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 by strong traction in cloud
and Tenable One as customers look to secure cloud and get a
holistic view of their environment.”
“We continue to drive incredible value for our customers
resulting in a strong quarter for six-figure additions, many of
which were Tenable One deals,” said Mark Thurmond, Co-CEO and COO
of Tenable. “We are winning marquee, large deals with our exposure
management products and are laser focused on continuing to deliver
on our customer-driven roadmap.”
Fourth Quarter 2024 Financial Highlights
- Revenue was $235.7 million, an 11%
increase year-over-year.
- Calculated current billings was
$302.2 million, an 11% increase year-over-year.
- GAAP income from operations was
$13.0 million, compared to a loss of $14.3 million in the fourth
quarter of 2023.
- Non-GAAP income from operations was
$59.4 million, compared to $36.1 million in the fourth quarter of
2023.
- GAAP net income was $1.9 million,
compared to a loss of $21.6 million in the fourth quarter of
2023.
- GAAP diluted earnings per share was
$0.02, compared to a loss per share of $0.19 in the fourth quarter
of 2023.
- Non-GAAP net income was $50.7
million, compared to $30.2 million in the fourth quarter of
2023.
- Non-GAAP diluted earnings per share
was $0.41, compared to $0.25 in the fourth quarter of 2023.
- Net cash provided by operating
activities was $81.1 million, compared to $38.5 million in the
fourth quarter of 2023.
- Unlevered free cash flow was $85.7
million, compared to $43.3 million in the fourth quarter of
2023.
- Repurchased 1.2 million shares of
our common stock for $50.0 million.
Full Year 2024 Financial Highlights
- Revenue was $900.0 million, a 13%
increase year-over-year.
- Calculated current billings was
$969.5 million, an 11% increase year-over-year.
- GAAP loss from operations was $6.9
million, compared to $52.2 million in 2023.
- Non-GAAP income from operations was
$184.1 million, compared to $121.0 million in 2023.
- GAAP net loss was $36.3 million,
compared to $78.3 million in 2023.
- GAAP net loss per share was $0.31,
compared to $0.68 in 2023.
- Non-GAAP net income was $158.6
million, compared to $97.2 million in 2023.
- Non-GAAP diluted earnings per share
was $1.29, compared to $0.80 in 2023.
- Cash and cash equivalents and
short-term investments were $577.2 million at December 31, 2024,
compared to $474.0 million at December 31, 2023.
- Net cash provided by operating
activities was $217.5 million, compared to $149.9 million in
2023.
- Unlevered free cash flow was $237.8
million, compared to $175.4 million in 2023.
- Repurchased 2.3 million shares of
our common stock for $100.0 million.
Recent Business Highlights
- Added 485 new enterprise platform
customers and 135 net new six-figure customers.
- Announced our intent to acquire
exposure management company Vulcan Cyber Ltd., whose capabilities
will augment our industry-leading Exposure Management platform,
adding enhanced visibility, extended third-party data flows,
superior risk prioritization, and optimized remediation.
- Launched Tenable Patch Management,
an autonomous patch management solution built to quickly and
effectively close vulnerability exposures.
- Integrated Tenable Vulnerability
Intelligence into Tenable Security Center and enhanced the
solution’s risk prioritization and web application scanning
features to streamline vulnerability analysis and response.
- Published the 2024 Tenable Cloud
Risk Report examining the critical risks at play in modern cloud
environments. The report reflects findings by the Tenable Cloud
Research team based on telemetry from millions of cloud resources
across multiple public cloud repositories.
Financial Outlook
Our financial outlook excludes the impact of the potential
acquisition of Vulcan Cyber, which we expect to close shortly.
For the first quarter of 2025, we currently expect:
- Revenue in the range of
$232.0 million to $234.0 million.
- Non-GAAP income from operations in
the range of $42.0 million to $44.0 million.
- Non-GAAP net income in the range of
$35.0 million to $37.0 million, assuming interest income of
$5.2 million, interest expense of $7.0 million and a
provision for income taxes of $3.6 million.
- Non-GAAP diluted earnings per share
in the range of $0.28 to $0.30.
