Tenable Announces Fourth Quarter and Full Year 2024 Financial Results
Tenable (TENB) reported strong Q4 and full-year 2024 financial results. Q4 revenue reached $235.7 million, up 11% year-over-year, while full-year revenue grew 13% to $900.0 million. Q4 calculated current billings increased 11% to $302.2 million.
The company achieved significant improvements in profitability, with Q4 GAAP income from operations at $13.0 million compared to a loss of $14.3 million in Q4 2023. Full-year unlevered free cash flow was $237.8 million, with net cash from operations at $217.5 million.
Notable achievements include adding 485 new enterprise platform customers and 135 net new six-figure customers. The company announced plans to acquire Vulcan Cyber and launched Tenable Patch Management. For 2025, Tenable projects revenue between $971.0-981.0 million and calculated current billings of $1.040-1.055 billion.
Tenable (TENB) ha riportato risultati finanziari solidi per il quarto trimestre e per l'intero anno 2024. I ricavi del Q4 hanno raggiunto 235,7 milioni di dollari, con un incremento dell'11% rispetto all'anno precedente, mentre i ricavi dell'intero anno sono cresciuti del 13%, arrivando a 900,0 milioni di dollari. I ricavi correnti calcolati del Q4 sono aumentati dell'11% a 302,2 milioni di dollari.
La società ha raggiunto miglioramenti significativi nella redditività, con un reddito operativo GAAP per il Q4 di 13,0 milioni di dollari, rispetto a una perdita di 14,3 milioni di dollari nel Q4 2023. Il flusso di cassa libero non indebitato per l'intero anno è stato di 237,8 milioni di dollari, con un cash flow netto dalle operazioni di 217,5 milioni di dollari.
Tra i risultati degni di nota c'è l'aggiunta di 485 nuovi clienti della piattaforma enterprise e 135 nuovi clienti con contratti a sei cifre. L'azienda ha annunciato piani per acquisire Vulcan Cyber e ha lanciato Tenable Patch Management. Per il 2025, Tenable prevede ricavi tra 971,0 e 981,0 milioni di dollari e ricavi correnti calcolati tra 1,040 e 1,055 miliardi di dollari.
Tenable (TENB) reportó resultados financieros sólidos para el cuarto trimestre y el año completo 2024. Los ingresos del Q4 alcanzaron 235,7 millones de dólares, un aumento del 11% interanual, mientras que los ingresos del año completo crecieron un 13% hasta 900,0 millones de dólares. Las facturaciones corrientes calculadas del Q4 aumentaron un 11% a 302,2 millones de dólares.
La compañía logró mejoras significativas en la rentabilidad, con un ingreso operativo GAAP del Q4 de 13,0 millones de dólares en comparación con una pérdida de 14,3 millones de dólares en el Q4 de 2023. El flujo de caja libre sin apalancamiento del año completo fue de 237,8 millones de dólares, con un efectivo neto de las operaciones de 217,5 millones de dólares.
Logros notables incluyen la incorporación de 485 nuevos clientes de plataformas empresariales y 135 nuevos clientes con contratos de seis cifras. La empresa anunció planes para adquirir Vulcan Cyber y lanzó Tenable Patch Management. Para 2025, Tenable proyecta ingresos entre 971,0 y 981,0 millones de dólares y facturaciones corrientes calculadas entre 1.040 y 1.055 millones de dólares.
테너블 (TENB)은 2024년 4분기 및 연간 재무 결과가 우수하다고 보고했습니다. 4분기 수익은 2억 3,570만 달러에 도달하여 전년 대비 11% 증가했으며, 연간 수익은 13% 증가하여 9억 달러에 도달했습니다. 4분기 계산된 현재 청구액은 11% 증가하여 3억 2,220만 달러에 이르렀습니다.
회사는 4분기 GAAP 운영 소득이 1,300만 달러로, 2023년 4분기에는 1,430만 달러의 손실과 비교하여 수익성을 크게 개선했습니다. 연간 레버리지 없는 자유 현금 흐름은 2억 3,780만 달러였으며, 운영에서의 순 현금은 2억 1,750만 달러였습니다.
주요 성과로는 485명의 새로운 기업 플랫폼 고객과 135명의 새로운 6자릿수 고객 추가가 포함됩니다. 회사는 벌컨 사이버를 인수할 계획을 발표하고 테너블 패치 관리 시스템을 출시했습니다. 2025년을 대상으로 테너블은 9억 7100만 달러에서 9억 8100만 달러의 수익과 10억 4000만 달러에서 10억 5500만 달러의 계산된 현재 청구액을 예상하고 있습니다.
Tenable (TENB) a annoncé des résultats financiers solides pour le quatrième trimestre et pour l'année 2024 dans son ensemble. Les revenus du Q4 ont atteint 235,7 millions de dollars, en hausse de 11 % par rapport à l'année précédente, tandis que les revenus de l'année complète ont augmenté de 13 % pour atteindre 900,0 millions de dollars. Les facturations actuelles calculées du Q4 ont augmenté de 11 % pour atteindre 302,2 millions de dollars.
