會看到所有這些系統、所有這些活動都結合了 OT 和 IT他們的環境，並且僅透過控制系統來幫助某人評估和理解該操作的風險是不可能的。

So we think we've got a highly competitive product. We think it's strategically differentiated in our ability to combine IT and OT in the evaluation of risk. And we've got a significant customer base and distribution for that technology into a what is a rapidly growing market.

所以我們認為我們擁有極具競爭力的產品。我們認為，我們在風險評估中結合 IT 和 OT 的能力具有策略差異性。我們擁有重要的客戶群，並將該技術推廣到快速成長的市場。

Next question comes from the line of Hamza Fodderwala with Morgan Stanley.

下一個問題來自哈姆扎·福德瓦拉 (Hamza Fodderwala) 與摩根士丹利 (Morgan Stanley) 的對話。

Steve, maybe a question for you and Amit as well. Just if I look at your outlook here, so you did about 8.5% on current billings growth this quarter. The guidance for Q4 implies somewhere between 10% to 11% and then you're guiding for mid-teens next year, I guess, if you back out the acquisition sort of low teens. I'm just curious because it does seem like the environment got a little bit worse for you on the mid-market side. What gives you confidence that you can accelerate next year?

史蒂夫，也許也有個問題想問你和阿米特。如果我看一下你們的前景，你們本季目前的帳單成長約為 8.5%。第四季的指導意味著介於 10% 到 11% 之間，然後我猜，如果你取消收購，明年的指導將是十幾歲左右。我只是很好奇，因為中階市場的環境似乎確實變得更糟了。是什麼讓您有信心明年可以加速？

Hamza, this is Steve. Yes, our guidance for the fourth quarter does assume at the midpoint 11% and at the high end, 12%, the range is 9% to 12% here. As we look out over the next year, I think the selling conditions that we're seeing today, specifically in the mid-market, we expect to persist. And what we said direction for next year is mid-teens growth. That's inclusive of the contribution from Ermetic.

哈姆扎，這是史蒂夫。是的，我們對第四季度的指導確實假設中點為 11%，高端為 12%，這裡的範圍是 9% 到 12%。當我們展望明年時，我認為我們今天看到的銷售狀況，特別是在中端市場，我們預計將持續下去。我們所說的明年的方向是十幾歲左右的成長。其中包括 Ermetic 的貢獻。

And so largely, if we look at next year, we're assuming no change in the selling conditions, same selling environment. And we also have some slightly easier compares. So that also skews growth a little bit. So I think we're taking a cautious approach to our outlook next year. But again, Q4 is a big quarter for us. And it's important to have that data point in hand.

很大程度上，如果我們展望明年，我們假設銷售條件沒有變化，銷售環境相同。我們還有一些稍微容易的比較。因此，這也稍微扭曲了成長。因此，我認為我們對明年的前景持謹慎態度。但同樣，第四季對我們來說是一個重要的季度。掌握該數據點很重要。

So in February, we'll provide guidance and talk about the business in more specific terms, but we want to make sure that we have a cautious outlook. And there's a lot of great things about our business and the performance in the quarter was really strong as we're commenting. It's not reflected in TCB but saw major outperformance in U.S. Federal. But we think it's appropriate just given some of the selling conditions in the mid-market to take a cautious approach here.

因此，在二月份，我們將提供指導並以更具體的方式討論業務，但我們希望確保我們對前景持謹慎態度。我們的業務有很多偉大的事情，正如我們所評論的那樣，本季的業績非常強勁。它沒有反映在 TCB 中，但在美國聯邦銀行中表現出色。但我們認為，考慮到中端市場的一些銷售狀況，在此採取謹慎態度是適當的。

Yes. I guess the only thing I would add to that is, look, we saw exceptional strength in the quarter on a number of fronts in terms of Tenable One's growth both as a percentage of product and growth overall, the -- and large enterprise traction, the 7-figure deals, the $0.5 million deals, all record numbers for us, the strength in federal. And I think candidly, just the competitiveness of the product, if you look products. If you look at our portfolio across the board, whether it's in identity, in OT, our capabilities in cloud security and our ability to differentiate both in core VM as well as in this unified platform sale, our confidence and the sales team's confidence in what they're seeing as has never been stronger. So that gives us confidence going into 2024. And like Steve said, we'll see how Q4 plays out and look forward to updating folks on the plan as we get into the Q1 call.