- 124.0 million diluted weighted
average shares outstanding.
For the year ending December 31, 2025, we currently expect:
- Calculated current billings in the
range of $1.040 billion to $1.055 billion.
- Revenue in the range of
$971.0 million to $981.0 million.
- Non-GAAP income from operations in
the range of $213.0 million to $223.0 million.
- Non-GAAP net income in the range of
$189.0 million to $199.0 million, assuming interest income of
$21.0 million, interest expense of $28.3 million and a
provision for income taxes of $13.4 million.
- Non-GAAP diluted earnings per share
in the range of $1.52 to $1.60.
- 124.5 million diluted weighted
average shares outstanding.
- Unlevered free cash flow in the
range of $285.0 million to $295.0 million.
Conference Call Information
Tenable will host a conference call today, February 5,
2025, 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 Relationsinvestors@tenable.com
Media Relationstenablepr@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 and streamline vulnerability
analysis and response, 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, our Quarterly Report on Form 10-Q
for the quarter ended September 30, 2024 and 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 to reorganize business
operations. 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 income (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 EndedDecember
31, |
|
Year EndedDecember 31, |
| (in thousands, except
per share data) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Revenue |
$ |
235,731 |
|
|
$ |
213,306 |
|
|
$ |
900,021 |
|
|
$ |
798,710 |
|
| Cost of revenue(1) |
|
51,439 |
|
|
|
48,803 |
|
|
|
199,668 |
|
|
|
183,577 |
|
| Gross profit |
|
184,292 |
|
|
|
164,503 |
|
|
|
700,353 |
|
|
|
615,133 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
Sales and marketing(1) |
|
95,348 |
|
|
|
103,700 |
|
|
|
395,385 |
|
|
|
393,450 |
|
|
Research and development(1) |
|
44,728 |
|
|
|
40,083 |
|
|
|
181,624 |
|
|
|
153,163 |
|
|
General and administrative(1) |
|
31,241 |
|
|
|
30,567 |
|
|
|
124,130 |
|
|
|
116,181 |
|
|
Restructuring |
|
— |
|
|
|
4,499 |
|
|
|
6,070 |
|
|
|
4,499 |
|
| Total operating expenses |
|
171,317 |
|
|
|
178,849 |
|
|
|
707,209 |
|
|
|
667,293 |
|
| Income (loss) from
operations |
|
12,975 |
|
|
|
(14,346 |
) |
|
|
(6,856 |
) |
|
|
(52,160 |
) |
|
Interest income |
|
5,738 |
|
|
|
5,377 |
|
|
|
23,325 |
|
|
|
24,700 |
|
|
Interest expense |
|
(7,587 |
) |
|
|
(8,131 |
) |
|
|
(31,920 |
) |
|
|
(31,339 |
) |
|
Other expense, net |
|
(2,577 |
) |
|
|
(609 |
) |
|
|
(3,435 |
) |
|
|
(8,602 |
) |
| Income (loss) before income
taxes |
|
8,549 |
|
|
|
(17,709 |
) |
|
|
(18,886 |
) |
|
|
(67,401 |
) |
| Provision for income
taxes |
|
6,681 |
|
|
|
3,939 |
|
|
|
17,415 |
|
|
|
10,883 |
|
| Net income (loss) |
$ |
1,868 |
|
|
$ |
(21,648 |
) |
|
$ |
(36,301 |
) |
|
$ |
(78,284 |
) |
| |
|
|
|
|
|
|
|
| Net earnings (loss) per
share: |
|
|
|
|
|
|
|
|
Basic |
$ |
0.02 |
|
|
$ |
(0.19 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.68 |
) |
|
Diluted |
$ |
0.02 |
|
|
$ |
(0.19 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.68 |
) |
| |
|
|
|
|
|
|
|
| Weighted-average shares used