L'entreprise a réalisé des améliorations significatives de sa rentabilité, avec un revenu opérationnel GAAP de 13,0 millions de dollars pour le Q4, comparé à une perte de 14,3 millions de dollars au Q4 2023. Le flux de trésorerie libre non endetté pour l'année entière était de 237,8 millions de dollars, avec un flux de trésorerie net provenant des opérations de 217,5 millions de dollars.
Les réalisations notables incluent l'ajout de 485 nouveaux clients de la plateforme d'entreprise et 135 nouveaux clients à six chiffres. La société a annoncé des plans pour acquérir Vulcan Cyber et a lancé Tenable Patch Management. Pour 2025, Tenable projette des revenus compris entre 971,0 et 981,0 millions de dollars et des facturations actuelles calculées entre 1,040 et 1,055 milliards de dollars.
Tenable (TENB) berichtete über starke Finanzzahlen für das vierte Quartal und das gesamte Jahr 2024. Der Umsatz im Q4 erreichte 235,7 Millionen US-Dollar, was einem Anstieg von 11 % im Vergleich zum Vorjahr entspricht, während der Gesamtumsatz um 13 % auf 900,0 Millionen US-Dollar wuchs. Die berechneten aktuellen Rechnungsstellungen im Q4 stiegen um 11 % auf 302,2 Millionen US-Dollar.
Das Unternehmen erzielte bedeutende Verbesserungen in der Rentabilität, mit einem GAAP-Betriebsgewinn im Q4 von 13,0 Millionen US-Dollar im Vergleich zu einem Verlust von 14,3 Millionen US-Dollar im Q4 2023. Der nicht fremdfinanzierte freie Cashflow für das gesamte Jahr betrug 237,8 Millionen US-Dollar, mit einem Nettokassenfluss aus dem Betrieb von 217,5 Millionen US-Dollar.
Bemerkenswerte Erfolge sind die Gewinnung von 485 neuen Unternehmenskunden und 135 neuen Kunden mit sechsstelligen Verträgen. Das Unternehmen gab Pläne zur Akquisition von Vulcan Cyber bekannt und führte das Tenable Patch Management ein. Für 2025 prognostiziert Tenable Umsätze zwischen 971,0 und 981,0 Millionen US-Dollar und berechneten aktuellen Rechnungsstellungen zwischen 1.040 und 1.055 Millionen US-Dollar.
- Q4 revenue increased 11% YoY to $235.7M
- Full-year revenue grew 13% to $900.0M
- Q4 GAAP income from operations of $13.0M vs loss of $14.3M in Q4 2023
- Added 485 new enterprise platform customers
- Unlevered free cash flow improved to $237.8M from $175.4M in 2023
- Strong cash position with $577.2M in cash and equivalents
- Full-year GAAP net loss of $36.3M
- GAAP net loss per share of $0.31
Insights
Tenable's Q4 and FY2024 results reveal a compelling transformation in operational efficiency and market positioning. The company has executed a remarkable shift from losses to profitability, with Q4 GAAP income from operations reaching
Customer acquisition metrics are particularly noteworthy, with 485 new enterprise platform customers and 135 net new six-figure customers added. This high-value customer addition trend, especially in the six-figure segment, indicates strong enterprise penetration and validates Tenable's premium positioning in the exposure management market.
The company's cash generation capabilities have strengthened substantially, with unlevered free cash flow increasing to
Looking ahead, the FY2025 guidance suggests continued momentum with projected revenue of
Tenable's strategic evolution in the exposure management space is yielding significant results, particularly through their cloud-first approach and Tenable One platform. The strong traction in six-figure deals, predominantly driven by Tenable One, validates their platform consolidation strategy in a market where organizations are seeking unified security solutions.
The launch of Tenable Patch Management and enhanced Vulnerability Intelligence integration demonstrates the company's commitment to autonomous security operations, addressing the critical need for automated remediation in complex cloud environments. These innovations are particularly timely given the findings from their 2024 Cloud Risk Report, which highlights escalating challenges in cloud security.
The pending Vulcan Cyber acquisition represents a strategic move to enhance the company's exposure management capabilities. This acquisition should strengthen Tenable's competitive position by adding advanced risk prioritization and remediation orchestration capabilities, addressing a critical gap in many organizations' security workflows.
The strong customer metrics, particularly the addition of 135 new six-figure customers, suggest that enterprises are increasingly viewing Tenable as a strategic security partner rather than just a tool provider. This evolution in market perception, combined with their expanding product portfolio, positions Tenable favorably in the rapidly growing exposure management market.
- Fourth quarter revenue of
$235.7 million , up11% year-over-year; full year revenue of$900.0 million , up13% year-over-year. - Fourth quarter calculated current billings of
$302.2 million , up11% year-over-year; full year calculated current billings of$969.5 million , up11% year-over-year. - Full year net cash provided by operating activities of
$217.5 million ; full year unlevered free cash flow of$237.8 million .
COLUMBIA, Md., Feb. 05, 2025 (GLOBE NEWSWIRE) -- Tenable Holdings, Inc. (“Tenable”) (Nasdaq: TENB), the exposure management company, today announced financial results for the quarter and year ended December 31, 2024.
“We are very pleased with the results for the quarter as we delivered better-than-expected CCB, revenue, operating income, EPS and unlevered free cash flow,” said Steve Vintz, Co-CEO and CFO of Tenable. “Our outperformance was driven by strong traction in cloud and Tenable One as customers look to secure cloud and get a holistic view of their environment.”