是的。我想我唯一要補充的是，看，我們在本季度看到了 Tenable One 在許多方面的非凡實力，無論是佔產品和整體增長的百分比，還是大型企業的吸引力， 7 位數的交易，50萬美元的交易，這些都是我們創紀錄的數字，聯邦的實力。坦白說，如果你看產品，那就是產品的競爭力。如果您全面審視我們的產品組合，無論是身分、OT、我們在雲端安全方面的能力，以及我們在核心虛擬機器以及統一平台銷售方面的差異化能力，我們和銷售團隊對以下方面的信心：他們看到了前所未有的強大。因此，這讓我們對進入 2024 年充滿信心。就像 Steve 所說，我們將看看第四季度的情況如何，並期待在第一季度電話會議時向人們通報該計劃的最新情況。

Next question comes from the line of Andrew Nowinski with Wells Fargo.

下一個問題來自富國銀行的安德魯‧諾溫斯基 (Andrew Nowinski)。

Great. So I was wondering on the mid-market softness, was there anything specific to any maybe sort of verticals within that mid-market or any regions that were particularly soft? Or was that just broad-based? And maybe like what percentage of your installed base or revenue is derived from that mid-market segment?

偉大的。所以我想知道中階市場的疲軟，是否有任何特定於中端市場或任何特別疲軟的地區的垂直產業？或者這只是基礎廣泛？也許您的安裝基數或收入中有多少百分比來自中階市場？

It's more broad-based in nature and approximately about 25% of our total sales as we've discussed before, is attributed to the mid-market and it appears that smaller-sized customers, specifically in the mid-market, are certainly feeling more of the impact of the macro, which tends to be fluid from quarter-to-quarter.

它本質上更廣泛，正如我們之前討論的，我們總銷售額的大約 25% 歸因於中端市場，而且看起來規模較小的客戶，特別是中端市場的客戶，肯定感覺更宏觀影響的影響，每季的影響往往是不穩定的。

Okay. And then I had a question on the larger customers, the 100,000 -- the customers that spend over $100,000, looks like you added 386 -- excuse me, 58 this quarter, which was down on a year-over-year basis. So I'm wondering, given that you have Tenable One, which I believe is a much higher price point than a larger -- presumably larger deal sizes, was there any softness there that may have caused your new logo adds of the large customers to decline on a year-over-year basis?

好的。然後我有一個關於大客戶的問題，即花費超過 100,000 美元的 100,000 名客戶，看起來您增加了 386 名，對不起，本季度增加了 58 名，同比下降。所以我想知道，考慮到你們有Tenable One，我認為它的價格點比更大的交易規模要高得多，可能是更大的交易規模，是否存在任何軟性可能導致您的新徽標增加了大客戶年減？

Yes. I guess I would just start off by saying, listen, any time you're in a tougher macro environment and I think what you're hearing consistently from us and other software companies is that new logo ads is typically weaker in tougher markets. That said, we're still adding more than 300-plus logos onto our enterprise platforms, still a solid number of 6-figure adds.

是的。我想我會先說，聽著，任何時候你處於更艱難的宏觀環境中，我認為你從我們和其他軟體公司那裡聽到的一致意見是，新標誌廣告在更艱難的市場中通常會更弱。也就是說，我們仍在企業平台上添加了 300 多個徽標，而且仍然是 6 位數的固定數量。

And on top of that record number of $7 million and $0.5 million plus deals. So we have strength in the more mature customer base, the larger enterprises that really value and understand security a little bit better. And solid performance even in the tougher mid-market.

