Tenable(US:TENB)2025-02-21 23:59Customer 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].