“We continue to drive incredible value for our customers resulting in a strong quarter for six-figure additions, many of which were Tenable One deals,” said Mark Thurmond, Co-CEO and COO of Tenable. “We are winning marquee, large deals with our exposure management products and are laser focused on continuing to deliver on our customer-driven roadmap.”
Fourth Quarter 2024 Financial Highlights
- Revenue was
$235.7 million , an11% increase year-over-year. - Calculated current billings was
$302.2 million , an11% increase year-over-year. - GAAP income from operations was
$13.0 million , compared to a loss of$14.3 million in the fourth quarter of 2023. - Non-GAAP income from operations was
$59.4 million , compared to$36.1 million in the fourth quarter of 2023. - GAAP net income was
$1.9 million , compared to a loss of$21.6 million in the fourth quarter of 2023. - GAAP diluted earnings per share was
$0.02 , compared to a loss per share of$0.19 in the fourth quarter of 2023. - Non-GAAP net income was
$50.7 million , compared to$30.2 million in the fourth quarter of 2023. - Non-GAAP diluted earnings per share was
$0.41 , compared to$0.25 in the fourth quarter of 2023. - Net cash provided by operating activities was
$81.1 million , compared to$38.5 million in the fourth quarter of 2023. - Unlevered free cash flow was
$85.7 million , compared to$43.3 million in the fourth quarter of 2023. - Repurchased 1.2 million shares of our common stock for
$50.0 million .
Full Year 2024 Financial Highlights
- Revenue was
$900.0 million , a13% increase year-over-year. - Calculated current billings was
$969.5 million , an11% increase year-over-year. - GAAP loss from operations was
$6.9 million , compared to$52.2 million in 2023. - Non-GAAP income from operations was
$184.1 million , compared to$121.0 million in 2023. - GAAP net loss was
$36.3 million , compared to$78.3 million in 2023. - GAAP net loss per share was
$0.31 , compared to$0.68 in 2023. - Non-GAAP net income was
$158.6 million , compared to$97.2 million in 2023. - Non-GAAP diluted earnings per share was
$1.29 , compared to$0.80 in 2023. - Cash and cash equivalents and short-term investments were
$577.2 million at December 31, 2024, compared to$474.0 million at December 31, 2023. - Net cash provided by operating activities was
$217.5 million , compared to$149.9 million in 2023. - Unlevered free cash flow was
$237.8 million , compared to$175.4 million in 2023. - Repurchased 2.3 million shares of our common stock for
$100.0 million .
Recent Business Highlights
- Added 485 new enterprise platform customers and 135 net new six-figure customers.
- Announced our intent to acquire exposure management company Vulcan Cyber Ltd., whose capabilities will augment our industry-leading Exposure Management platform, adding enhanced visibility, extended third-party data flows, superior risk prioritization, and optimized remediation.
- Launched Tenable Patch Management, an autonomous patch management solution built to quickly and effectively close vulnerability exposures.
- Integrated Tenable Vulnerability Intelligence into Tenable Security Center and enhanced the solution’s risk prioritization and web application scanning features to streamline vulnerability analysis and response.
- Published the 2024 Tenable Cloud Risk Report examining the critical risks at play in modern cloud environments. The report reflects findings by the Tenable Cloud Research team based on telemetry from millions of cloud resources across multiple public cloud repositories.
Financial Outlook
Our financial outlook excludes the impact of the potential acquisition of Vulcan Cyber, which we expect to close shortly.
For the first quarter of 2025, we currently expect:
- Revenue in the range of
$232.0 million to$234.0 million . - Non-GAAP income from operations in the range of
$42.0 million to$44.0 million . - Non-GAAP net income in the range of
$35.0 million to$37.0 million , assuming interest income of$5.2 million , interest expense of$7.0 million and a provision for income taxes of$3.6 million . - Non-GAAP diluted earnings per share in the range of
$0.28 t o$0.30 . - 124.0 million diluted weighted average shares outstanding.
For the year ending December 31, 2025, we currently expect:
- Calculated current billings in the range of
$1.04 0 billion to$1.05 5 billion. - Revenue in the range of
$971.0 million to$981.0 million . - Non-GAAP income from operations in the range of
$213.0 million to$223.0 million . - Non-GAAP net income in the range of
$189.0 million to$199.0 million , assuming interest income of$21.0 million , interest expense of$28.3 million and a provision for income taxes of$13.4 million . - Non-GAAP diluted earnings per share in the range of
$1.52 t o$1.60 . - 124.5 million diluted weighted average shares outstanding.
- Unlevered free cash flow in the range of
$285.0 million to$295.0 million .
Conference Call Information
Tenable will host a conference call today, February 5, 2025, at 4:30 p.m. Eastern Time to discuss its financial results. The conference call can be accessed at 877-407-9716 (U.S.) and 201-493-6779 (international). A live webcast of the event will be available on the Tenable Investor Relations website at https://investors.tenable.com. An archived replay of the live broadcast will be available on the Investor Relations page of the website following the call.