除此之外，還創下了 700 萬美元和 50 萬美元以上的交易記錄。因此，我們在更成熟的客戶群、真正重視並更好地理解安全性的大型企業中擁有優勢。即使在情勢嚴峻的中端市場，也能維持穩定的表現。

Next question comes from the line of Brad Reback with Stifel.

下一個問題來自 Brad Reback 和 Stifel 的對話。

Amit, high-level question, given the breadth and depth of the product portfolio at this point and the vagaries of the mid-market which kind of is always that way up and down. What's the thought of pivoting the sales force to more of an upmarket focus?

阿米特，一個高層次的問題，考慮到目前產品組合的廣度和深度，以及中端市場的變幻莫測，這種變化總是這樣的。將銷售團隊轉向高端市場的想法是什麼？

Well, it's certainly something that we look at and try and provide careful balance around. And as you recall, we've got a real hybrid sales approach, where we've got inside sellers, which we think are cost effectively going after our mid-market customers. We're 100% dedicated to channel. We transact all of our business through channel partners, which also help us achieve scale and cost effectiveness into that mid-market. And then direct touch enterprise sales team working hand in glove with partners to get to those larger opportunities and larger enterprise customers.

嗯，這當然是我們關注並嘗試提供謹慎平衡的事情。正如您所記得的那樣，我們採用了真正的混合銷售方式，其中我們有內部賣家，我們認為這種方式可以有效地吸引我們的中端市場客戶。我們 100% 致力於通路。我們透過通路夥伴進行所有業務交易，這也幫助我們在中端市場實現規模化和成本效益。然後直接接觸企業銷售團隊與合作夥伴密切合作，以獲得更大的機會和更大的企業客戶。

So we look at and also operate on the e-commerce side for the higher-volume transactions. So we try and find the appropriate balance to have cost-effective leverage and opportunity because ours is a solution, which is probably applicable. So we'll continue to look at that going into next year, make sure that we're optimizing our go-to-market spend for the greatest return.

因此，我們著眼於電子商務方面並進行運營，以實現更高交易量。因此，我們嘗試找到適當的平衡點，以獲得具有成本效益的槓桿和機會，因為我們的解決方案可能是適用的。因此，我們將繼續關註明年的情況，確保我們優化市場支出以獲得最大回報。

Got it. And then given the valuation of the stock and the significant amount of free cash flow that you all are generating at this point, what's the Board's thought on share repurchase activity?

知道了。然後考慮到股票的估值以及你們此時產生的大量自由現金流，董事會對股票回購活動有何看法？

Well, I think there's a clear use of -- the good news is we're generating increasing levels of cash flow and we have confidence that we'll continue to drive higher levels of cash flow. I think the operating margins have expanded significantly over the years as have the free cash flow margins.

嗯，我認為有一個明顯的用途——好消息是我們正在產生越來越多的現金流，我們有信心繼續推動更高水準的現金流。我認為多年來營業利潤率和自由現金流利潤率都顯著擴大。

And in terms of use of cash, I would say the security market is very fragmented. Amit can comment further, but clearly, we're using cash to acquire strategic and accretive assets. We're going deeper and wider in cloud security, which is a major market opportunity for us. And then we'll continue to evaluate other uses of cash to provide better returns for shareholders.

就現金的使用而言，我認為證券市場非常分散。阿米特可以進一步評論，但顯然，我們正在使用現金來收購策略和增值資產。我們正在雲端安全領域走得更深入、更廣泛，這對我們來說是一個重要的市場機會。然後我們將繼續評估現金的其他用途，為股東提供更好的回報。

Next question comes from the line of Roger Boyd with UBS.

