Tenable Announces Second Quarter 2024 Financial Results
Tenable Holdings (TENB) reported strong Q2 2024 financial results, with revenue reaching $221.2 million, up 13% year-over-year. The company's calculated current billings grew 10% to $221.1 million. Despite a GAAP operating loss of $8.8 million, Tenable achieved a non-GAAP income from operations of $42.8 million, significantly higher than the previous year.
Key highlights include:
- Non-GAAP diluted EPS of $0.31, up from $0.22 in Q2 2023
- Cash and short-term investments of $487.0 million as of June 30, 2024
- Addition of 408 new enterprise platform customers and 76 net new six-figure customers
Tenable also acquired Eureka Security to enhance its cloud data security offerings and formed a strategic alliance with Deloitte. The company provided a positive outlook for Q3 2024 and the full year, projecting continued growth in revenue and non-GAAP earnings.
Tenable Holdings (TENB) ha riportato risultati finanziari robusti per il secondo trimestre del 2024, con ricavi che hanno raggiunto 221,2 milioni di dollari, in aumento del 13% rispetto all'anno precedente. Le fatturazioni correnti calcolate dell'azienda sono aumentate del 10% a 221,1 milioni di dollari. Nonostante una perdita operativa GAAP di 8,8 milioni di dollari, Tenable ha registrato un reddito operativo non-GAAP di 42,8 milioni di dollari, significativamente superiore rispetto all'anno precedente.
Tra i punti salienti ci sono:
- EPS diluiti non-GAAP di 0,31 dollari, in aumento rispetto a 0,22 dollari nel Q2 2023
- Liquidità e investimenti a breve termine pari a 487,0 milioni di dollari al 30 giugno 2024
- Aggiunta di 408 nuovi clienti della piattaforma enterprise e 76 nuovi clienti con contratti a sei cifre
Tenable ha anche acquisito Eureka Security per migliorare le sue offerte di sicurezza dei dati in cloud e ha stretto un'alleanza strategica con Deloitte. L'azienda ha fornito una previsione positiva per il Q3 2024 e per l'intero anno, prevedendo una continua crescita dei ricavi e degli utili non-GAAP.
Tenable Holdings (TENB) informó resultados financieros sólidos para el segundo trimestre de 2024, con ingresos alcanzando 221,2 millones de dólares, un aumento del 13% en comparación con el año anterior. La facturación actual calculada de la compañía creció un 10% hasta 221,1 millones de dólares. A pesar de una pérdida operativa GAAP de 8,8 millones de dólares, Tenable logró un ingreso operativo no-GAAP de 42,8 millones de dólares, significativamente más alto que el año anterior.
Los puntos destacados incluyen:
- EPS diluido no-GAAP de 0,31 dólares, en comparación con 0,22 dólares en el Q2 2023
- Disponible y inversiones a corto plazo por 487,0 millones de dólares al 30 de junio de 2024
- Añadido de 408 nuevos clientes de la plataforma empresarial y 76 nuevos clientes de seis cifras
Tenable también adquirió Eureka Security para mejorar sus ofertas de seguridad de datos en la nube y formó una alianza estratégica con Deloitte. La compañía proporcionó una perspectiva positiva para el Q3 2024 y el año completo, proyectando un crecimiento continuo en ingresos y ganancias no-GAAP.
테너블 홀딩스 (TENB)는 2024년 2분기 재무 결과가 강력하며, 매출이 2억 2,120만 달러에 도달하여 전년 대비 13% 증가했다고 보고했습니다. 회사의 계산된 현재 청구액은 10% 증가하여 2억 2,110만 달러에 달했습니다. GAAP 기준 운영 손실이 880만 달러에도 불구하고, 테너블은 비-GAAP 운영 수익이 4,280만 달러로, 작년보다 크게 증가했습니다.
주요 사항은 다음과 같습니다:
- 비-GAAP 희석 주당순이익(EPS) 0.31달러, 2023년 2분기 0.22달러에서 상승
- 2024년 6월 30일 기준 현금 및 단기 투자 4억 8,700만 달러
- 기업 플랫폼 고객 408명, 순 신규 6자리 고객 76명 추가
테너블은 또한 클라우드 데이터 보안 서비스를 강화하기 위해 유레카 시큐리티를 인수하고 딜로이트와 전략적 제휴를 맺었습니다. 회사는 2024년 3분기 및 전체 연도에 대해 긍정적인 전망을 제시하며, 매출 및 비-GAAP 수익이 지속적으로 성장할 것으로 예측하였습니다.