About Tenable
Tenable® is the exposure management company, exposing and closing the cybersecurity gaps that erode business value, reputation and trust. The company’s AI-powered exposure management platform radically unifies security visibility, insight and action across the attack surface, equipping modern organizations to protect against attacks from IT infrastructure to cloud environments to critical infrastructure and everywhere in between. By protecting enterprises from security exposure, Tenable reduces business risk for approximately 44,000 customers around the globe. Learn more at tenable.com.
Contact Information
Investor Relations
investors@tenable.com
Media Relations
tenablepr@tenable.com
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, including statements regarding our future results of operations and financial position, our platform's ability to help protect enterprises from security exposure and streamline vulnerability analysis and response, business strategy and plans and objectives for future operations, are forward-looking statements and represent our views as of the date of this press release. The words “anticipate,” "believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of assumptions and risks and uncertainties, many of which involve factors or circumstances that are beyond our control that could affect our financial results. These risks and uncertainties are detailed in the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 and other filings that we make from time to time with the SEC, which are available on the SEC's website at sec.gov. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in any forward-looking statements. Except as required by law, we are under no obligation to update these forward-looking statements subsequent to the date of this press release, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance the overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important metrics used by management for financial and operational decision-making. We include these non-GAAP financial measures to present our financial performance using a management view and because we believe that these measures provide an additional comparison of our core financial performance over multiple periods with other companies in our industry.
Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.
Calculated Current Billings: We define calculated current billings, a non-GAAP financial measure, as total revenue recognized in a period plus the change in current deferred revenue in the corresponding period. We believe that calculated current billings is a key metric to measure our periodic performance. Given that most of our customers pay in advance (including multi-year contracts), but we generally recognize the related revenue ratably over time, we use calculated current billings to measure and monitor our ability to provide our business with the working capital generated by upfront payments from our customers. We believe that calculated current billings, which excludes deferred revenue for periods beyond twelve months in a customer’s contractual term, more closely correlates with annual contract value and that the variability in total billings, depending on the timing of large multi-year contracts and the preference for annual billing versus multi-year upfront billing, may distort growth in one period over another.
Free Cash Flow and Unlevered Free Cash Flow: We define free cash flow, a non-GAAP financial measure, as net cash provided by operating activities less purchases of property and equipment and capitalized software development costs. We believe free cash flow is an important liquidity measure of the cash that is available (if any), after purchases of property and equipment and capitalized software development costs, for investment in our business and to make acquisitions. We believe that free cash flow is useful as a liquidity measure because it measures our ability to generate cash. We define unlevered free cash flow as free cash flow plus cash paid for interest and other financing costs. We believe unlevered free cash flow is useful as a liquidity measure as it measures the cash that is available to invest in our business and meet our current debt obligations and future financing needs. However, given our debt obligations, non-cancelable commitments and other contractual obligations, unlevered free cash flow does not represent residual cash flow available for discretionary expenses.
Non-GAAP Income from Operations and Non-GAAP Operating Margin: We define these non-GAAP financial measures as their respective GAAP measures, excluding the effect of stock-based compensation, acquisition-related expenses, restructuring expenses, costs related to the intra-entity asset transfers resulting from the internal restructuring of legal entities, and amortization of acquired intangible assets. Acquisition-related expenses include transaction and integration expenses, as well as costs related to the intercompany transfer of acquired intellectual property. Restructuring expenses include non-ordinary course severance, employee related benefits, and other charges to reorganize business operations. We believe that the exclusion of these expenses provides for a useful comparison of our operating results to prior periods and to our peer companies, which commonly exclude restructuring expenses.
Non-GAAP Net Income and Non-GAAP Earnings Per Share: We define non-GAAP net income as GAAP net income (loss), excluding the effect of stock-based compensation, acquisition-related expenses, restructuring expenses and amortization of acquired intangible assets, including the applicable tax impacts. In addition, we exclude the tax impact and related costs of intra-entity asset transfers resulting from the internal restructuring of legal entities as well as deferred income tax benefits recognized in connection with acquisitions. We use non-GAAP net income to calculate non-GAAP earnings per share.
Non-GAAP Gross Profit and Non-GAAP Gross Margin: We define non-GAAP gross profit as GAAP gross profit, excluding the effect of stock-based compensation and amortization of acquired intangible assets. Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of revenue.
Non-GAAP Sales and Marketing Expense, Non-GAAP Research and Development Expense and Non-GAAP General and Administrative Expense: We define these non-GAAP measures as their respective GAAP measures, excluding stock-based compensation, acquisition-related expenses and costs related to intra-entity asset transfers resulting from the internal restructuring of legal entities.