to compute net earnings (loss) per share: |
|
|
|
|
|
|
|
|
Basic |
|
119,748 |
|
|
|
116,717 |
|
|
|
118,789 |
|
|
|
115,408 |
|
|
Diluted |
|
123,853 |
|
|
|
116,717 |
|
|
|
118,789 |
|
|
|
115,408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______________
(1) Includes stock-based compensation as follows:
| |
Three Months EndedDecember
31, |
|
Year EndedDecember 31, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Cost of revenue |
$ |
3,191 |
|
$ |
2,705 |
|
$ |
12,677 |
|
$ |
11,247 |
| Sales and marketing |
|
15,210 |
|
|
14,700 |
|
|
62,727 |
|
|
61,322 |
| Research and development |
|
12,261 |
|
|
9,354 |
|
|
47,656 |
|
|
37,225 |
| General and
administrative |
|
10,052 |
|
|
9,756 |
|
|
40,455 |
|
|
35,533 |
|
Total stock-based compensation |
$ |
40,714 |
|
$ |
36,515 |
|
$ |
163,515 |
|
$ |
145,327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TENABLE HOLDINGS, INC.CONSOLIDATED BALANCE
SHEETS(unaudited) |
| |
| |
December 31, |
|
(in thousands, except per share data) |
|
2024 |
|
|
|
2023 |
|
| Assets |
|
|
|
| Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
328,647 |
|
|
$ |
237,132 |
|
|
Short-term investments |
|
248,547 |
|
|
|
236,840 |
|
|
Accounts receivable (net of allowance for doubtful accounts of $525
and $470 at December 31, 2024 and 2023, respectively) |
|
258,734 |
|
|
|
220,060 |
|
|
Deferred commissions |
|
51,791 |
|
|
|
49,559 |
|
|
Prepaid expenses and other current assets |
|
53,026 |
|
|
|
61,882 |
|
| Total current assets |
|
940,745 |
|
|
|
805,473 |
|
| Property and equipment,
net |
|
39,265 |
|
|
|
45,436 |
|
| Deferred commissions (net of
current portion) |
|
67,914 |
|
|
|
72,394 |
|
| Operating lease right-of-use
assets |
|
45,139 |
|
|
|
34,835 |
|
| Acquired intangible assets,
net |
|
94,461 |
|
|
|
107,017 |
|
| Goodwill |
|
541,292 |
|
|
|
518,539 |
|
| Other assets |
|
13,303 |
|
|
|
23,177 |
|
| Total assets |
$ |
1,742,119 |
|
|
$ |
1,606,871 |
|
| |
|
|
|
| Liabilities and
Stockholders' Equity |
|
|
|
| Current liabilities: |
|
|
|
|
Accounts payable and accrued expenses |
$ |
19,981 |
|
|
$ |
16,941 |
|
|
Accrued compensation |
|
55,784 |
|
|
|
66,492 |
|
|
Deferred revenue |
|
650,372 |
|
|
|
580,779 |
|
|
Operating lease liabilities |
|
6,801 |
|
|
|
5,971 |
|
|
Other current liabilities |
|
5,154 |
|
|
|
5,655 |
|
| Total current liabilities |
|
738,092 |
|
|
|
675,838 |
|
| Deferred revenue (net of
current portion) |
|
182,815 |
|
|
|
169,718 |
|
| Term loan, net of issuance
costs (net of current portion) |
|
356,705 |
|
|
|
359,281 |
|
| Operating lease liabilities
(net of current portion) |
|
56,224 |
|
|
|
48,058 |
|
| Other liabilities |
|
8,329 |
|
|
|
7,632 |
|
| Total liabilities |
|
1,342,165 |
|
|
|
1,260,527 |
|
| Stockholders’ equity: |
|
|
|
|
Common stock (par value: $0.01; 500,000 shares authorized, 122,371
and 117,504 shares issued at December 31, 2024 and 2023,
respectively) |
|
1,224 |
|
|
|
1,175 |
|
|
Additional paid-in capital |
|
1,374,659 |
|
|
|
1,185,100 |
|
|
Treasury stock (at cost: 2,673 and 356 shares at December 31, 2024
and 2023, respectively) |
|
(114,911 |
) |
|
|
(14,934 |
) |
|
Accumulated other comprehensive income |
|
318 |
|
|
|
38 |
