Tenable(US:TENB)2025-11-04 22:07Revenue and Income - Revenue for the three months ended September 30, 2025, was $252,440,000, representing a 11.2% increase from $227,088,000 in the same period of 2024[88] - Net income for the three months ended September 30, 2025, was $2,260,000, compared to a net loss of $9,211,000 in the same period of 2024[88] - For the nine months ended September 30, 2025, total revenue was $738,872,000, an increase of 11% from $664,290,000 in 2024[144] - Subscription revenue increased by $23,657,000, or 11%, to $232,211,000, while professional services and other revenue rose by 35% to $9,141,000[134] Customer Metrics - Recurring revenue accounted for 95% of total revenue for the three months ended September 30, 2025, consistent with 96% in the same period of 2024[88] - The number of new enterprise platform customers added in the three months ended September 30, 2025, was 437, a 13% increase from 386 in the same period of 2024[98] - The number of customers with annual contract values of $100,000 or greater increased by 16% to 2,156 as of September 30, 2025, from 1,853 in 2024[98] - The dollar-based net expansion rate for the twelve months ended September 30, 2025, was 106%, slightly down from 108% in 2024[101] Operating Performance - Calculated current billings for the three months ended September 30, 2025, were $267,506,000, up from $248,441,000 in the same period of 2024, reflecting a growth of 7.4%[93] - Free cash flow for the three months ended September 30, 2025, was $51,630,000, compared to $52,711,000 in the same period of 2024[96] - The company reported a gross margin of 78% for both the three and nine months ended September 30, 2025[144] - Gross profit for the three months ended September 30, 2025, was $195,687,000, reflecting an 11% increase from $176,589,000 in 2024[135] Expenses - Total operating expenses for the three months ended September 30, 2025, were $188,551,000, up from $178,672,000 in 2024, marking a 5% increase[136] - Research and development expenses increased by 17% to $56,265,000 for the three months ended September 30, 2025, up from $48,020,000 in 2024[138] - Sales and marketing expenses for the three months ended September 30, 2025, were $99,949,000, a slight increase of 1% from $99,083,000 in 2024[136] - General and administrative expenses included $15.5 million in termination benefits related to the passing of the Chairman and CEO for the nine months ended September 30, 2025[128] Non-GAAP Metrics - For the three months ended September 30, 2025, the company reported a non-GAAP income from operations of $58.913 million, compared to $44.975 million for the same period in 2024, representing a 31% increase[106] - The non-GAAP operating margin improved to 23.3% in Q3 2025, up from 19.8% in Q3 2024[106] - Non-GAAP net income for the nine months ended September 30, 2025, was $137.125 million, compared to $107.925 million for the same period in 2024, reflecting a 27% increase[108] - The diluted non-GAAP earnings per share increased to $0.42 for Q3 2025, compared to $0.32 for Q3 2024, marking a 31% rise[108] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2025, was $183,720,000, compared to $136,357,000 in the same period of 2024[96] - Cash and cash equivalents totaled $171.9 million, with short-term investments at $211.7 million as of September 30, 2025[154] - Deferred revenue reached $810.5 million, with $639.6 million expected to be recognized as revenue in the next 12 months[157] - The company acquired Vulcan and Apex for a combined $196.2 million in cash in 2025[158] Other Financial Metrics - The provision for income taxes for the three months ended September 30, 2025, was $550,000, a significant decrease of 90% from $5,328,000 in 2024[140] - Interest income decreased by $4.99 million (28%) to $12.6 million, while interest expense decreased by $2.97 million (12%) to $21.36 million[152] - Provision for income taxes decreased by $2.35 million (22%) to $8.39 million[153] - The Term Loan interest rates ranged from 7.18% to 7.22% from January to September 2025[162]