| TENABLE HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| (in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Revenue | $ | 235,731 | $ | 213,306 | $ | 900,021 | $ | 798,710 | |||||||
| Cost of revenue(1) | 51,439 | 48,803 | 199,668 | 183,577 | |||||||||||
| Gross profit | 184,292 | 164,503 | 700,353 | 615,133 | |||||||||||
| Operating expenses: | |||||||||||||||
| Sales and marketing(1) | 95,348 | 103,700 | 395,385 | 393,450 | |||||||||||
| Research and development(1) | 44,728 | 40,083 | 181,624 | 153,163 | |||||||||||
| General and administrative(1) | 31,241 | 30,567 | 124,130 | 116,181 | |||||||||||
| Restructuring | — | 4,499 | 6,070 | 4,499 | |||||||||||
| Total operating expenses | 171,317 | 178,849 | 707,209 | 667,293 | |||||||||||
| Income (loss) from operations | 12,975 | (14,346 | ) | (6,856 | ) | (52,160 | ) | ||||||||
| Interest income | 5,738 | 5,377 | 23,325 | 24,700 | |||||||||||
| Interest expense | (7,587 | ) | (8,131 | ) | (31,920 | ) | (31,339 | ) | |||||||
| Other expense, net | (2,577 | ) | (609 | ) | (3,435 | ) | (8,602 | ) | |||||||
| Income (loss) before income taxes | 8,549 | (17,709 | ) | (18,886 | ) | (67,401 | ) | ||||||||
| Provision for income taxes | 6,681 | 3,939 | 17,415 | 10,883 | |||||||||||
| Net income (loss) | $ | 1,868 | $ | (21,648 | ) | $ | (36,301 | ) | $ | (78,284 | ) | ||||
| Net earnings (loss) per share: | |||||||||||||||
| Basic | $ | 0.02 | $ | (0.19 | ) | $ | (0.31 | ) | $ | (0.68 | ) | ||||
| Diluted | $ | 0.02 | $ | (0.19 | ) | $ | (0.31 | ) | $ | (0.68 | ) | ||||
| Weighted-average shares used to compute net earnings (loss) per share: | |||||||||||||||
| Basic | 119,748 | 116,717 | 118,789 | 115,408 | |||||||||||
| Diluted | 123,853 | 116,717 | 118,789 | 115,408 | |||||||||||
_______________
(1) Includes stock-based compensation as follows:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Cost of revenue | $ | 3,191 | $ | 2,705 | $ | 12,677 | $ | 11,247 | |||
| Sales and marketing | 15,210 | 14,700 | 62,727 | 61,322 | |||||||
| Research and development | 12,261 | 9,354 | 47,656 | 37,225 | |||||||
| General and administrative | 10,052 | 9,756 | 40,455 | 35,533 | |||||||
| Total stock-based compensation | $ | 40,714 | $ | 36,515 | $ | 163,515 | $ | 145,327 | |||
| TENABLE HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||
| December 31, | |||||||
| (in thousands, except per share data) | 2024 | 2023 | |||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 328,647 | $ | 237,132 | |||
| Short-term investments | 248,547 | 236,840 | |||||
| Accounts receivable (net of allowance for doubtful accounts of | 258,734 | 220,060 | |||||
| Deferred commissions | 51,791 | 49,559 | |||||
| Prepaid expenses and other current assets | 53,026 | 61,882 | |||||
| Total current assets | 940,745 | 805,473 | |||||
| Property and equipment, net | 39,265 | 45,436 | |||||
| Deferred commissions (net of current portion) | 67,914 | 72,394 | |||||
| Operating lease right-of-use assets | 45,139 | 34,835 | |||||
| Acquired intangible assets, net | 94,461 | 107,017 | |||||
| Goodwill | 541,292 | 518,539 | |||||
| Other assets | 13,303 | 23,177 | |||||
| Total assets | $ | 1,742,119 | $ | 1,606,871 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued expenses | $ | 19,981 | $ | 16,941 | |||
| Accrued compensation | 55,784 | 66,492 | |||||
| Deferred revenue | 650,372 | 580,779 | |||||
| Operating lease liabilities | 6,801 | 5,971 | |||||
| Other current liabilities | 5,154 | 5,655 | |||||
| Total current liabilities | 738,092 | 675,838 | |||||
| Deferred revenue (net of current portion) | 182,815 | 169,718 | |||||
| Term loan, net of issuance costs (net of current portion) | 356,705 | 359,281 | |||||
| Operating lease liabilities (net of current portion) | 56,224 | 48,058 | |||||
| Other liabilities | 8,329 | 7,632 | |||||
| Total liabilities | 1,342,165 | 1,260,527 | |||||
| Stockholders’ equity: | |||||||
| Common stock (par value: | 1,224 | 1,175 | |||||
| Additional paid-in capital | 1,374,659 | 1,185,100 | |||||
| Treasury stock (at cost: 2,673 and 356 shares at December 31, 2024 and 2023, respectively) | (114,911 | ) | (14,934 | ) | |||
| Accumulated other comprehensive income | 318 | 38 | |||||
| Accumulated deficit | (861,336 | ) | (825,035 | ) | |||
| Total stockholders’ equity | 399,954 | 346,344 | |||||
| Total liabilities and stockholders' equity | $ | 1,742,119 | $ | 1,606,871 | |||
