Tenable Announces Third Quarter 2024 Financial Results
Tenable (TENB) reported strong Q3 2024 financial results with revenue reaching $227.1 million, up 13% year-over-year. Calculated current billings increased 11% to $248.4 million. The company improved its GAAP net loss to $9.2 million ($0.08 per share) from $15.6 million in Q3 2023, while non-GAAP net income grew to $39.3 million ($0.32 per share). Operating cash flow was $54.6 million, and the company expanded its stock repurchase program by $200 million. Tenable added 386 new enterprise platform customers and 60 net new six-figure customers during the quarter.
Tenable (TENB) ha riportato risultati finanziari positivi per il terzo trimestre del 2024, con ricavi che hanno raggiunto $227,1 milioni, in aumento del 13% rispetto all'anno precedente. I ricavi correnti calcolati sono aumentati dell'11% a $248,4 milioni. L'azienda ha migliorato la sua perdita netta GAAP a $9,2 milioni ($0,08 per azione), rispetto ai $15,6 milioni del terzo trimestre del 2023, mentre il reddito netto non GAAP è cresciuto a $39,3 milioni ($0,32 per azione). Il flusso di cassa operativo è stato di $54,6 milioni e l'azienda ha ampliato il suo programma di riacquisto di azioni di $200 milioni. Tenable ha acquisito 386 nuovi clienti della piattaforma enterprise e 60 nuovi clienti con fatturato sei cifre durante il trimestre.
Tenable (TENB) reportó sólidos resultados financieros en el tercer trimestre de 2024, con ingresos que alcanzaron $227.1 millones, un aumento del 13% interanual. Las facturaciones actuales calculadas aumentaron un 11% hasta $248.4 millones. La empresa mejoró su pérdida neta GAAP a $9.2 millones ($0.08 por acción), frente a los $15.6 millones en el tercer trimestre de 2023, mientras que el ingreso neto no GAAP creció a $39.3 millones ($0.32 por acción). El flujo de caja operativo fue de $54.6 millones, y la compañía amplió su programa de recompra de acciones en $200 millones. Tenable agregó 386 nuevos clientes en la plataforma empresarial y 60 nuevos clientes de seis cifras durante el trimestre.
테너블 (TENB)는 2024년 3분기 강력한 재무 결과를 보고했으며, 매출은 $227.1 백만에 달하며 전년 대비 13% 증가했습니다. 계산된 현재 청구액은 11% 증가하여 $248.4 백만에 도달했습니다. 회사는 GAAP 기준 순손실을 9.2 백만 달러($0.08 주당)로 개선했으며, 2023년 3분기의 15.6 백만 달러에서 감소했습니다. 또한 비GAAP 기준 순이익은 39.3 백만 달러($0.32 주당)로 증가했습니다. 운영 현금 흐름은 54.6 백만 달러였고, 회사는 2억 달러 규모의 자사주 매입 프로그램을 확대했습니다. 테너블은 분기 동안 386개의 신규 엔터프라이즈 플랫폼 고객과 60개의 새로운 6자리 고객을 추가했습니다.
Tenable (TENB) a annoncé des résultats financiers solides pour le troisième trimestre 2024, avec des revenus atteignant 227,1 millions de dollars, soit une augmentation de 13 % par rapport à l'année précédente. Les facturations courantes calculées ont augmenté de 11 % pour atteindre 248,4 millions de dollars. L'entreprise a amélioré sa perte nette GAAP à 9,2 millions de dollars (0,08 $ par action) contre 15,6 millions de dollars au troisième trimestre 2023, tandis que le revenu net non GAAP a augmenté à 39,3 millions de dollars (0,32 $ par action). Le flux de trésorerie d'exploitation s'élevait à 54,6 millions de dollars et l'entreprise a élargi son programme de rachat d'actions de 200 millions de dollars. Tenable a ajouté 386 nouveaux clients de la plateforme d'entreprise et 60 nouveaux clients à six chiffres au cours du trimestre.