下一個問題來自瑞銀集團的羅傑·博伊德。

As the CNAPP platform gets larger, I wonder if you could provide any update on maybe where you are in terms of adoption of cloud security within the installed base? And then Amit, more of a high-level question but it feels like the industry has been talking about CNAPP consolidation for some time. And you talked to customers, and it still sounds like buyer behavior is skewing towards picking and choosing different point products and CSPM, et cetera. So I guess love to get your perspective on how you think the time line for like cloud security consolidation plays out?

隨著 CNAPP 平台變得越來越大，我想知道您是否可以提供有關您在安裝基礎中採用雲端安全的最新進展？然後是 Amit，這是一個更高層次的問題，但感覺業界談論 CNAPP 整合已經有一段時間了。與客戶交談後，聽起來買家的行為仍然傾向於挑選不同的單點產品和 CSPM 等。因此，我想了解您對雲端安全整合等時間軸的看法？

Yes. First of all, I'll start by saying we're seeing tremendous demand on the cloud security side. At this point, I'd say prior to acquisition, Tenable is already delivering cloud security capability to over 1,000 customers. And so we're seeing demand. We're seeing momentum and we continue to invest organically and inorganically in building out those capabilities.

是的。首先，我首先要說的是，我們看到了雲端安全的巨大需求。目前，我想說的是，在收購之前，Tenable 已經向 1,000 多個客戶提供雲端安全功能。所以我們看到了需求。我們看到了勢頭，並繼續進行有機和無機投資來建立這些能力。

Certainly, market-leading on the infrastructure's code side. I think Ermetic is the absolute market leader when it comes to cloud infrastructure and entitlement management. And so to your point earlier, even where other CSPM solutions have been deployed, Ermetic has shown the ability to sell alongside those products with their team functionality. That said, I do believe that we're going to see a lot of consolidation, both in security and specifically within cloud security because these capabilities really need to be tightly integrated to maximize value for customers because what you have in the cloud? How it's configured? How it's vulnerable? Who has access to those assets? What are the permissions and entitlements to those assets? What would it look like if any of those identities or assets were compromised? I think all of those data points are tightly intertwined both from a security and compliance perspective.

當然，在基礎設施的程式碼方面處於市場領先地位。我認為 Ermetic 在雲端基礎設施和權利管理方面是絕對的市場領導者。因此，正如您之前所說，即使已經部署了其他 CSPM 解決方案，Ermetic 也顯示出能夠透過其團隊功能與這些產品一起銷售。也就是說，我確實相信我們將看到大量的整合，無論是在安全方面，還是在雲端安全方面，因為這些功能確實需要緊密整合，以最大限度地為客戶創造價值，因為你在雲端中擁有什麼？它是如何配置的？怎麼會脆弱呢？誰有權使用這些資產？這些資產的權限和權利是什麼？如果這些身分或資產中的任何一個被洩露，會是什麼樣子？我認為從安全性和合規性的角度來看，所有這些數據點都緊密地交織在一起。

And I think that there's a very natural progression from point products in cloud unified CNAPP platforms. And I think that's what you're hearing from most of the market-leading cloud security vendors and certainly what Ermetic is bringing to the table for Tenable.

我認為雲端統一 CNAPP 平台中的點產品有一個非常自然的進展。我認為這就是您從大多數市場領先的雲端安全供應商那裡聽到的內容，當然也是 Ermetic 為 Tenable 帶來的內容。

Next question comes from the line of Gray Powell with BTIG.

下一個問題來自 Gray Powell 與 BTIG 的對話。

Great. So yes, maybe just kind of drill in on the Q4 outlook. I'd be curious, are you guys expecting a budget flush this year? And then just on a comparison basis, like how does the environment feel today versus this time last year? Is it better, same or worse in terms of just the visibility that you feel like you have?