| TENABLE HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | |||||||
| Year Ended December 31, | |||||||
| (in thousands) | 2024 | 2023 | |||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (36,301 | ) | $ | (78,284 | ) | |
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 33,209 | 27,108 | |||||
| Stock-based compensation | 163,515 | 145,327 | |||||
| Net accretion of discounts and amortization of premiums on short-term investments | (7,595 | ) | (8,323 | ) | |||
| Amortization of debt issuance costs | 1,353 | 1,267 | |||||
| (Gain) loss on other investments | (1,452 | ) | 5,617 | ||||
| Restructuring | 4,528 | — | |||||
| Other | 6,507 | 2,179 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (38,730 | ) | (30,042 | ) | |||
| Prepaid expenses and other assets | 26,170 | 1,689 | |||||
| Accounts payable, accrued expenses and accrued compensation | (8,257 | ) | 7,071 | ||||
| Deferred revenue | 82,581 | 81,755 | |||||
| Other current and noncurrent liabilities | (8,052 | ) | (5,509 | ) | |||
| Net cash provided by operating activities | 217,476 | 149,855 | |||||
| Cash flows from investing activities: | |||||||
| Purchases of property and equipment | (4,247 | ) | (1,704 | ) | |||
| Capitalized software development costs | (6,451 | ) | (7,052 | ) | |||
| Purchases of short-term investments | (287,797 | ) | (278,209 | ) | |||
| Sales and maturities of short-term investments | 283,964 | 317,651 | |||||
| Proceeds from other investments | 3,512 | — | |||||
| Purchases of other investments | (1,250 | ) | — | ||||
| Business combinations, net of cash acquired | (29,162 | ) | (243,301 | ) | |||
| Net cash used in investing activities | (41,431 | ) | (212,615 | ) | |||
| Cash flows from financing activities: | |||||||
| Payments on term loan | (3,750 | ) | (3,750 | ) | |||
| Proceeds from stock issued in connection with the employee stock purchase plan | 16,262 | 16,224 | |||||
| Proceeds from the exercise of stock options | 8,064 | 3,501 | |||||
| Purchase of treasury stock | (99,977 | ) | (14,934 | ) | |||
| Other financing activities | — | 210 | |||||
| Net cash (used in) provided by financing activities | (79,401 | ) | 1,251 | ||||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | (5,129 | ) | (2,225 | ) | |||
| Net increase (decrease) in cash and cash equivalents and restricted cash | 91,515 | (63,734 | ) | ||||
| Cash and cash equivalents and restricted cash at beginning of year | 237,132 | 300,866 | |||||
| Cash and cash equivalents and restricted cash at end of year | $ | 328,647 | $ | 237,132 | |||
| TENABLE HOLDINGS, INC. REVENUE COMPONENTS AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited) | |||||||||||
| Revenue | Three Months Ended December 31, | Year Ended December 31, | |||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||
| Subscription revenue | $ | 215,932 | $ | 193,880 | $ | 824,659 | $ | 725,013 | |||
| Perpetual license and maintenance revenue | 11,833 | 12,194 | 47,774 | 48,729 | |||||||
| Professional services and other revenue | 7,966 | 7,232 | 27,588 | 24,968 | |||||||
| Revenue(1) | $ | 235,731 | $ | 213,306 | $ | 900,021 | $ | 798,710 | |||
_______________
(1) Recurring revenue, which includes revenue from subscription arrangements for software (both recognized ratably over the subscription term and upon delivery) and cloud-based solutions and maintenance associated with perpetual licenses, represented
| Calculated Current Billings | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Revenue | $ | 235,731 | $ | 213,306 | $ | 900,021 | $ | 798,710 | |||||||
| Deferred revenue (current), end of period | 650,372 | 580,779 | 650,372 | 580,779 | |||||||||||
| Deferred revenue (current), beginning of period(1) | (583,940 | ) | (522,449 | ) | (580,887 | ) | (506,192 | ) | |||||||
| Calculated current billings | $ | 302,163 | $ | 271,636 | $ | 969,506 | $ | 873,297 | |||||||
_______________
(1) Deferred revenue (current), beginning of period for the three months ended December 31, 2023 and years ended December 31, 2024 and 2023 includes
| Remaining Performance Obligations | At December 31, | ||||
| (in thousands) | 2024 | 2023 | |||
| Remaining performance obligations, short-term | $ | 660,647 | $ | 595,053 | |
| Remaining performance obligations, long-term | 206,879 | 179,955 | |||
| Remaining performance obligations | $ | 867,526 | $ | 775,008 | |