Tenable (TENB) hat starke Finanzzahlen für das dritte Quartal 2024 gemeldet, mit einem Umsatz von 227,1 Millionen US-Dollar, was einem Anstieg von 13% im Vergleich zum Vorjahr entspricht. Die berechneten aktuellen Rechnungsstellungen erhöhten sich um 11% auf 248,4 Millionen US-Dollar. Das Unternehmen verbesserte seinen GAAP Nettoverlust auf 9,2 Millionen US-Dollar (0,08 US-Dollar pro Aktie) gegenüber 15,6 Millionen US-Dollar im dritten Quartal 2023, während das nicht-GAAP Nettoergebnis auf 39,3 Millionen US-Dollar (0,32 US-Dollar pro Aktie) anstieg. Der operative Cashflow betrug 54,6 Millionen US-Dollar, und das Unternehmen erweiterte sein Aktienrückkaufprogramm um 200 Millionen US-Dollar. Tenable gewann im Quartal 386 neue Kunden für die Unternehmensplattform und 60 neue Kunden mit sechsstelligen Beträgen.
- Revenue growth of 13% YoY to $227.1 million
- Non-GAAP income from operations increased to $45.0 million from $36.6 million YoY
- Operating cash flow improved to $54.6 million from $42.4 million YoY
- Added 386 new enterprise platform customers and 60 net new six-figure customers
- $200 million expansion of stock repurchase program
- GAAP operating loss of $2.1 million
- GAAP net loss of $9.2 million
- Billings growth of 11% YoY shows slight deceleration compared to revenue growth
Insights
Tenable delivered a strong Q3 with notable improvements across key metrics.
The
Forward guidance suggests continued momentum, projecting Q4 revenue of
- Revenue of
$227.1 million , up13% year-over-year. - Calculated current billings of
$248.4 million , up11% year-over-year. - GAAP operating margin of (1)%; Non-GAAP operating margin of
20% . - Net cash provided by operating activities of
$54.6 million ; Unlevered free cash flow of$60.8 million . $200 million expansion of our stock repurchase program.
COLUMBIA, Md., Oct. 30, 2024 (GLOBE NEWSWIRE) -- Tenable Holdings, Inc. ("Tenable") (Nasdaq: TENB), the exposure management company, today announced financial results for the quarter ended September 30, 2024.
"We delivered strong results in Q3, surpassing expectations on both the top and bottom line," said Amit Yoran, Chairman and CEO of Tenable. "Cloud Security and Tenable One, our exposure management platform, continue to drive demand as customers increasingly focus on securing critical cloud infrastructure and assessing their overall exposures in a hybrid world."
Third Quarter 2024 Financial Highlights
- Revenue was
$227.1 million , a13% increase year-over-year. - Calculated current billings was
$248.4 million , an11% increase year-over-year. - GAAP loss from operations was
$2.1 million , compared to$7.9 million in the third quarter of 2023. - Non-GAAP income from operations was
$45.0 million , compared to$36.6 million in the third quarter of 2023. - GAAP net loss was
$9.2 million , compared to$15.6 million in the third quarter of 2023. - GAAP net loss per share was
$0.08 , compared to$0.13 in the third quarter of 2023. - Non-GAAP net income was
$39.3 million , compared to$27.7 million in the third quarter of 2023. - Non-GAAP diluted earnings per share was
$0.32 , compared to$0.23 in the third quarter of 2023. - Cash and cash equivalents and short-term investments were
$548.4 million at September 30, 2024, compared to$474.0 million at December 31, 2023. - Net cash provided by operating activities was
$54.6 million , compared to$42.4 million in the third quarter of 2023. - Unlevered free cash flow was
$60.8 million , compared to$48.2 million in the third quarter of 2023.
Recent Business Highlights
- Added 386 new enterprise platform customers and 60 net new six-figure customers.
- Announced that our Board of Directors recently approved the expansion of our existing stock repurchase program, raising the existing authorization by
$200 million . - Released AI Aware, advanced detection capabilities designed to rapidly surface artificial intelligence solutions, vulnerabilities and weaknesses.
- Introduced Vulnerability Intelligence and Exposure Response, two powerful context-driven prioritization and response features that are designed to deliver actionable intelligence across IT and cloud environments.
- Extended exposure management capabilities to cloud data and AI by adding new data security posture management (DSPM) and artificial intelligence security posture management (AI-SPM) capabilities for Tenable Cloud Security.
- Launched Tenable Enclave Security, a solution that supports the needs of customers operating in highly secure environments.