Tenable Holdings (TENB) a annoncé des résultats financiers solides pour le deuxième trimestre 2024, avec un chiffre d'affaires atteignant 221,2 millions de dollars, en hausse de 13 % par rapport à l'année précédente. Les facturations courantes calculées de l'entreprise ont augmenté de 10 % pour atteindre 221,1 millions de dollars. Malgré une perte d'exploitation GAAP de 8,8 millions de dollars, Tenable a réalisé un bénéfice d'exploitation non-GAAP de 42,8 millions de dollars, considérablement supérieur à l'année précédente.
Les points saillants comprennent :
- BPA dilué non-GAAP de 0,31 dollar, contre 0,22 dollar au T2 2023
- Trésorerie et investissements à court terme de 487,0 millions de dollars au 30 juin 2024
- Ajout de 408 nouveaux clients de la plateforme d'entreprise et 76 nouveaux clients à six chiffres
Tenable a également acquis Eureka Security pour améliorer ses offres de sécurité des données cloud et a formé une alliance stratégique avec Deloitte. L'entreprise a fourni des perspectives positives pour le T3 2024 et l'année entière, prévoyant une croissance continue des revenus et des bénéfices non-GAAP.
Tenable Holdings (TENB) hat im zweiten Quartal 2024 starke finanzielle Ergebnisse gemeldet, mit einem Umsatz von 221,2 Millionen Dollar, was einem Anstieg von 13% im Vergleich zum Vorjahr entspricht. Die berechneten aktuellen Rechnungen des Unternehmens stiegen um 10% auf 221,1 Millionen Dollar. Trotz eines GAAP-Betriebsverlusts von 8,8 Millionen Dollar erzielte Tenable ein non-GAAP-Betriebsergebnis von 42,8 Millionen Dollar, erheblich höher als im Vorjahr.
Wichtige Highlights umfassen:
- Non-GAAP verwässertes EPS von 0,31 Dollar, erhöht von 0,22 Dollar im Q2 2023
- Bargeld und kurzfristige Investitionen von 487,0 Millionen Dollar zum 30. Juni 2024
- Zuwachs von 408 neuen Unternehmenskunden und 76 neuen Kunden mit sechsstelligen Verträgen
Tenable hat auch Eureka Security übernommen, um sein Angebot an Cloud-Datensicherheitslösungen zu verbessern, und eine strategische Allianz mit Deloitte gebildet. Das Unternehmen gab eine positive Prognose für Q3 2024 und das Gesamtjahr ab und rechnet mit einem anhaltenden Umsatz- und Non-GAAP-Gewinnwachstum.
- Revenue increased 13% year-over-year to $221.2 million
- Non-GAAP income from operations grew to $42.8 million from $30.2 million in Q2 2023
- Non-GAAP diluted EPS increased to $0.31 from $0.22 year-over-year
- Added 408 new enterprise platform customers and 76 net new six-figure customers
- Acquired Eureka Security to enhance cloud data security offerings
- Formed strategic alliance with Deloitte for improved attack surface management
- Positive Q3 and full-year 2024 guidance with projected revenue and earnings growth
- GAAP operating loss of $8.8 million
- GAAP net loss of $14.6 million
- Calculated current billings growth of 10% was lower than revenue growth
- Unlevered free cash flow decreased to $36.5 million from $39.8 million in Q2 2023
Insights
Tenable's Q2 2024 results present a mixed picture with some positive highlights and areas of concern. Revenue grew 13% year-over-year to
On profitability, Tenable showed improvement. Non-GAAP operating income increased to
Key performance indicators show mixed results:
- Addition of 408 new enterprise platform customers indicates solid market traction
- 76 net new six-figure customers suggest success in upselling and cross-selling
- Unlevered free cash flow decreased slightly to
$36.5 million from$39.8 million in Q2 2023
The forward guidance for Q3 and full-year 2024 appears cautiously optimistic, with projected revenue growth and improved profitability. However, the modest increase in calculated current billings forecast suggests ongoing challenges in accelerating top-line growth.
Overall, while Tenable demonstrates resilience in a challenging market, investors should monitor the company's ability to accelerate billings growth and maintain profitability improvements in the coming quarters.