| Free Cash Flow and Unlevered Free Cash Flow | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net cash provided by operating activities | $ | 81,119 | $ | 38,505 | $ | 217,476 | $ | 149,855 | |||||||
| Purchases of property and equipment | (2,323 | ) | (405 | ) | (4,247 | ) | (1,704 | ) | |||||||
| Capitalized software development costs | (521 | ) | (2,345 | ) | (6,451 | ) | (7,052 | ) | |||||||
| Free cash flow | 78,275 | 35,755 | 206,778 | 141,099 | |||||||||||
| Cash paid for interest and other financing costs | 7,472 | 7,537 | 30,977 | 34,323 | |||||||||||
| Unlevered free cash flow | $ | 85,747 | $ | 43,292 | $ | 237,755 | $ | 175,422 | |||||||
Free cash flow and unlevered free cash flow for the periods presented were impacted by:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Employee stock purchase plan activity | $ | 5,267 | $ | 3,584 | $ | (1,016 | ) | $ | 1,077 | ||||||
| Acquisition-related expenses | (170 | ) | (8,506 | ) | (1,496 | ) | (9,336 | ) | |||||||
| Restructuring | — | — | (5,911 | ) | — | ||||||||||
| Tax payment on intra-entity asset transfer(1) | (1,232 | ) | — | (1,232 | ) | — | |||||||||
________________
(1) The tax payment on intra-entity asset transfer includes
| Non-GAAP Income from Operations and Non-GAAP Operating Margin | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Income (loss) from operations | $ | 12,975 | $ | (14,346 | ) | $ | (6,856 | ) | $ | (52,160 | ) | ||||
| Stock-based compensation | 40,714 | 36,515 | 163,515 | 145,327 | |||||||||||
| Acquisition-related expenses | 648 | 4,744 | 1,932 | 9,472 | |||||||||||
| Restructuring | — | 4,499 | 6,070 | 4,499 | |||||||||||
| Amortization of acquired intangible assets | 5,014 | 4,651 | 19,457 | 13,859 | |||||||||||
| Non-GAAP income from operations | $ | 59,351 | $ | 36,063 | $ | 184,118 | $ | 120,997 | |||||||
| Operating margin | 6 | % | (7) | % | (1) | % | (7) | % | |||||||
| Non-GAAP operating margin | 25 | % | 17 | % | 20 | % | 15 | % | |||||||
| Non-GAAP Net Income and Non-GAAP Earnings Per Share | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| (in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net income (loss) | $ | 1,868 | $ | (21,648 | ) | $ | (36,301 | ) | $ | (78,284 | ) | ||||
| Stock-based compensation | 40,714 | 36,515 | 163,515 | 145,327 | |||||||||||
| Tax impact of stock-based compensation(1) | 1,219 | 971 | 2,845 | 2,017 | |||||||||||
| Acquisition-related expenses(2) | 648 | 4,744 | 1,932 | 9,472 | |||||||||||
| Restructuring(2) | — | 4,499 | 6,070 | 4,499 | |||||||||||
| Amortization of acquired intangible assets(3) | 5,014 | 4,651 | 19,457 | 13,859 | |||||||||||
| Tax impact of acquisitions | (31 | ) | 426 | (161 | ) | 265 | |||||||||
| Tax impact of intra-entity asset transfer(4) | 1,232 | — | 1,232 | — | |||||||||||
| Non-GAAP net income | $ | 50,664 | $ | 30,158 | $ | 158,589 | $ | 97,155 | |||||||
| Net earnings (loss) per share, diluted | $ | 0.02 | $ | (0.19 | ) | $ | (0.31 | ) | $ | (0.68 | ) | ||||
| Stock-based compensation | 0.33 | 0.31 | 1.38 | 1.25 | |||||||||||
| Tax impact of stock-based compensation(1) | 0.01 | 0.01 | 0.03 | 0.02 | |||||||||||
| Acquisition-related expenses(2) | — | 0.04 | 0.02 | 0.08 | |||||||||||
| Restructuring(2) | — | 0.04 | 0.05 | 0.04 | |||||||||||
| Amortization of acquired intangible assets(3) | 0.04 | 0.04 | 0.16 | 0.11 | |||||||||||
| Tax impact of acquisitions | — | — | — | — | |||||||||||
| Tax impact of intra-entity asset transfer(4) | 0.01 | — | 0.01 | — | |||||||||||
| Adjustment to diluted earnings per share(5) | — | — | (0.05 | ) | (0.02 | ) | |||||||||
| Non-GAAP earnings per share, diluted | $ | 0.41 | $ | 0.25 | $ | 1.29 | $ | 0.80 | |||||||
| Weighted-average shares used to compute GAAP net earnings (loss) per share, diluted | 123,853 | 116,717 | 118,789 | 115,408 | |||||||||||
| Weighted-average shares used to compute non-GAAP earnings per share, diluted | 123,853 | 122,023 | 123,370 | 120,714 | |||||||||||
________________
(1) The tax impact of stock-based compensation is based on the tax treatment for the applicable tax jurisdictions.
(2) The tax impact of acquisition-related expenses and restructuring charges are not material.
(3) The tax impact of the amortization of acquired intangible assets is included in the tax impact of acquisitions.
(4) The tax impact of the intra-entity asset transfer is additional tax incurred related to the 2021 internal restructuring of Indegy.
(5) An adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares, when applicable.