- Recognized as the top performer in cloud security in the 2024 CRN Annual Report Card Awards.
Financial Outlook
For the fourth quarter of 2024, we currently expect:
- Revenue in the range of
$229.0 million to$233.0 million . - Non-GAAP income from operations in the range of
$47.0 million to$49.0 million . - Non-GAAP net income in the range of
$42.0 million to$44.0 million , assuming interest expense of$7.8 million , interest income of$6.0 million and a provision for income taxes of$3.1 million . - Non-GAAP diluted earnings per share in the range of
$0.33 t o$0.35 . - 125.5 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
$893.3 million to$897.3 million . - Non-GAAP income from operations in the range of
$171.8 million to$173.8 million . - Non-GAAP net income in the range of
$149.9 million to$151.9 million , assuming interest expense of$32.1 million , interest income of$23.5 million and a provision for income taxes of$12.3 million . - Non-GAAP diluted earnings per share in the range of
$1.21 t o$1.23 . - 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 October 30, 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, 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, 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 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 September 30, | Nine Months Ended September 30, | ||||||||||||||
| (in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Revenue | $ | 227,088 | $ | 201,529 | $ | 664,290 | $ | 585,404 | |||||||
| Cost of revenue(1) | 50,499 | 45,754 | 148,229 | 134,774 | |||||||||||
| Gross profit | 176,589 | 155,775 | 516,061 | 450,630 | |||||||||||
| Operating expenses: | |||||||||||||||
| Sales and marketing(1) | 99,083 | 94,759 | 300,037 | 289,750 | |||||||||||
| Research and development(1) | 48,020 | 37,052 | 136,896 | 113,080 | |||||||||||
| General and administrative(1) | 31,569 | 31,877 | 92,889 | 85,614 | |||||||||||
| Restructuring | — | — | 6,070 | — | |||||||||||
| Total operating expenses | 178,672 | 163,688 | 535,892 | 488,444 | |||||||||||
| Loss from operations | (2,083 | ) | (7,913 | ) | (19,831 | ) | (37,814 | ) | |||||||
| Interest income | 5,989 | 7,662 | 17,587 | 19,323 | |||||||||||
| Interest expense | (8,148 | ) | (8,119 | ) | (24,333 | ) | (23,208 | ) | |||||||
| Other income (expense), net | 359 | (6,502 | ) | (858 | ) | (7,993 | ) | ||||||||
| Loss before income taxes | (3,883 | ) | (14,872 | ) | (27,435 | ) | (49,692 | ) | |||||||
| Provision for income taxes | 5,328 | 693 | 10,734 | 6,944 | |||||||||||
| Net loss | $ | (9,211 | ) | $ | (15,565 | ) | $ | (38,169 | ) | $ | (56,636 | ) | |||
| Net loss per share, basic and diluted | $ | (0.08 | ) | $ | (0.13 | ) | $ | (0.32 | ) | $ | (0.49 | ) | |||
| Weighted-average shares used to compute net loss per share, basic and diluted | 119,169 | 115,954 | 118,466 | 114,967 | |||||||||||
_______________
(1) Includes stock-based compensation as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Cost of revenue | $ | 3,216 | $ | 3,011 | $ | 9,486 | $ | 8,542 | |||
| Sales and marketing | 15,941 | 15,805 | 47,517 | 46,622 | |||||||
| Research and development | 12,435 | 9,242 | 35,395 | 27,871 | |||||||
| General and administrative | 10,092 | 8,777 | 30,403 | 25,777 | |||||||
| Total stock-based compensation | $ | 41,684 | $ | 36,835 | $ | 122,801 | $ | 108,812 | |||
| TENABLE HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS | |||||||
| September 30, 2024 | December 31, 2023 | ||||||
| (in thousands, except per share data) | (unaudited) | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 312,207 | $ | 237,132 | |||
| Short-term investments | 236,242 | 236,840 | |||||
