Customer Base and Market Position - As of December 31, 2024, the company had approximately 44,000 customers, including about 65% of the Fortune 500 and 50% of the Global 2000[30]. - The company aims to expand its market leadership in exposure management and capture large market opportunities in cloud, identity, and operational technology (OT)[25]. - The company plans to continue acquiring new enterprise platform customers, leveraging expanded product capabilities and investments in sales and marketing[26]. - The company’s sales strategy includes both direct-touch and low-touch approaches, utilizing a network of channel partners for broader geographic reach[31]. - Revenue derived from the channel network comprised 94% of total revenue in 2024, compared to 93% in 2023[443]. Product and Technology Development - The Tenable One platform integrates various products, providing a unified view of risk across IT assets, cloud resources, containers, web applications, and identity systems[18]. - The company intends to invest in its technology platform to innovate and broaden exposure management solutions, enhancing analytical capabilities over time[34]. - The company continues to invest in research and development to enhance its platform offerings and maintain competitive positioning[37]. - The Nessus product line is one of the most widely deployed vulnerability assessment solutions, providing a continuous feedback loop of data and insights[21]. Financial Performance - Total revenue for the year ended December 31, 2024, was $900,021,000, representing a 12.7% increase from $798,710,000 in 2023[384]. - Gross profit for 2024 was $700,353,000, up from $615,133,000 in 2023, indicating a gross margin improvement[384]. - Net loss for 2024 decreased to $36,301,000 from $78,284,000 in 2023, showing a significant reduction in losses[384]. - Cash and cash equivalents increased to $328,647,000 in 2024 from $237,132,000 in 2023, reflecting improved liquidity[382]. - Total assets grew to $1,742,119,000 in 2024, compared to $1,606,871,000 in 2023, indicating overall growth in the company's financial position[382]. Revenue Recognition and Deferred Revenue - Subscription revenue for 2024 reached $824,659,000, an increase of 13.8% from $725,013,000 in 2023[442]. - Deferred revenue increased to $650,372,000 in 2024 from $580,779,000 in 2023, suggesting strong future revenue recognition potential[382]. - Remaining performance obligations totaled $867,526,000 as of December 31, 2024, an increase from $775,008,000 in 2023[445]. - Deferred revenue recognized in 2024 was $581.8 million, up from $502.8 million in 2023[444]. Cash Flow and Liquidity - Cash flows from operating activities increased to $217,476 thousand in 2024, up from $149,855 thousand in 2023, representing a growth of approximately 45.2%[392]. - Cash and cash equivalents at the end of 2024 were $328,647 thousand, up from $237,132 thousand at the end of 2023, indicating an increase of approximately 38.6%[392]. - The company had $328.6 million in cash and cash equivalents and $248.5 million in short-term investments as of December 31, 2024[355]. Investments and Acquisitions - The company plans to explore acquisition opportunities to enhance the functionality of its platform offerings[34]. - In 2024, the company recorded a total cash consideration of $29.2 million for the acquisition of Eureka Security, Inc. and $243.8 million for the acquisition of Ermetic, including $243.3 million in cash[457][458]. - The company recognized acquisition-related expenses of $1.9 million in 2024, down from $9.5 million in 2023[461]. Tax and Deferred Tax Assets - The total provision for income taxes in 2024 was $17.415 million, compared to $10.883 million in 2023[492]. - As of December 31, 2024, the company reported net operating loss (NOL) carryforwards of $353.9 million for federal, $239.3 million for state, and $468.6 million for foreign tax purposes, with expirations beginning in 2030[496]. - Total deferred tax assets increased to $282.1 million in 2024 from $263.9 million in 2023, primarily driven by increases in stock-based compensation and capitalized research and development[496]. Employee and Operational Metrics - The company employs 1,872 individuals, with 854 located outside the United States, and has not experienced any work stoppages[49]. - Stock-based compensation expenses rose to $163,515 thousand in 2024, compared to $145,327 thousand in 2023, marking an increase of about 12.5%[392]. Environmental and Social Responsibility - The company has implemented environmental stewardship practices, including recycling and using renewable energy through AWS[57].

