Updated Guidance and Outlook
Q: Has the spending environment changed since last guidance?
A: The spending environment has improved, and we are providing a stronger outlook for both Q2 and the full year compared to 90 days ago. " We beat revenue and CCB expectations in Q1 and are flowing through the beat for both metrics. " Pipeline remains healthy, with strength in the mid-market, public sector, and cloud security. "

Net Retention Rate Decline
Q: Why did net retention rate dip to 109%?
A: The net retention rate dipped to 109% this quarter due to a mix shift toward new business over expansion. " " We added 410 new Tenable One platform customers, and year-over-year ACV from newly acquired customers grew by 30%. " This focus on acquiring new customers is positive but can impact the expansion rate. " "

Second Half Growth Expectations
Q: What needs to improve for second half acceleration?
A: We expect higher growth in the second half driven by the integration of the Ermetic acquisition, increased contributions from cloud security, and a strong federal pipeline. " We are building pipeline opportunities and anticipate closing deals related to our expanded CNAPP offering. "

Ermetic Contribution and Cloud Security
Q: How will Ermetic impact revenue and cloud security growth?
A: Ermetic contributed minimally in Q1, as expected. " We anticipate greater contributions in the second half of the year as we integrate the product and build pipeline opportunities. " Our outlook includes an expected 2-point incremental CCB growth from Ermetic. "

Competitive Dynamics in Vulnerability Management
Q: How are competitive dynamics affecting vulnerability management?
A: The competitive environment is favorable, with our close rates and win rates remaining very high. " We are a clear leader in VM, adding over 400 new customers per quarter. " Our largest deal this quarter was a 7-figure win where we displaced an incumbent VM vendor. "

Federal Sector Growth
Q: What drove federal demand, and what's the outlook?
A: Federal demand was driven by defense and critical infrastructure, with strong traction in state, local, and higher education sectors. " The overall spending environment in federal is very strong, and we expect robust performance heading into the federal fiscal year-end in September. "

Tenable One Growth and Modules Driving Sales
Q: Which Tenable One modules are most popular?
A: Tenable One represented 26% of total new sales, up from 22% last quarter. " Customers are gravitating toward cloud security, OT security, and web application modules. " Our largest win was a 7-figure deal where cloud security was the entry point, and we also displaced an incumbent VM vendor and sold OT security. "

Operational Technology (OT) Security Trends
Q: What's changing in the OT security market?
A: CISOs are increasingly responsible for OT security, including manufacturing, industrial controls, and building management systems. " This shift is creating significant opportunities in the OT space as organizations seek visibility across cloud, identity, and OT environments. "

AI Capabilities and Product Strategy
Q: How is AI being integrated into products?
A: We are embedding AI capabilities across our entire portfolio, not just the top-tier Tenable One offering. " " AI assists in areas like attack path analytics, prioritization, explainability, and analytics. " " This enhances our ability to help customers understand risk and drive remediation. "

Shift Toward New Business
Q: Are sales reps successfully selling the entire portfolio?
A: Yes, most of our sales reps are successfully selling the combined offering, leading with Tenable One. " Half of our new logo six-figure deals are coming through Tenable One. " We are becoming less reliant on overlay reps as our products become more mainstream. "

New Logos: Greenfield vs. Displacement
Q: Are new customers mostly greenfield or displacements?
A: Approximately one-third of new logos are greenfield opportunities, with customers having no prior enterprise-wide VM solution. " The rest involve displacing incumbents, and we continue to have a high win rate against competitors. "

Cloud Security Contribution
Q: Can you quantify cloud security's contribution?
A: While we do not disclose bookings or CCB by product, Tenable One accounts for nearly half of the 50% of new sales coming from exposure management solutions. " We expect greater contributions from cloud security in the second half, related to the Ermetic acquisition. "

Impact of Specific Vulnerabilities
Q: Did the Ivanti vulnerability drive federal demand?
A: Such vulnerabilities do not have a significant impact in the current quarter. " The federal demand was driven more by defense and critical infrastructure needs. "

Outlook for Net Retention Rate
Q: How should we think about NRR going forward?
A: Our outlook reflects higher growth in the second half, which would result in improvement in at least one of our key performance indicators, including expansion rate. " We expect fluctuations but are confident in our overall growth trajectory. "