Tenable's Q2 results highlight the company's strategic pivot towards cloud security and integrated exposure management solutions. The "tremendous momentum" in Tenable Cloud Security and Tenable One products indicates a successful alignment with market trends towards cloud adoption and consolidated security platforms.
The acquisition of Eureka Security, a data security posture management (DSPM) provider, is a strategic move to enhance Tenable's cloud security capabilities. This addition will allow Tenable to offer a more comprehensive view of cloud data security, addressing the growing concern of data protection in multi-cloud environments.
The strategic alliance with Deloitte is a significant development, potentially opening up new enterprise-level opportunities and enhancing Tenable's market reach. This partnership could be particularly valuable in driving adoption of Tenable's newer products among large organizations.
The expansion of Tenable Cloud Security and Vulnerability Management to AWS in Abu Dhabi demonstrates the company's commitment to global expansion and catering to region-specific cloud compliance requirements.
Tenable's recognition as an AI 100 company by CRN suggests that the company is successfully incorporating AI technologies into its product offerings, which could be a key differentiator in the competitive cybersecurity market.
While these developments are promising, the lower-than-expected CCB growth indicates that Tenable may be facing challenges in translating its product innovations and partnerships into accelerated sales growth. The company will need to focus on effectively communicating the value proposition of its expanded product portfolio to drive higher adoption rates and larger deal sizes.
- Revenue of
$221.2 million , up13% year-over-year. - Calculated current billings of
$221.1 million , up10% year-over-year. - GAAP operating margin of (4)%; Non-GAAP operating margin of
19% . - Net cash provided by operating activities of
$31.4 million ; Unlevered free cash flow of$36.5 million .
COLUMBIA, Md., July 31, 2024 (GLOBE NEWSWIRE) -- Tenable Holdings, Inc. ("Tenable") (Nasdaq: TENB), the Exposure Management company, today announced financial results for the quarter ended June 30, 2024.
"We delivered better-than-expected revenue, operating income and unlevered cash flow in Q2," said Amit Yoran, Chairman and CEO of Tenable. "Despite lower-than-expected CCB, we saw tremendous momentum in our newer products, specifically Tenable Cloud Security and Tenable One. As we have expanded our offerings, Tenable has become a trusted source of truth for understanding and managing exposure and risk."
Second Quarter 2024 Financial Highlights
- Revenue was
$221.2 million , a13% increase year-over-year. - Calculated current billings was
$221.1 million , a10% increase year-over-year. - GAAP loss from operations was
$8.8 million , compared to$10.7 million in the second quarter of 2023. - Non-GAAP income from operations was
$42.8 million , compared to$30.2 million in the second quarter of 2023. - GAAP net loss was
$14.6 million , compared to$16.0 million in the second quarter of 2023. - GAAP net loss per share was
$0.12 , compared to$0.14 in the second quarter of 2023. - Non-GAAP net income was
$38.2 million , compared to$26.3 million in the second quarter of 2023. - Non-GAAP diluted earnings per share was
$0.31 , compared to$0.22 in the second quarter of 2023. - Cash and cash equivalents and short-term investments were
$487.0 million at June 30, 2024, compared to$474.0 million at December 31, 2023. - Net cash provided by operating activities was
$31.4 million , compared to$30.2 million in the second quarter of 2023. - Unlevered free cash flow was
$36.5 million , compared to$39.8 million in the second quarter of 2023. - Repurchased 0.6 million shares of our common stock for
$25.0 million .
Recent Business Highlights
- Added 408 new enterprise platform customers and 76 net new six-figure customers.
- Acquired Eureka Security, a provider of data security posture management (DSPM) for cloud environments, to provide a holistic view of an organization’s cloud data security footprint, to fight policy drift and misconfigurations, and to continuously improve their security posture over time.
- Formed a strategic alliance with Deloitte to enable customers to harness the power of proactive security and remove noise by delivering a unified view of their attack surfaces for both cloud and on-prem.
- Expanded availability of Tenable Cloud Security and Tenable Vulnerability Management to Amazon Web Services in Abu Dhabi.
- Recognized as an AI 100 company by CRN.
Financial Outlook
For the third quarter of 2024, we currently expect:
- Revenue in the range of
$222.0 million to$224.0 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 expense of$8.3 million , interest income of$5.7 million and a provision for income taxes of$3.8 million . - Non-GAAP diluted earnings per share in the range of
$0.28 t o$0.30 . - 123.0 million diluted weighted average shares outstanding.