| Accounts receivable (net of allowance for doubtful accounts of | 192,648 | 220,060 | |||||
| Deferred commissions | 49,858 | 49,559 | |||||
| Prepaid expenses and other current assets | 52,575 | 61,882 | |||||
| Total current assets | 843,530 | 805,473 | |||||
| Property and equipment, net | 39,780 | 45,436 | |||||
| Deferred commissions (net of current portion) | 64,405 | 72,394 | |||||
| Operating lease right-of-use assets | 32,127 | 34,835 | |||||
| Acquired intangible assets, net | 99,474 | 107,017 | |||||
| Goodwill | 541,292 | 518,539 | |||||
| Other assets | 13,811 | 23,177 | |||||
| Total assets | $ | 1,634,419 | $ | 1,606,871 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued expenses | $ | 17,833 | $ | 16,941 | |||
| Accrued compensation | 43,040 | 66,492 | |||||
| Deferred revenue | 583,940 | 580,779 | |||||
| Operating lease liabilities | 6,099 | 5,971 | |||||
| Other current liabilities | 6,205 | 5,655 | |||||
| Total current liabilities | 657,117 | 675,838 | |||||
| Deferred revenue (net of current portion) | 163,512 | 169,718 | |||||
| Term loan, net of issuance costs (net of current portion) | 357,334 | 359,281 | |||||
| Operating lease liabilities (net of current portion) | 43,706 | 48,058 | |||||
| Other liabilities | 8,195 | 7,632 | |||||
| Total liabilities | 1,229,864 | 1,260,527 | |||||
| Stockholders’ equity: | |||||||
| Common stock (par value: | 1,213 | 1,175 | |||||
| Additional paid-in capital | 1,330,517 | 1,185,100 | |||||
| Treasury stock (at cost: 1,471 and 356 shares at September 30, 2024 and December 31, 2023, respectively) | (64,925 | ) | (14,934 | ) | |||
| Accumulated other comprehensive income | 954 | 38 | |||||
| Accumulated deficit | (863,204 | ) | (825,035 | ) | |||
| Total stockholders’ equity | 404,555 | 346,344 | |||||
| Total liabilities and stockholders’ equity | $ | 1,634,419 | $ | 1,606,871 | |||
| TENABLE HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | |||||||
| Nine Months Ended September 30, | |||||||
| (in thousands) | 2024 | 2023 | |||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (38,169 | ) | $ | (56,636 | ) | |
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 24,434 | 18,900 | |||||
| Stock-based compensation | 122,801 | 108,812 | |||||
| Net accretion of discounts and amortization of premiums on short-term investments | (6,141 | ) | (5,903 | ) | |||
| Amortization of debt issuance costs | 1,003 | 941 | |||||
| (Gain) loss on other investments | (1,452 | ) | 5,000 | ||||
| Restructuring | 4,528 | — | |||||
| Other | 4,128 | 1,800 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | 26,911 | 9,084 | |||||
| Prepaid expenses and other assets | 29,868 | 17,524 | |||||
| Accounts payable, accrued expenses and accrued compensation | (22,921 | ) | 447 | ||||
| Deferred revenue | (3,153 | ) | 16,856 | ||||
| Other current and noncurrent liabilities | (5,480 | ) | (5,475 | ) | |||
| Net cash provided by operating activities | 136,357 | 111,350 | |||||
| Cash flows from investing activities: | |||||||
| Purchases of property and equipment | (1,924 | ) | (1,299 | ) | |||
| Capitalized software development costs | (5,930 | ) | (4,707 | ) | |||
| Purchases of short-term investments | (227,210 | ) | (217,239 | ) | |||
| Sales and maturities of short-term investments | 234,865 | 242,864 | |||||
| Proceeds from other investments | 3,512 | — | |||||
| Purchases of other investments | (1,250 | ) | — | ||||
| Business combinations, net of cash acquired | (29,162 | ) | — | ||||
| Net cash (used in) provided by investing activities | (27,099 | ) | 19,619 | ||||
| Cash flows from financing activities: | |||||||
| Payments on term loan | (2,813 | ) | (2,813 | ) | |||
