We’re entering our tenth year as a company. A decade ago, the very idea of Tanium was impossible for most enterprise IT teams to imagine: a platform that could provide accurate and up-to-date information about the state of every endpoint on a network in seconds, across the largest networks, up to many millions of endpoints.
Years later, when we deployed our beta code on the network of a large financial services company, we knew we had done something incredible when they queried the system to ask how many endpoints were on the network. That is a fundamental question for IT, and we were able to deliver a complete answer in three seconds. Until that point, they were unsure how many devices they had at all (it turns out more than 500,000!), and the best guess came from a system that took two weeks to gather data each time.
Fast forward to today. We’ve emerged from another strong year of growth and product development, and I’m thrilled to welcome former Frontier Communications CEO Maggie Wilderotter and current Aon Chief Security Officer Anthony Belfiore to our Board to help position us for the next 10 years.
Maggie brings unmatched expertise in scaling companies from hyper-growth startup to major industry player. Under her leadership, Frontier went from a regional company with revenues of less than $1 billion to a national broadband company with revenues in excess of $10 billion. She has a deep interest in security, having served on President Obama’s Commission on Enhancing National Cybersecurity as well as Vice Chair and then Chair of the President‘s National Security Telecommunications Advisory Committee on Cybersecurity for Critical Infrastructure in the United States from 2013 through 2016.
I first met Anthony more than six years ago while he was at JPMorgan Chase leading one of biggest security teams on Wall Street. He has since deployed Tanium at JPMorgan Chase, First Data, and most recently, Aon, one of the largest insurance/reinsurance brokers in the world, bringing an unparalleled customer point-of-view to our Board. Together, Anthony and Maggie will be essential to helping us achieve our extraordinarily ambitious goals in the coming years.
Our customers are at the heart of everything we do. We added almost 100 new large enterprise customers in our 2016 fiscal year, proving we’ve become an essential asset in helping the world’s largest companies and government organizations solve critical business challenges. Here are additional highlights from the year:
- Deals over $1 million and $5 million are up significantly year-over-year.
- Our net renewal rate is over 175% through Q3 of our fiscal year 2016.
- Last year, we started migrating from perpetual licensing to recurring subscription revenue. Tanium’s subscription billings nearly doubled year-over-year and our recurring billings were nearly 80% of our total billings in fiscal year 2016 .
- Through all that growth and business model change, operating cash flow has remained positive, with more than $300 million in cash, investments, and accounts receivable, all while growing our team by 38%—now 473 strong—and extending our platform capabilities with four new product modules. We expect a similar speed of product development this year and have already launched a new module in 2017, Tanium Integrity Monitor.
Our key priorities this year are threefold: deepen our service offerings in both security and IT operations; continue our international growth; and expand across industries. We’re doubling down in existing industry sectors such as financial services, retail, and government, while making headway in newer sectors, including manufacturing and healthcare.
To help us expand our international footprint, I’m thrilled to welcome Matt Ellard to Tanium as Vice President of Sales, EMEA, and to announce Scott Rubin, formerly our Chief Communications Officer, as Chief Marketing Officer. Matt will lead our international expansion in the UK, Germany, and elsewhere in Europe and the Middle East. Scott is charged with growing our pipeline and elevating the brand globally. One of our earliest sales leaders, Tyker Fagg, was promoted to Vice President of Sales, North America, where he’ll oversee a growing sales team focused on domestic expansion into new sectors.
I genuinely couldn’t be more proud of our team or more ready for the next phase of Tanium. From day one, our mission has been to meet the enterprise’s need for a revolutionary platform to bring endpoint security and management into the 21st century. With this team and this platform, we’re one step closer to becoming an essential element in every enterprise IT portfolio.
Editor’s note: This blog was updated on February 23 to clarify the time frame for Tanium’s net renewal rate. This blog was updated on March 1 with new financial information.