For the year ending December 31, 2024, we currently expect:
- Calculated current billings in the range of
$957.0 million to$967.0 million . - Revenue in the range of
$889.0 million to$895.0 million . - Non-GAAP income from operations in the range of
$167.0 million to$171.0 million . - Non-GAAP net income in the range of
$143.0 million to$147.0 million , assuming interest expense of$32.7 million , interest income of$23.5 million and a provision for income taxes of$12.8 million . - Non-GAAP diluted earnings per share in the range of
$1.16 t o$1.19 . - 123.5 million diluted weighted average shares outstanding.
- Unlevered free cash flow in the range of
$225.0 million to$235.0 million .
Conference Call Information
Tenable will host a conference call on July 31, 2024 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. Approximately 44,000 organizations around the globe rely on Tenable to understand and reduce cyber risk. As the creator of Nessus®, Tenable extended its expertise in vulnerabilities to deliver the world’s first platform to see and secure any digital asset on any computing platform. Tenable customers include approximately 65 percent of the Fortune 500, approximately 50 percent of the Global 2000, and large government agencies. 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, 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 as well as 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 or use 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. 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 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 June 30, | Six Months Ended June 30, | ||||||||||||||
| (in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Revenue | $ | 221,241 | $ | 195,036 | $ | 437,202 | $ | 383,875 | |||||||
| Cost of revenue(1) | 48,798 | 43,514 | 97,730 | 89,020 | |||||||||||
| Gross profit | 172,443 | 151,522 | 339,472 | 294,855 | |||||||||||
| Operating expenses: | |||||||||||||||
| Sales and marketing(1) | 101,129 | 97,800 | 200,954 | 194,991 | |||||||||||
| Research and development(1) | 45,149 | 37,845 | 88,876 | 76,028 | |||||||||||
| General and administrative(1) | 30,302 | 26,622 | 61,320 | 53,737 | |||||||||||
| Restructuring | 4,681 | — | 6,070 | — | |||||||||||
| Total operating expenses | 181,261 | 162,267 | 357,220 | 324,756 | |||||||||||
| Loss from operations | (8,818 | ) | (10,745 | ) | (17,748 | ) | (29,901 | ) | |||||||
| Interest income | 5,974 | 6,566 | 11,598 | 11,661 | |||||||||||
| Interest expense | (8,073 | ) | (7,750 | ) | (16,185 | ) | (15,089 | ) | |||||||
| Other income (expense), net | 93 | (944 | ) | (1,217 | ) | (1,491 | ) | ||||||||
| Loss before income taxes | (10,824 | ) | (12,873 | ) | (23,552 | ) | (34,820 | ) | |||||||
| Provision for income taxes | 3,748 | 3,101 | 5,406 | 6,251 | |||||||||||
| Net loss | $ | (14,572 | ) | $ | (15,974 | ) | $ | (28,958 | ) | $ | (41,071 | ) | |||
| Net loss per share, basic and diluted | $ | (0.12 | ) | $ | (0.14 | ) | $ | (0.25 | ) | $ | (0.36 | ) | |||
| Weighted-average shares used to compute net loss per share, basic and diluted | 118,681 | 115,131 | 118,111 | 114,465 | |||||||||||
_______________
(1) Includes stock-based compensation as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Cost of revenue | $ | 3,288 | $ | 2,906 | $ | 6,270 | $ | 5,531 | |||
| Sales and marketing | 16,276 | 16,423 | 31,576 | 30,817 | |||||||
| Research and development | 11,799 | 9,764 | 22,960 | 18,629 | |||||||
| General and administrative | 10,035 | 8,767 | 20,311 | 17,000 | |||||||
| Total stock-based compensation | $ | 41,398 | $ | 37,860 | $ | 81,117 | $ | 71,977 | |||
| TENABLE HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS | |||||||
| June 30, 2024 | December 31, 2023 | ||||||
| (in thousands, except per share data) | (unaudited) | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 233,467 | $ | 237,132 | |||