偉大的。所以，是的，也許只是深入探討第四季的前景。我很好奇，你們預計今年的預算會增加嗎？然後再進行比較，例如今天的環境與去年這個時候相比感覺如何？就您感覺自己擁有的可見度而言，是更好、相同還是更差？

Yes, in terms of budget flush, there certainly -- if you look heading into Q4, we'd expect Q4 to be sequentially higher in terms of CCB on an absolute dollar basis relative to what we're providing today. So the fourth quarter tends to be seasonally strong for us. It can represent over 30% of our total sales. We do see budget flush. We would expect that in the fourth quarter. We do -- we are expecting some of the selling conditions that we experienced in the mid-market to persist. But overall, we feel good about the guidance that we're giving today.

是的，就預算充裕而言，當然 - 如果你看看第四季度，我們預計第四季度的 CCB 相對於我們今天提供的絕對美元基礎上會連續走高。因此，第四季對我們來說往往是季節性強勁的。它可以占我們總銷售額的30%以上。我們確實看到預算充足。我們預計第四季會出現這種情況。我們確實如此——我們預計我們在中端市場經歷的一些銷售狀況將持續下去。但總的來說，我們對今天提供的指導感到滿意。

And I think in terms of the comparison to last year, I think it's fair to say that this is a new budget cycle, a new fiscal year and new logos are tougher to transact in this environment. But we're also very pleased to see us demonstrate real momentum, not only with Tenable One, where it's growing over 100%, and we're seeing higher selling prices there but also really strength in large deals.

我認為，與去年相比，我認為可以公平地說，這是一個新的預算週期、新的財政年度和新的標誌在這種環境下更難處理。但我們也很高興看到我們展現出真正的勢頭，不僅是 Tenable One，其增長超過 100%，而且我們看到那裡的銷售價格更高，而且在大宗交易中也表現強勁。

As Amit commented earlier, we had a record number of 7-figure deals, also 6 -- $0.5 million deals and up. So the value that we deliver to our customers continues to grow in terms of importance and it's resulting in larger deals.

正如阿米特早些時候評論的那樣，我們的 7 位數交易數量創歷史新高，還有 600 至 50 萬美元及以上的交易。因此，我們為客戶提供的價值的重要性不斷增長，並帶來了更大的交易。

Yes, I guess the only other thing I would add to that is less on the macro and more on the competitiveness of product sets, whether it's on the OT side, our ability to win -- compete and win and deliver on cloud security on identity and the unification of these capabilities, new Tenable One, the sales and go-to-market teams have never had greater confidence in the products that we're bringing to the market and our ability to value differentiate from competition. So there's a lot of cost for optimism.

是的，我想我要補充的唯一一件事是少關注宏觀，多關注產品集的競爭力，無論是在 OT 方面，還是我們獲勝的能力——競爭、獲勝並提供身份雲安全性這些功能的統一、新的Tenable One、銷售和市場推廣團隊對我們推向市場的產品以及我們在競爭中脫穎而出的能力充滿了信心。因此，樂觀的代價是很大的。

Next question comes from the line of Brian Colley with Stephens Inc.

下一個問題來自 Stephens Inc. 的 Brian Colley。

So I wanted to drill down on the commentary around the mid-market. Could you just elaborate on whether you saw -- was it less new logos in the mid-market? Or was it more related to expansion business? And then -- is part of this due to increased competition in the mid-market?

所以我想深入研究中端市場的評論。您能否詳細說明您是否看到——中端市場的新標誌是否較少？還是與擴張業務更相關？那麼，這是否是由於中階市場競爭加劇所造成的？

Yes. Great question. I would say it is absolutely on the new logo side. We continue to see strength in renewal rates. I think Steve called out the net dollar renewal rates remain consistent and healthy, both in enterprise and mid-market. On the competitive dynamics, competitive landscape, we just continue to see strength and improvement. I think this quarter was the first significant step above previous quarters in terms of competitive win rates and close rates.