| Non-GAAP Gross Profit and Non-GAAP Gross Margin | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Gross profit | $ | 184,292 | $ | 164,503 | $ | 700,353 | $ | 615,133 | |||||||
| Stock-based compensation | 3,191 | 2,705 | 12,677 | 11,247 | |||||||||||
| Amortization of acquired intangible assets | 5,014 | 4,651 | 19,457 | 13,859 | |||||||||||
| Non-GAAP gross profit | $ | 192,497 | $ | 171,859 | $ | 732,487 | $ | 640,239 | |||||||
| Gross margin | 78 | % | 77 | % | 78 | % | 77 | % | |||||||
| Non-GAAP gross margin | 82 | % | 81 | % | 81 | % | 80 | % | |||||||
| Non-GAAP Sales and Marketing Expense | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Sales and marketing expense | $ | 95,348 | $ | 103,700 | $ | 395,385 | $ | 393,450 | |||||||
| Less: Stock-based compensation | 15,210 | 14,700 | 62,727 | 61,322 | |||||||||||
| Less: Acquisition-related expenses | — | 512 | 52 | 512 | |||||||||||
| Non-GAAP sales and marketing expense | $ | 80,138 | $ | 88,488 | $ | 332,606 | $ | 331,616 | |||||||
| Non-GAAP sales and marketing expense % of revenue | 34 | % | 41 | % | 37 | % | 42 | % | |||||||
| Non-GAAP Research and Development Expense | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Research and development expense | $ | 44,728 | $ | 40,083 | $ | 181,624 | $ | 153,163 | |||||||
| Less: Stock-based compensation | 12,261 | 9,354 | 47,656 | 37,225 | |||||||||||
| Less: Acquisition-related expenses | — | 2,880 | (20 | ) | 2,880 | ||||||||||
| Non-GAAP research and development expense | $ | 32,467 | $ | 27,849 | $ | 133,988 | $ | 113,058 | |||||||
| Non-GAAP research and development expense % of revenue | 14 | % | 13 | % | 15 | % | 14 | % | |||||||
| Non-GAAP General and Administrative Expense | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| General and administrative expense | $ | 31,241 | $ | 30,567 | $ | 124,130 | $ | 116,181 | |||||||
| Less: Stock-based compensation | 10,052 | 9,756 | 40,455 | 35,533 | |||||||||||
| Less: Acquisition-related expenses | 648 | 1,352 | 1,900 | 6,080 | |||||||||||
| Non-GAAP general and administrative expense | $ | 20,541 | $ | 19,459 | $ | 81,775 | $ | 74,568 | |||||||
| Non-GAAP general and administrative expense % of revenue | 9 | % | 9 | % | 9 | % | 9 | % | |||||||
The following adjustments to reconcile forecasted non-GAAP income from operations, non-GAAP net income, non-GAAP earnings per share, free cash flow and unlevered free cash flow are subject to a number of uncertainties and assumptions, each of which are inherently difficult to forecast. As a result, actual adjustments and GAAP results may differ materially.
| Forecasted Non-GAAP Income from Operations | Three Months Ending March 31, 2025 | Year Ending December 31, 2025 | |||||||||||
| (in millions) | Low | High | Low | High | |||||||||
| Forecasted (loss) income from operations | $ | (18.0 | ) | $ | (16.0 | ) | $ | 3.0 | $ | 13.0 | |||
| Forecasted stock-based compensation | 55.0 | 55.0 | 190.0 | 190.0 | |||||||||
| Forecasted amortization of acquired intangible assets | 5.0 | 5.0 | 20.0 | 20.0 | |||||||||
| Forecasted non-GAAP income from operations | $ | 42.0 | $ | 44.0 | $ | 213.0 | $ | 223.0 | |||||
| Forecasted Non-GAAP Net Income and Non-GAAP Earnings Per Share | Three Months Ending March 31, 2025 | Year Ending December 31, 2025 | |||||||||||||
| (in millions, except per share data) | Low | High | Low | High | |||||||||||
| Forecasted net loss(1) | $ | (26.0 | ) | $ | (24.0 | ) | $ | (26.0 | ) | $ | (16.0 | ) | |||
| Forecasted stock-based compensation | 55.0 | 55.0 | 190.0 | 190.0 | |||||||||||
| Forecasted tax impact of stock-based compensation | 1.0 | 1.0 | 5.0 | 5.0 | |||||||||||
| Forecasted amortization of acquired intangible assets | 5.0 | 5.0 | 20.0 | 20.0 | |||||||||||
| Forecasted non-GAAP net income | $ | 35.0 | $ | 37.0 | $ | 189.0 | $ | 199.0 | |||||||
| Forecasted net loss per share, diluted(1) | $ | (0.22 | ) | $ | (0.20 | ) | $ | (0.21 | ) | $ | (0.13 | ) | |||
| Forecasted stock-based compensation | 0.46 | 0.46 | 1.57 | 1.57 | |||||||||||
| Forecasted tax impact of stock-based compensation | 0.01 | 0.01 | 0.04 | 0.04 | |||||||||||
| Forecasted amortization of acquired intangible assets | 0.04 | 0.04 | 0.16 | 0.16 | |||||||||||
| Adjustment to diluted earnings per share(2) | (0.01 | ) | (0.01 | ) | (0.04 | ) | (0.04 | ) | |||||||
| Forecasted non-GAAP earnings per share, diluted | $ | 0.28 | $ | 0.30 | $ | 1.52 | $ | 1.60 | |||||||
| Forecasted weighted-average shares used to compute GAAP net loss per share, diluted | 120.5 | 120.5 | 121.0 | 121.0 | |||||||||||
| Forecasted weighted-average shares used to compute non-GAAP earnings per share, diluted | 124.0 | 124.0 | 124.5 | 124.5 | |||||||||||
________________
(1) The forecasted GAAP net loss assumes income tax expense of
(2) Adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.
| Forecasted Free Cash Flow and Unlevered Free Cash Flow | Year Ending December 31, 2025 | ||||||
| (in millions) | Low | High | |||||
| Forecasted net cash provided by operating activities | $ | 278.0 | $ | 288.0 | |||
| Forecasted purchases of property and equipment | (17.0 | ) | (17.0 | ) | |||
| Forecasted capitalized software development costs | (3.0 | ) | (3.0 | ) | |||
| Forecasted free cash flow | 258.0 | 268.0 | |||||
| Forecasted cash paid for interest and other financing costs | 27.0 | 27.0 | |||||
| Forecasted unlevered free cash flow | $ | 285.0 | $ | 295.0 | |||
FAQ
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