| Short-term investments | 253,536 | 236,840 | |||||
| Accounts receivable (net of allowance for doubtful accounts of | 179,612 | 220,060 | |||||
| Deferred commissions | 49,388 | 49,559 | |||||
| Prepaid expenses and other current assets | 58,886 | 61,882 | |||||
| Total current assets | 774,889 | 805,473 | |||||
| Property and equipment, net | 41,448 | 45,436 | |||||
| Deferred commissions (net of current portion) | 66,141 | 72,394 | |||||
| Operating lease right-of-use assets | 33,315 | 34,835 | |||||
| Acquired intangible assets, net | 104,488 | 107,017 | |||||
| Goodwill | 541,292 | 518,539 | |||||
| Other assets | 14,776 | 23,177 | |||||
| Total assets | $ | 1,576,349 | $ | 1,606,871 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued expenses | $ | 19,543 | $ | 16,941 | |||
| Accrued compensation | 44,119 | 66,492 | |||||
| Deferred revenue | 562,587 | 580,779 | |||||
| Operating lease liabilities | 6,161 | 5,971 | |||||
| Other current liabilities | 5,832 | 5,655 | |||||
| Total current liabilities | 638,242 | 675,838 | |||||
| Deferred revenue (net of current portion) | 163,211 | 169,718 | |||||
| Term loan, net of issuance costs (net of current portion) | 357,969 | 359,281 | |||||
| Operating lease liabilities (net of current portion) | 45,315 | 48,058 | |||||
| Other liabilities | 8,051 | 7,632 | |||||
| Total liabilities | 1,212,788 | 1,260,527 | |||||
| Stockholders’ equity: | |||||||
| Common stock (par value: | 1,205 | 1,175 | |||||
| Additional paid-in capital | 1,281,545 | 1,185,100 | |||||
| Treasury stock (at cost: 1,471 and 356 shares at June 30, 2024 and December 31, 2023, respectively) | (64,925 | ) | (14,934 | ) | |||
| Accumulated other comprehensive (loss) income | (271 | ) | 38 | ||||
| Accumulated deficit | (853,993 | ) | (825,035 | ) | |||
| Total stockholders’ equity | 363,561 | 346,344 | |||||
| Total liabilities and stockholders’ equity | $ | 1,576,349 | $ | 1,606,871 | |||
| TENABLE HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | |||||||
| Six Months Ended June 30, | |||||||
| (in thousands) | 2024 | 2023 | |||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (28,958 | ) | $ | (41,071 | ) | |
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 15,864 | 12,624 | |||||
| Stock-based compensation | 81,117 | 71,977 | |||||
| Net accretion of discounts and amortization of premiums on short-term investments | (4,378 | ) | (3,595 | ) | |||
| Amortization of debt issuance costs | 662 | 618 | |||||
| Restructuring | 4,528 | — | |||||
| Other | 2,184 | 182 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | 40,462 | 33,997 | |||||
| Prepaid expenses and other assets | 18,105 | 12,649 | |||||
| Accounts payable, accrued expenses and accrued compensation | (20,162 | ) | (1,276 | ) | |||
| Deferred revenue | (24,807 | ) | (14,408 | ) | |||
| Other current and noncurrent liabilities | (2,867 | ) | (2,758 | ) | |||
| Net cash provided by operating activities | 81,750 | 68,939 | |||||
| Cash flows from investing activities: | |||||||
| Purchases of property and equipment | (1,191 | ) | (1,098 | ) | |||
| Capitalized software development costs | (4,767 | ) | (2,813 | ) | |||
| Purchases of short-term investments | (160,405 | ) | (147,434 | ) | |||
| Sales and maturities of short-term investments | 147,778 | 148,760 | |||||
| Proceeds from other investments | 3,512 | — | |||||
| Purchases of other investments | (250 | ) | — | ||||
| Business combinations, net of cash acquired | (29,162 | ) | — | ||||
| Net cash used in investing activities | (44,485 | ) | (2,585 | ) | |||
| Cash flows from financing activities: | |||||||
| Payments on term loan | (1,875 | ) | (1,875 | ) | |||
| Proceeds from loan agreement | — | 424 | |||||
| Proceeds from stock issued in connection with the employee stock purchase plan | 9,878 | 9,914 | |||||