| Proceeds from loan agreement | — | 424 | |||||
| Proceeds from stock issued in connection with the employee stock purchase plan | 16,262 | 16,224 | |||||
| Proceeds from the exercise of stock options | 4,798 | 2,421 | |||||
| Purchase of treasury stock | (49,991 | ) | — | ||||
| Other financing activities | — | (213 | ) | ||||
| Net cash (used in) provided by financing activities | (31,744 | ) | 16,043 | ||||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | (2,439 | ) | (2,562 | ) | |||
| Net increase in cash and cash equivalents and restricted cash | 75,075 | 144,450 | |||||
| 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 | $ | 312,207 | $ | 445,316 | |||
| TENABLE HOLDINGS, INC. REVENUE COMPONENTS AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited) | |||||||||||
| Revenue | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||
| Subscription revenue | $ | 208,554 | $ | 183,268 | $ | 608,727 | $ | 531,133 | |||
| Perpetual license and maintenance revenue | 11,769 | 12,200 | 35,941 | 36,535 | |||||||
| Professional services and other revenue | 6,765 | 6,061 | 19,622 | 17,736 | |||||||
| Revenue(1) | $ | 227,088 | $ | 201,529 | $ | 664,290 | $ | 585,404 | |||
_______________
(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 September 30, | Nine Months Ended September 30, | |||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Revenue | $ | 227,088 | $ | 201,529 | $ | 664,290 | $ | 585,404 | |||||||
| Deferred revenue (current), end of period | 583,940 | 518,372 | 583,940 | 518,372 | |||||||||||
| Deferred revenue (current), beginning of period(1) | (562,587 | ) | (495,199 | ) | (580,887 | ) | (502,115 | ) | |||||||
| Calculated current billings | $ | 248,441 | $ | 224,702 | $ | 667,343 | $ | 601,661 | |||||||
________________
(1) Deferred revenue (current), beginning of period for the nine months ended September 30, 2024 includes
| Remaining Performance Obligations | September 30, | ||||
| (in thousands) | 2024 | 2023 | |||
| Remaining performance obligations, short-term | $ | 592,351 | $ | 528,367 | |
| Remaining performance obligations, long-term | 179,210 | 168,817 | |||
| Remaining performance obligations | $ | 771,561 | $ | 697,184 | |
| Free Cash Flow and Unlevered Free Cash Flow | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net cash provided by operating activities | $ | 54,607 | $ | 42,411 | $ | 136,357 | $ | 111,350 | |||||||
| Purchases of property and equipment | (733 | ) | (201 | ) | (1,924 | ) | (1,299 | ) | |||||||
| Capitalized software development costs | (1,163 | ) | (1,894 | ) | (5,930 | ) | (4,707 | ) | |||||||
| Free cash flow(1) | 52,711 | 40,316 | 128,503 | 105,344 | |||||||||||
| Cash paid for interest and other financing costs | 8,055 | 7,843 | 23,505 | 26,786 | |||||||||||
| Unlevered free cash flow(1) | $ | 60,766 | $ | 48,159 | $ | 152,008 | $ | 132,130 | |||||||
________________
(1) Free cash flow and unlevered free cash flow for the periods presented were impacted by:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Employee stock purchase plan activity | $ | (3,653 | ) | $ | (2,236 | ) | $ | (6,283 | ) | $ | (2,507 | ) | |||
| Acquisition-related expenses | (663 | ) | (571 | ) | (1,326 | ) | (830 | ) | |||||||
| Restructuring | (492 | ) | — | (5,911 | ) | — | |||||||||
| Non-GAAP Income from Operations and Non-GAAP Operating Margin | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Loss from operations | $ | (2,083 | ) | $ | (7,913 | ) | $ | (19,831 | ) | $ | (37,814 | ) | |||
| Stock-based compensation | 41,684 | 36,835 | 122,801 | 108,812 | |||||||||||
| Acquisition-related expenses | 360 | 4,598 | 1,284 | 4,728 | |||||||||||