Core Insights - Tenable has launched new capabilities, Identity 360 and Exposure Center, to address identity sprawl and enhance visibility into identity risks, enabling organizations to prevent identity-based attacks [1][2]. Group 1: Identity Management Challenges - Identity management has become fragmented, resulting in identity sprawl, which complicates risk detection and weakens access controls, increasing the threat of privilege escalation and lateral movement [2]. - Approximately 75% of organizations manage two or more identity solutions, contributing to increased complexity in identity security [3]. Group 2: New Product Features - Tenable Identity Exposure continuously monitors for misconfigurations, attack paths, and security weaknesses, allowing organizations to proactively reduce risk and enhance their security posture [4]. - The new capabilities provide a unified view of accounts, weaknesses, entitlements, roles, groups, and relationships across identity providers, consolidating this information into comprehensive identity profiles for streamlined risk management [5]. - Centralized weakness management allows for the consolidation of identity-related weaknesses into a single interface, with detailed remediation steps and one-click PowerShell scripts for action [5]. - An AI-driven Identity Asset Exposure Score (AES) helps identify critical identity weaknesses, allowing organizations to focus remediation efforts on the highest-priority threats [5].

Group 1: Market Overview - Investors have heavily invested in major AI companies, contributing to the S&P 500's annual gains exceeding 25% for two consecutive years, a performance last seen in 1997 and 1998 [1] - There are overlooked AI opportunities in smaller companies, such as Tenable, which is a leader in vulnerability management within the cybersecurity sector [2] Group 2: Company Profile - Tenable specializes in vulnerability management, identifying weaknesses in networks to prevent exploitation, which is crucial in the digital age where businesses face constant cyber threats [3] - The Nessus platform is Tenable's flagship tool, recognized for its accuracy and widespread deployment, with over 2 million downloads [4] Group 3: Product Offerings - Tenable's cloud platform includes AI Security Posture Management (AI-SPM), designed to secure data and identify vulnerabilities in cloud-based AI development platforms [5][6] - Larger clients can utilize Tenable One, a comprehensive platform that extends AI-powered protection across all IT assets, featuring tools like ExposureAI that analyze data from 1 trillion unique threats [7] Group 4: Financial Performance - In 2024, Tenable achieved a record revenue of $900 million, marking a 13% increase from the previous year, although this growth rate decelerated from 17% in 2023 [8] - The company reduced growth-oriented spending, resulting in a 5.9% increase in operating expenses and a significant reduction in net loss to $36.3 million, down 53% from $78.2 million in 2023 [9] - On a non-GAAP basis, Tenable reported a profit of $158.6 million, a 63% increase compared to 2023 [10] Group 5: Valuation and Market Potential - Tenable's price-to-sales (P/S) ratio is 5.3, which is lower than many cybersecurity peers, despite its slower revenue growth compared to companies like CrowdStrike and Zscaler [12] - Tenable's management estimates its addressable market at $33 billion, indicating significant long-term growth potential, especially as AI adoption increases [14]

Tenable Announces Fourth Quarter and Full Year 2024 Financial Results COLUMBIA, Maryland, February 5, 2025 — 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 b ...

Core Insights - Tenable Holdings, Inc. has successfully completed the acquisition of Vulcan Cyber Ltd., enhancing its Exposure Management platform to provide better visibility, prioritization, and remediation across the attack surface [1][2] - The integration of Vulcan Cyber is expected to accelerate Tenable's exposure management vision, aiming to set a new industry standard for risk mitigation accuracy [2] Company Overview - Tenable is recognized as an exposure management company that addresses cybersecurity gaps, protecting business value, reputation, and trust for approximately 44,000 customers globally [3] Financial Outlook - For Q1 2025, Tenable anticipates revenue between $233.0 million and $235.0 million, with non-GAAP income from operations projected between $40.0 million and $42.0 million [5] - For the year ending December 31, 2025, revenue is expected to be in the range of $975.0 million to $985.0 million, with non-GAAP net income projected between $175.0 million and $185.0 million [5][12] - The forecasted unlevered free cash flow for the year ending December 31, 2025, is estimated to be between $265.0 million and $275.0 million [12]