| Proceeds from the exercise of stock options | 4,135 | 1,537 | |||||
| Purchase of treasury stock | (49,991 | ) | — | ||||
| Other financing activities | — | (129 | ) | ||||
| Net cash (used in) provided by financing activities | (37,853 | ) | 9,871 | ||||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | (3,077 | ) | (1,032 | ) | |||
| Net (decrease) increase in cash and cash equivalents and restricted cash | (3,665 | ) | 75,193 | ||||
| Cash and cash equivalents and restricted cash at beginning of period | 237,132 | 300,866 | |||||
| Cash and cash equivalents and restricted cash at end of period | $ | 233,467 | $ | 376,059 | |||
| TENABLE HOLDINGS, INC. REVENUE COMPONENTS AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited) | |||||||||||
| Revenue | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||
| Subscription revenue | $ | 202,538 | $ | 176,767 | $ | 400,173 | $ | 347,865 | |||
| Perpetual license and maintenance revenue | 12,016 | 12,154 | 24,172 | 24,335 | |||||||
| Professional services and other revenue | 6,687 | 6,115 | 12,857 | 11,675 | |||||||
| Revenue(1) | $ | 221,241 | $ | 195,036 | $ | 437,202 | $ | 383,875 | |||
_______________
(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 June 30, | Six Months Ended June 30, | |||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Revenue | $ | 221,241 | $ | 195,036 | $ | 437,202 | $ | 383,875 | |||||||
| Deferred revenue (current), end of period | 562,587 | 495,199 | 562,587 | 495,199 | |||||||||||
| Deferred revenue (current), beginning of period(1) | (562,683 | ) | (490,076 | ) | (580,887 | ) | (502,115 | ) | |||||||
| Calculated current billings | $ | 221,145 | $ | 200,159 | $ | 418,902 | $ | 376,959 | |||||||
________________
(1) Deferred revenue (current), beginning of period for the three and six months ended June 30, 2024 includes
| Remaining Performance Obligations | June 30, | ||||
| (in thousands) | 2024 | 2023 | |||
| Remaining performance obligations, short-term | $ | 572,015 | $ | 503,960 | |
| Remaining performance obligations, long-term | 175,526 | 158,713 | |||
| Remaining performance obligations | $ | 747,541 | $ | 662,673 | |
| Free Cash Flow and Unlevered Free Cash Flow | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net cash provided by operating activities | $ | 31,424 | $ | 30,193 | $ | 81,750 | $ | 68,939 | |||||||
| Purchases of property and equipment | (526 | ) | (711 | ) | (1,191 | ) | (1,098 | ) | |||||||
| Capitalized software development costs | (2,235 | ) | (1,790 | ) | (4,767 | ) | (2,813 | ) | |||||||
| Free cash flow(1) | 28,663 | 27,692 | 75,792 | 65,028 | |||||||||||
| Cash paid for interest and other financing costs | 7,839 | 12,123 | 15,450 | 18,943 | |||||||||||
| Unlevered free cash flow(1) | $ | 36,502 | $ | 39,815 | $ | 91,242 | $ | 83,971 | |||||||
________________
(1) Free cash flow and unlevered free cash flow for the periods presented were impacted by:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Employee stock purchase plan activity | $ | 3,702 | $ | 4,419 | $ | (2,630 | ) | $ | (271 | ) | |||||
| Acquisition-related expenses | (197 | ) | (21 | ) | (663 | ) | (259 | ) | |||||||
| Restructuring | (1,597 | ) | — | (5,419 | ) | — | |||||||||
| Non-GAAP Income from Operations and Non-GAAP Operating Margin | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Loss from operations | $ | (8,818 | ) | $ | (10,745 | ) | $ | (17,748 | ) | $ | (29,901 | ) | |||
| Stock-based compensation | 41,398 | 37,860 | 81,117 | 71,977 | |||||||||||
| Acquisition-related expenses | 763 | 30 | 924 | 130 | |||||||||||
| Restructuring | 4,681 | — | 6,070 | — | |||||||||||
| Amortization of acquired intangible assets | 4,760 | 3,073 | 9,429 | 6,153 | |||||||||||
| Non-GAAP income from operations | $ | 42,784 | $ | 30,218 | $ | 79,792 | $ | 48,359 | |||||||