是的。很好的問題。我想說這絕對是在新標誌方面。我們繼續看到續訂率強勁。我認為史蒂夫指出，無論是在企業還是中端市場，淨美元續約率都保持一致和健康。在競爭動態、競爭格局上，我們不斷看到實力和進步。我認為本季在競爭獲勝率和成交率方面比前幾個季度邁出了重要的一步。

So we feel really good about where we're at competitively, from a product perspective as well as our ability to execute just as we said, more difficult to transact back new logos in the mid-market in this economy.

因此，從產品角度以及我們的執行能力來看，我們對自己的競爭地位感到非常滿意，正如我們所說，在當前經濟狀況下，在中端市場交易新商標變得更加困難。

Got it. Okay. That's helpful. And then one for you, Steve. Apologies if I missed it but did you disclose the statistic on what Tenable One represented as a percentage of new business in total sales?

知道了。好的。這很有幫助。然後給你一份，史蒂夫。如果我錯過了，抱歉，但您是否披露了 Tenable One 在新業務佔總銷售額中所佔百分比的統計數據？

I did, 20% approximately of total new enterprise sales.

我做到了，大約佔新企業總銷售額的 20%。

Next question comes from the line of Garrett Burkam -- Jonathan Ho with William Blair.

下一個問題來自加勒特·伯卡姆（Garrett Burkam）——喬納森·何（Jonathan Ho）和威廉·布萊爾（William Blair）。

This is Garrett Burkam on for Jonathan Ho. So you noted success with selling Tenable One as a strength in the quarter. So how has pricing been for those specific deals? Have you been able to realize as much pricing as you anticipated? Or has there been a lot of discounting involved? I would just like to get some color there.

我是加勒特·伯卡姆 (Garrett Burkam) 為喬納森·何 (Jonathan Ho) 發言。因此，您指出銷售 Tenable One 的成功是本季的一項優勢。那麼這些特定交易的定價如何？您是否能夠實現與預期一樣多的定價？還是有很多折扣？我只是想在那裡得到一些顏色。

No change in pricing dynamics. We continue to see strong traction with Tenable One. Selling prices there are 70% higher selling the platform in comparison to selling stand-alone VM. We have an asset-based pricing model with Tenable One. And because Tenable One not only includes VM but also newer asset types. We are covering more assets within our customers' environment. So that's what's driving the selling price is higher, not only ability to capture more of those systems and more of those assets but also delivering more value, greater insight. So the price per asset consequently is higher, but no changes in pricing.

定價動態沒有變化。我們繼續看到 Tenable One 的強大吸引力。與銷售獨立 VM 相比，銷售該平台的價格高出 70%。我們與 Tenable One 建立了基於資產的定價模式。因為 Tenable One 不僅包括虛擬機，還包括更新的資產類型。我們正在覆蓋客戶環境中的更多資產。因此，這就是推動售價更高的原因，不僅是因為能夠捕捉更多的系統和資產，而且還能夠提供更多的價值和更深入的洞察力。因此，每項資產的價格較高，但定價沒有變動。

Next question comes from the line of Matthew Calitri with Needham & Co.

下一個問題來自 Matthew Calitri 與 Needham & Co. 的對話。

This is Matt Calitri on from Mike Cikos over at Needham. I wanted to ask about how pipeline looked in Q3 both in comparison to the first 2 quarters, which I believe are both record quarters and also in terms of linearity throughout the quarter?

我是來自 Needham 的 Mike Cikos 的 Matt Calitri。我想問一下，與前兩個季度相比，第三季度的管道情況如何，我認為前兩個季度都是創紀錄的季度，而且整個季度的線性度也很高？

Yes. First I would say top of the funnel remains strong for us. And as we've stated on prior calls, we continue to generate healthy levels of demand and the size and the shape of those pipelines are very strong. I think where we're seeing and what we specifically discussed in the call as relates to the mid-market is the conversion rate is the bottom of the funnel. And the biggest factor here is no decision. We're not seeing any changes in pricing or competitive dynamics. We're confident we'll continue to be able to close deals at a very high rate. In this market though, the macro impacts some customers more so than others. And it's fluid from 1 quarter to the next.