| Restructuring | — | — | 6,070 | — | |||||||||||
| Amortization of acquired intangible assets | 5,014 | 3,055 | 14,443 | 9,208 | |||||||||||
| Non-GAAP income from operations | $ | 44,975 | $ | 36,575 | $ | 124,767 | $ | 84,934 | |||||||
| Operating margin | (1 | )% | `(4 | )% | (3 | )% | (6 | )% | |||||||
| Non-GAAP operating margin | 20 | % | 18 | % | 19 | % | 15 | % | |||||||
| Non-GAAP Net Income and Non-GAAP Earnings Per Share | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| (in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net loss | $ | (9,211 | ) | $ | (15,565 | ) | $ | (38,169 | ) | $ | (56,636 | ) | |||
| Stock-based compensation | 41,684 | 36,835 | 122,801 | 108,812 | |||||||||||
| Tax impact of stock-based compensation(1) | 1,528 | (1,207 | ) | 1,626 | 1,046 | ||||||||||
| Acquisition-related expenses(2) | 360 | 4,598 | 1,284 | 4,728 | |||||||||||
| Restructuring(2) | — | — | 6,070 | — | |||||||||||
| Amortization of acquired intangible assets(3) | 5,014 | 3,055 | 14,443 | 9,208 | |||||||||||
| Tax impact of acquisitions | (52 | ) | (48 | ) | (130 | ) | (161 | ) | |||||||
| Non-GAAP net income | $ | 39,323 | $ | 27,668 | $ | 107,925 | $ | 66,997 | |||||||
| Net loss per share, diluted | $ | (0.08 | ) | $ | (0.13 | ) | $ | (0.32 | ) | $ | (0.49 | ) | |||
| Stock-based compensation | 0.35 | 0.32 | 1.04 | 0.94 | |||||||||||
| Tax impact of stock-based compensation(1) | 0.01 | (0.01 | ) | 0.01 | 0.01 | ||||||||||
| Acquisition-related expenses(2) | 0.01 | 0.04 | 0.01 | 0.04 | |||||||||||
| Restructuring(2) | — | — | 0.05 | — | |||||||||||
| Amortization of acquired intangible assets(3) | 0.04 | 0.02 | 0.12 | 0.08 | |||||||||||
| Tax impact of acquisitions | — | — | — | — | |||||||||||
| Adjustment to diluted earnings per share(4) | (0.01 | ) | (0.01 | ) | (0.03 | ) | (0.02 | ) | |||||||
| Non-GAAP earnings per share, diluted | $ | 0.32 | $ | 0.23 | $ | 0.88 | $ | 0.56 | |||||||
| Weighted-average shares used to compute GAAP net loss per share, diluted | 119,169 | 115,954 | 118,466 | 114,967 | |||||||||||
| Weighted-average shares used to compute non-GAAP earnings per share, diluted | 123,288 | 121,473 | 123,206 | 120,273 | |||||||||||
________________
(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 September 30, | Nine Months Ended September 30, | |||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Gross profit | $ | 176,589 | $ | 155,775 | $ | 516,061 | $ | 450,630 | |||||||
| Stock-based compensation | 3,216 | 3,011 | 9,486 | 8,542 | |||||||||||
| Amortization of acquired intangible assets | 5,014 | 3,055 | 14,443 | 9,208 | |||||||||||
| Non-GAAP gross profit | $ | 184,819 | $ | 161,841 | $ | 539,990 | $ | 468,380 | |||||||
| Gross margin | 78 | % | 77 | % | 78 | % | 77 | % | |||||||
| Non-GAAP gross margin | 81 | % | 80 | % | 81 | % | 80 | % | |||||||
| Non-GAAP Sales and Marketing Expense | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Sales and marketing expense | $ | 99,083 | $ | 94,759 | $ | 300,037 | $ | 289,750 | |||||||
| Less: Stock-based compensation | 15,941 | 15,805 | 47,517 | 46,622 | |||||||||||
| Less: Acquisition-related expenses | 3 | — | 52 | — | |||||||||||
| Non-GAAP sales and marketing expense | $ | 83,139 | $ | 78,954 | $ | 252,468 | $ | 243,128 | |||||||
| Non-GAAP sales and marketing expense % of revenue | 37 | % | 39 | % | 38 | % | 42 | % | |||||||
| Non-GAAP Research and Development Expense | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Research and development expense | $ | 48,020 | $ | 37,052 | $ | 136,896 | $ | 113,080 | |||||||
| Less: Stock-based compensation | 12,435 | 9,242 | 35,395 | 27,871 | |||||||||||
| Less: Acquisition-related expenses | — | — | (20 | ) | — | ||||||||||