| Operating margin | (4 | )% | (6 | )% | (4 | )% | (8 | )% | |||||||
| Non-GAAP operating margin | 19 | % | 15 | % | 18 | % | 13 | % | |||||||
| Non-GAAP Net Income and Non-GAAP Earnings Per Share | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
| (in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net loss | $ | (14,572 | ) | $ | (15,974 | ) | $ | (28,958 | ) | $ | (41,071 | ) | |||
| Stock-based compensation | 41,398 | 37,860 | 81,117 | 71,977 | |||||||||||
| Tax impact of stock-based compensation(1) | 1,175 | 1,336 | 98 | 2,253 | |||||||||||
| Acquisition-related expenses(2) | 763 | 30 | 924 | 130 | |||||||||||
| Restructuring(2) | 4,681 | — | 6,070 | — | |||||||||||
| Amortization of acquired intangible assets(3) | 4,760 | 3,073 | 9,429 | 6,153 | |||||||||||
| Tax impact of acquisitions | (43 | ) | (59 | ) | (78 | ) | (113 | ) | |||||||
| Non-GAAP net income | $ | 38,162 | $ | 26,266 | $ | 68,602 | $ | 39,329 | |||||||
| Net loss per share, diluted | $ | (0.12 | ) | $ | (0.14 | ) | $ | (0.25 | ) | $ | (0.36 | ) | |||
| Stock-based compensation | 0.35 | 0.33 | 0.69 | 0.63 | |||||||||||
| Tax impact of stock-based compensation(1) | 0.01 | 0.01 | — | 0.02 | |||||||||||
| Acquisition-related expenses(2) | — | — | 0.01 | — | |||||||||||
| Restructuring(2) | 0.04 | — | 0.05 | — | |||||||||||
| Amortization of acquired intangible assets(3) | 0.04 | 0.03 | 0.08 | 0.05 | |||||||||||
| Tax impact of acquisitions | — | — | — | — | |||||||||||
| Adjustment to diluted earnings per share(4) | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.01 | ) | |||||||
| Non-GAAP earnings per share, diluted | $ | 0.31 | $ | 0.22 | $ | 0.56 | $ | 0.33 | |||||||
| Weighted-average shares used to compute GAAP net loss per share, diluted | 118,681 | 115,131 | 118,111 | 114,465 | |||||||||||
| Weighted-average shares used to compute non-GAAP earnings per share, diluted | 123,056 | 120,057 | 123,161 | 119,665 | |||||||||||
________________
(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 are not material.
(3) The tax impact of the amortization of acquired intangible assets is included in the tax impact of acquisitions.
(4) 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.
| Non-GAAP Gross Profit and Non-GAAP Gross Margin | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Gross profit | $ | 172,443 | $ | 151,522 | $ | 339,472 | $ | 294,855 | |||||||
| Stock-based compensation | 3,288 | 2,906 | 6,270 | 5,531 | |||||||||||
| Amortization of acquired intangible assets | 4,760 | 3,073 | 9,429 | 6,153 | |||||||||||
| Non-GAAP gross profit | $ | 180,491 | $ | 157,501 | $ | 355,171 | $ | 306,539 | |||||||
| Gross margin | 78 | % | 78 | % | 78 | % | 77 | % | |||||||
| Non-GAAP gross margin | 82 | % | 81 | % | 81 | % | 80 | % | |||||||
| Non-GAAP Sales and Marketing Expense | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Sales and marketing expense | $ | 101,129 | $ | 97,800 | $ | 200,954 | $ | 194,991 | |||||||
| Less: Stock-based compensation | 16,276 | 16,423 | 31,576 | 30,817 | |||||||||||
| Less: Acquisition-related expenses | 49 | — | 49 | — | |||||||||||
| Non-GAAP sales and marketing expense | $ | 84,804 | $ | 81,377 | $ | 169,329 | $ | 164,174 | |||||||
| Non-GAAP sales and marketing expense % of revenue | 38 | % | 42 | % | 39 | % | 43 | % | |||||||
| Non-GAAP Research and Development Expense | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Research and development expense | $ | 45,149 | $ | 37,845 | $ | 88,876 | $ | 76,028 | |||||||
| Less: Stock-based compensation | 11,799 | 9,764 | 22,960 | 18,629 | |||||||||||
| Less: Acquisition-related expenses | — | — | (20 | ) | — | ||||||||||
| Non-GAAP research and development expense | $ | 33,350 | $ | 28,081 | $ | 65,936 | $ | 57,399 | |||||||
| Non-GAAP research and development expense % of revenue | 15 | % | 14 | % | 15 | % | 15 | % | |||||||