是的。首先，我想說的是，漏斗頂部對我們來說仍然很強大。正如我們在之前的電話會議中所說的那樣，我們繼續產生健康的需求水平，並且這些管道的規模和形狀都非常強勁。我認為我們所看到的以及我們在電話會議中具體討論的與中端市場相關的內容是轉換率是漏斗的底部。這裡最大的因素是沒有決定。我們沒有看到定價或競爭動態發生任何變化。我們有信心繼續以非常高的速度完成交易。但在這個市場中，宏觀經濟對某些客戶的影響比其他客戶更大。而且從一個季度到下一個季度都是不穩定的。

So the good news is that demand, we believe, remains healthy. We have adequate pipeline coverage as we look into the fourth quarter, now that we're 1 month in, we take it all into consideration in terms of flow. We're off to a strong start here in the fourth quarter. But the quarter is back-end loaded, just like other software companies, it's not unusual for us to close 50%, 60% or more of our total new enterprise sales in the last month, and a lot of that can come in the last couple of weeks of the quarter. But overall feeling good as we head into Q4.

因此，好消息是我們認為需求仍然健康。當我們展望第四季度時，我們有足夠的管道覆蓋範圍，現在已經過去 1 個月了，我們在流量方面將其全部考慮在內。我們在第四季有了一個強勁的開局。但這個季度是後端加載的，就像其他軟體公司一樣，我們在上個月完成新企業總銷售額的50%、60% 或更多，這並不罕見，其中許多可能會在上個月出現本季的幾週。但當我們進入第四季度時，總體感覺良好。

Awesome. And then despite macro pressures you mentioned, net expansion rate was steady in the quarter after decreasing for 2 in a row. Is it fair to think that this has stabilized at this level? Or how should we think about that going forward?

驚人的。然後，儘管有你提到的宏觀壓力，但本季淨擴張率在連續兩個下降後保持穩定。認為這種情況已經穩定在這個水準是否公平？或者我們該如何思考未來的發展？

Yes. Well, the net dollar expansion rate was 111%. So consistent with what we saw in the prior quarter. Keep in mind, the NDRR is a -- is an LTM number. It reflects the culmination of sales and upgrades over the prior quarters. And I think it's fair to say that the market was a little stronger last year than it is this year. So we're certainly encouraged to see it continue to be at 111%. There could be further moderation in the rate. It could also increase. We don't optimize the business for any one metric. I think that's important to note. And pipeline opportunities in any given quarter can fluctuate between new logos and upsell opportunities.

是的。嗯，美元淨擴張率為111%。與我們上一季看到的情況一致。請記住，NDRR 是一個 LTM 數字。它反映了前幾個季度銷售和升級的頂峰。我認為可以公平地說，去年的市場比今年稍強。因此，看到這一比例繼續保持在 111%，我們當然感到鼓舞。利率可能會進一步放緩。它還可能會增加。我們不會針對任何一項指標來優化業務。我認為這一點值得注意。任何特定季度的管道機會都可能在新徽標和追加銷售機會之間波動。

So certainly, there can be some variability here but we wanted to provide transparency and we report it quarterly. And I think that's important. So the good news is gross -- the [renewals] themselves are very strong. And when customers renew, they expand more, and we expect continued expansion as we move along here, not only for Q4 but also for the full year.

當然，這裡可能存在一些變化，但我們希望提供透明度，並且我們每季報告一次。我認為這很重要。因此，好消息是巨大的——[續訂]本身非常強勁。當客戶續訂時，他們會擴大規模，我們預計，隨著我們的發展，我們將繼續擴大規模，不僅是第四季度，而且是全年。

Mr. Calitri?

卡利特里先生？

Yes, great.

對，很好。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。