Group 1 - Tenable Holdings, Inc. is a cybersecurity firm focused on exposure management, identifying and addressing potential security issues before they escalate into significant threats across IT, cloud, and critical infrastructure environments [1] - The primary product offered by Tenable is Tenable.io, which plays a crucial role in the company's cybersecurity solutions [1] Group 2 - Grassroots Trading emphasizes providing objective and unbiased research, concentrating on small- to mid-cap companies while also identifying opportunities in larger firms [1]

Tenable Holdings, Inc. (NASDAQ:TENB) Q4 2024 Earnings Conference Call February 5, 2025 4:30 PM ET Company Participants Erin Karney - Vice President, Investor Relations Steve Vintz - Co-Chief Executive Officer and CFO Mark Thurmond - Co-Chief Executive Officer and COO Conference Call Participants Saket Kalia - Barclays Brian Essex - JPMorgan Hamza Fodderwala - Morgan Stanley Shaul Eyal - TD Cowen Gary Powell - BTIG Rudy Kessinger - D.A. Davidson Roger Boyd - UBS Joe Vandrick - Scotiabank Patrick O’Neill - Wo ...

Financial Performance - Tenable reported revenue of $235.73 million for the quarter ended December 2024, reflecting a year-over-year increase of 10.5% [1] - Earnings per share (EPS) for the quarter was $0.41, up from $0.25 in the same quarter last year, representing a significant increase [1] - The reported revenue exceeded the Zacks Consensus Estimate of $231.82 million by 1.69%, while the EPS surpassed the consensus estimate of $0.34 by 20.59% [1] Key Metrics - Current Billings were reported at $302.16 million, exceeding the average estimate of $295.71 million from seven analysts [4] - Subscription revenue reached $215.93 million, surpassing the six-analyst average estimate of $212.78 million, with a year-over-year growth of 11.4% [4] - Revenue from professional services and other was $7.97 million, exceeding the average estimate of $6.94 million, marking a year-over-year increase of 10.2% [4] - Revenue from perpetual license and maintenance was $11.83 million, slightly below the estimated $11.89 million, showing a decline of 3% compared to the previous year [4] Stock Performance - Tenable's shares have returned +10.4% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - Tenable reported quarterly earnings of $0.41 per share, exceeding the Zacks Consensus Estimate of $0.34 per share, and up from $0.25 per share a year ago, representing an earnings surprise of 20.59% [1] - The company achieved revenues of $235.73 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.69% and increasing from $213.31 million year-over-year [2] - Tenable has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $235.68 million, and for the current fiscal year, it is $1.44 on revenues of $982.4 million [7] - The estimate revisions trend for Tenable is favorable, contributing to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Internet - Software industry, to which Tenable belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Insights - Tenable Holdings, Inc. reported strong financial results for Q4 and the full year 2024, exceeding expectations in key metrics such as revenue, operating income, and unlevered free cash flow [2][5][6]. Financial Highlights - Q4 2024 revenue reached $235.7 million, marking an 11% increase year-over-year, while full year revenue totaled $900.0 million, up 13% year-over-year [5][6]. - Calculated current billings for Q4 were $302.2 million, also an 11% increase year-over-year, with full year calculated current billings at $969.5 million, up 11% year-over-year [5][6]. - The company achieved a GAAP income from operations of $13.0 million in Q4 2024, a significant improvement from a loss of $14.3 million in Q4 2023 [6]. - Non-GAAP income from operations for Q4 was $59.4 million, compared to $36.1 million in the same quarter of the previous year [6]. - Full year net cash provided by operating activities was $217.5 million, with unlevered free cash flow of $237.8 million [5][6]. Business Developments - The company added 485 new enterprise platform customers and 135 net new six-figure customers during the year [11]. - Tenable announced its intent to acquire Vulcan Cyber Ltd., which is expected to enhance its exposure management platform [11]. - The launch of Tenable Patch Management and integration of Tenable Vulnerability Intelligence into Tenable Security Center were key product developments [11]. Financial Outlook - For Q1 2025, Tenable expects revenue in the range of $232.0 million to $234.0 million and non-GAAP income from operations between $42.0 million and $44.0 million [12]. - For the full year 2025, revenue is projected to be between $971.0 million and $981.0 million, with non-GAAP income from operations expected to be in the range of $213.0 million to $223.0 million [12].