| Non-GAAP General and Administrative Expense | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| General and administrative expense | $ | 30,302 | $ | 26,622 | $ | 61,320 | $ | 53,737 | |||||||
| Less: Stock-based compensation | 10,035 | 8,767 | 20,311 | 17,000 | |||||||||||
| Less: Acquisition-related expenses | 714 | 30 | 895 | 130 | |||||||||||
| Non-GAAP general and administrative expense | $ | 19,553 | $ | 17,825 | $ | 40,114 | $ | 36,607 | |||||||
| Non-GAAP general and administrative expense % of revenue | 9 | % | 9 | % | 9 | % | 10 | % | |||||||
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 September 30, 2024 | Year Ending December 31, 2024 | |||||||||||||
| (in millions) | Low | High | Low | High | |||||||||||
| Forecasted loss from operations | $ | (5.6 | ) | $ | (3.6 | ) | $ | (25.1 | ) | $ | (21.1 | ) | |||
| Forecasted stock-based compensation | 41.6 | 41.6 | 164.6 | 164.6 | |||||||||||
| Forecasted acquisition-related expenses | 1.0 | 1.0 | 1.9 | 1.9 | |||||||||||
| Forecasted restructuring | — | — | 6.1 | 6.1 | |||||||||||
| Forecasted amortization of acquired intangible assets | 5.0 | 5.0 | 19.5 | 19.5 | |||||||||||
| Forecasted non-GAAP income from operations | $ | 42.0 | $ | 44.0 | $ | 167.0 | $ | 171.0 | |||||||
| Forecasted Non-GAAP Net Income and Non-GAAP Earnings Per Share | Three Months Ending September 30, 2024 | Year Ending December 31, 2024 | |||||||||||||
| (in millions, except per share data) | Low | High | Low | High | |||||||||||
| Forecasted net loss(1) | $ | (14.6 | ) | $ | (12.6 | ) | $ | (52.6 | ) | $ | (48.6 | ) | |||
| Forecasted stock-based compensation | 41.6 | 41.6 | 164.6 | 164.6 | |||||||||||
| Forecasted tax impact of stock-based compensation | 2.0 | 2.0 | 3.7 | 3.7 | |||||||||||
| Forecasted acquisition-related expenses | 1.0 | 1.0 | 1.9 | 1.9 | |||||||||||
| Forecasted restructuring | — | — | 6.1 | 6.1 | |||||||||||
| Forecasted amortization of acquired intangible assets | 5.0 | 5.0 | 19.5 | 19.5 | |||||||||||
| Forecasted tax impact of acquisitions | — | — | (0.2 | ) | (0.2 | ) | |||||||||
| Forecasted non-GAAP net income | $ | 35.0 | $ | 37.0 | $ | 143.0 | $ | 147.0 | |||||||
| Forecasted net loss per share, diluted(1) | $ | (0.12 | ) | $ | (0.11 | ) | $ | (0.44 | ) | $ | (0.41 | ) | |||
| Forecasted stock-based compensation | 0.35 | 0.35 | 1.38 | 1.38 | |||||||||||
| Forecasted tax impact of stock-based compensation | 0.02 | 0.02 | 0.03 | 0.03 | |||||||||||
| Forecasted acquisition-related expenses | 0.01 | 0.01 | 0.02 | 0.02 | |||||||||||
| Forecasted restructuring | — | — | 0.05 | 0.05 | |||||||||||
| Forecasted amortization of acquired intangible assets | 0.04 | 0.04 | 0.16 | 0.16 | |||||||||||
| Forecasted tax impact of acquisitions | — | — | — | — | |||||||||||
| Adjustment to diluted earnings per share(2) | (0.02 | ) | (0.01 | ) | (0.04 | ) | (0.04 | ) | |||||||
| Forecasted non-GAAP earnings per share, diluted | $ | 0.28 | $ | 0.30 | $ | 1.16 | $ | 1.19 | |||||||
| Forecasted weighted-average shares used to compute GAAP net loss per share, diluted | 119.0 | 119.0 | 119.0 | 119.0 | |||||||||||
| Forecasted weighted-average shares used to compute non-GAAP earnings per share, diluted | 123.0 | 123.0 | 123.5 | 123.5 | |||||||||||
________________
(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, 2024 | ||||||
| (in millions) | Low | High | |||||
| Forecasted net cash provided by operating activities | $ | 206.2 | $ | 216.2 | |||
| Forecasted purchases of property and equipment | (6.0 | ) | (6.0 | ) | |||
| Forecasted capitalized software development costs | (6.5 | ) | (6.5 | ) | |||
| Forecasted free cash flow | 193.7 | 203.7 | |||||
| Forecasted cash paid for interest and other financing costs | 31.3 | 31.3 | |||||
| Forecasted unlevered free cash flow | $ | 225.0 | $ | 235.0 | |||
FAQ
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