Tenable(US:TENB)2020-07-30 10:06Revenue Performance - Revenue for the three months ended June 30, 2020, was $107.2 million, representing a year-over-year growth of 26% compared to $85.4 million in 2019[64] - Revenue for the three months ended June 30, 2020, was $107,209,000, a 25.5% increase from $85,384,000 in 2019[85] - For the six months ended June 30, 2020, total revenue was $209,857,000, a 27% increase from $165,685,000 in the same period of 2019[127] - The increase in revenue for the six months was driven by a $44,300,000 rise in subscription revenue[127] - Subscription revenue increased by $22,600,000, while international revenue rose by $10,600,000, or 34%[120] Recurring Revenue - Recurring revenue accounted for 93% of total revenue in the three months ended June 30, 2020, up from 91% in the same period of 2019[64] Profitability and Loss - Net loss for the three months ended June 30, 2020, was $12.0 million, an improvement from a net loss of $21.6 million in the same period of 2019[66] - The net loss for the three months ended June 30, 2020, was $11,960,000, compared to a net loss of $21,628,000 in the same period of 2019[119] - Non-GAAP income from operations for the three months ended June 30, 2020, was $5,679,000, compared to a loss of $10,710,000 in 2019[93] - Non-GAAP net income for the three months ended June 30, 2020, was $4,721,000, compared to a loss of $9,983,000 in 2019[96] - The operating margin for the three months ended June 30, 2020, was -10%, while the non-GAAP operating margin was 5%[93] Cash Flow and Financial Position - Free cash flow for the three months ended June 30, 2020, was $6,609,000, compared to a negative $5,152,000 in 2019[88] - The company reported a net cash provided by operating activities of $21.5 million for the six months ended June 30, 2020, compared to a net cash used of $3.0 million in the same period of 2019[144][146] - Cash and cash equivalents totaled $136.5 million, with short-term investments of $105.6 million as of June 30, 2020[156] - The company has an accumulated deficit of $600.1 million as of June 30, 2020, reflecting significant operating losses since inception[135] Customer Growth - The number of customers with annual contract value of $100,000 and greater increased by 33% to 715 in 2020 from 538 in 2019[90] - The number of new enterprise platform customers added in the three months ended June 30, 2020, was 341, a decrease of 3% from 352 in 2019[89] Investments and Expenditures - The company plans to continue investing in sales and marketing to expand its customer base and increase market share[68] - Investments in research and development are expected to enhance the functionality of the company's solutions and maintain its technological leadership in Cyber Exposure[78] - The company is proactively managing expenditures in response to the COVID-19 pandemic while preserving strategic investments in sales capacity and research and development[65] - The company plans to continue investing in its cloud-based platform and customer support team, which may affect future cost of revenue[105] - The company expects capital expenditures related to its new corporate headquarters to be approximately $8 million in the second half of 2020[137] Deferred Revenue and Billings - Deferred revenue stood at $365.3 million as of June 30, 2020, with $275.0 million expected to be recognized as revenue in the next 12 months[136] - The calculated current billings metric is used to measure periodic performance, consisting of revenue recognized in a period plus the change in current deferred revenue[81] - Calculated current billings for the six months ended June 30, 2020, were $210,462,000, up 17.4% from $179,268,000 in 2019[85] Operating Expenses - Total operating expenses for the three months ended June 30, 2020, were $98,632,000, compared to $93,700,000 in 2019[122] - Sales and marketing expenses for the three months ended June 30, 2020, were $55,443,000, a slight decrease of 1% from $56,015,000 in 2019[123] - Research and development expenses increased by $3,612,000, or 17%, totaling $25,310,000 for the three months ended June 30, 2020[123] - General and administrative expenses rose by $1,892,000, or 12%, reaching $17,879,000 for the three months ended June 30, 2020[126] - Personnel costs increased by $7.5 million, driven by headcount growth, including a $2.3 million rise in stock-based compensation[132] Future Outlook - The company expects gross profit to increase in absolute dollars but anticipates a decrease in gross margin due to a higher percentage of revenue from cloud-based subscriptions[107] - Operating losses are anticipated to continue in the near term, despite generating positive cash flows from operations in the first half of 2020[137] - A $45.0 million senior secured facility was established in July 2020, with a financial covenant requiring a minimum consolidated quick ratio of at least 1.5:1.0[143] - The company experienced a $1.3 million increase in acquisition-related expenses, partially offset by a $0.7 million decrease in travel and meeting costs[133] - A $24.5 million increase in sales and maturities of short-term investments was noted, contributing to net cash provided by investing activities[147]