| Non-GAAP research and development expense | $ | 35,585 | $ | 27,810 | $ | 101,521 | $ | 85,209 | |||||||
| Non-GAAP research and development expense % of revenue | 16 | % | 14 | % | 15 | % | 15 | % | |||||||
| Non-GAAP General and Administrative Expense | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| General and administrative expense | $ | 31,569 | $ | 31,877 | $ | 92,889 | $ | 85,614 | |||||||
| Less: Stock-based compensation | 10,092 | 8,777 | 30,403 | 25,777 | |||||||||||
| Less: Acquisition-related expenses | 357 | 4,598 | 1,252 | 4,728 | |||||||||||
| Non-GAAP general and administrative expense | $ | 21,120 | $ | 18,502 | $ | 61,234 | $ | 55,109 | |||||||
| 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 December 31, 2024 | Year Ending December 31, 2024 | |||||||||||
| (in millions) | Low | High | Low | High | |||||||||
| Forecasted income (loss) from operations | $ | 0.6 | $ | 2.6 | $ | (19.2 | ) | $ | (17.2 | ) | |||
| Forecasted stock-based compensation | 41.3 | 41.3 | 164.1 | 164.1 | |||||||||
| Forecasted acquisition-related expenses | — | — | 1.3 | 1.3 | |||||||||
| Forecasted restructuring | — | — | 6.1 | 6.1 | |||||||||
| Forecasted amortization of acquired intangible assets | 5.1 | 5.1 | 19.5 | 19.5 | |||||||||
| Forecasted non-GAAP income from operations | $ | 47.0 | $ | 49.0 | $ | 171.8 | $ | 173.8 | |||||
| Forecasted Non-GAAP Net Income and Non-GAAP Earnings Per Share | Three Months Ending December 31, 2024 | Year Ending December 31, 2024 | |||||||||||||
| (in millions, except per share data) | Low | High | Low | High | |||||||||||
| Forecasted net loss(1) | $ | (6.2 | ) | $ | (4.2 | ) | $ | (44.4 | ) | $ | (42.4 | ) | |||
| Forecasted stock-based compensation | 41.3 | 41.3 | 164.1 | 164.1 | |||||||||||
| Forecasted tax impact of stock-based compensation | 1.9 | 1.9 | 3.5 | 3.5 | |||||||||||
| Forecasted acquisition-related expenses | — | — | 1.3 | 1.3 | |||||||||||
| Forecasted restructuring | — | — | 6.1 | 6.1 | |||||||||||
| Forecasted amortization of acquired intangible assets | 5.1 | 5.1 | 19.5 | 19.5 | |||||||||||
| Forecasted tax impact of acquisitions | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.2 | ) | |||||||
| Forecasted non-GAAP net income | $ | 42.0 | $ | 44.0 | $ | 149.9 | $ | 151.9 | |||||||
| Forecasted net loss per share, diluted(1) | $ | (0.05 | ) | $ | (0.04 | ) | $ | (0.37 | ) | $ | (0.36 | ) | |||
| Forecasted stock-based compensation | 0.34 | 0.34 | 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 | |||||||||||
| 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 | ) | (0.05 | ) | (0.04 | ) | |||||||
| Forecasted non-GAAP earnings per share, diluted | $ | 0.33 | $ | 0.35 | $ | 1.21 | $ | 1.23 | |||||||
| Forecasted weighted-average shares used to compute GAAP net loss per share, diluted | 120.0 | 120.0 | 119.0 | 119.0 | |||||||||||
| Forecasted weighted-average shares used to compute non-GAAP earnings per share, diluted | 125.5 | 125.5 | 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 | $ | 206.7 | $ | 216.7 | |||
| Forecasted purchases of property and equipment | (5.9 | ) | (5.9 | ) | |||
| Forecasted capitalized software development costs | (6.7 | ) | (6.7 | ) | |||
| Forecasted free cash flow | 194.1 | 204.1 | |||||
| Forecasted cash paid for interest and other financing costs | 30.9 | 30.9 | |||||
| Forecasted unlevered free cash flow | $ | 225.0 | $ | 235.0 | |||
FAQ
What was Tenable's (TENB) revenue in Q3 2024?
How many new enterprise customers did Tenable (TENB) add in Q3 2024?
What is Tenable's (TENB) Q4 2024 revenue guidance?
How much did Tenable (TENB) expand its stock repurchase program in Q3 2024?