|
|
Accumulated deficit |
|
(861,336 |
) |
|
|
(825,035 |
) |
| Total stockholders’
equity |
|
399,954 |
|
|
|
346,344 |
|
| Total liabilities and
stockholders' equity |
$ |
1,742,119 |
|
|
$ |
1,606,871 |
|
| |
|
|
|
|
|
|
|
|
TENABLE HOLDINGS, INC.CONSOLIDATED
STATEMENTS OF CASH FLOWS(unaudited) |
| |
| |
Year Ended December 31, |
|
(in thousands) |
|
2024 |
|
|
|
2023 |
|
| Cash flows from
operating activities: |
|
|
|
| Net loss |
$ |
(36,301 |
) |
|
$ |
(78,284 |
) |
| Adjustments to reconcile net
loss to net cash provided by operating activities: |
|
|
|
|
Depreciation and amortization |
|
33,209 |
|
|
|
27,108 |
|
|
Stock-based compensation |
|
163,515 |
|
|
|
145,327 |
|
|
Net accretion of discounts and amortization of premiums on
short-term investments |
|
(7,595 |
) |
|
|
(8,323 |
) |
|
Amortization of debt issuance costs |
|
1,353 |
|
|
|
1,267 |
|
|
(Gain) loss on other investments |
|
(1,452 |
) |
|
|
5,617 |
|
|
Restructuring |
|
4,528 |
|
|
|
— |
|
|
Other |
|
6,507 |
|
|
|
2,179 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
(38,730 |
) |
|
|
(30,042 |
) |
|
Prepaid expenses and other assets |
|
26,170 |
|
|
|
1,689 |
|
|
Accounts payable, accrued expenses and accrued compensation |
|
(8,257 |
) |
|
|
7,071 |
|
|
Deferred revenue |
|
82,581 |
|
|
|
81,755 |
|
|
Other current and noncurrent liabilities |
|
(8,052 |
) |
|
|
(5,509 |
) |
|
Net cash provided by operating activities |
|
217,476 |
|
|
|
149,855 |
|
| |
|
|
|
| Cash flows from
investing activities: |
|
|
|
| Purchases of property and
equipment |
|
(4,247 |
) |
|
|
(1,704 |
) |
| Capitalized software
development costs |
|
(6,451 |
) |
|
|
(7,052 |
) |
| Purchases of short-term
investments |
|
(287,797 |
) |
|
|
(278,209 |
) |
| Sales and maturities of
short-term investments |
|
283,964 |
|
|
|
317,651 |
|
| Proceeds from other
investments |
|
3,512 |
|
|
|
— |
|
| Purchases of other
investments |
|
(1,250 |
) |
|
|
— |
|
| Business combinations, net of
cash acquired |
|
(29,162 |
) |
|
|
(243,301 |
) |
|
Net cash used in investing activities |
|
(41,431 |
) |
|
|
(212,615 |
) |
| |
|
|
|
| Cash flows from
financing activities: |
|
|
|
| Payments on term loan |
|
(3,750 |
) |
|
|
(3,750 |
) |
| Proceeds from stock issued in
connection with the employee stock purchase plan |
|
16,262 |
|
|
|
16,224 |
|
| Proceeds from the exercise of
stock options |
|
8,064 |
|
|
|
3,501 |
|
| Purchase of treasury
stock |
|
(99,977 |
) |
|
|
(14,934 |
) |
| Other financing
activities |
|
— |
|
|
|
210 |
|
|
Net cash (used in) provided by financing activities |
|
(79,401 |
) |
|
|
1,251 |
|
|
Effect of exchange rate changes on cash and cash equivalents and
restricted cash |
|
(5,129 |
) |
|
|
(2,225 |
) |
| Net increase (decrease) in
cash and cash equivalents and restricted cash |
|
91,515 |
|
|
|
(63,734 |
) |
| Cash and cash equivalents and
restricted cash at beginning of year |
|
237,132 |
|
|
|
300,866 |
|
| Cash and cash
equivalents and restricted cash at end of year |
$ |
328,647 |
|
|
$ |
237,132 |
|
| |
|
|
|
|
|
|
|
|
TENABLE HOLDINGS, INC.REVENUE COMPONENTS
AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES(unaudited) |
| |
| Revenue |
Three Months EndedDecember
31, |
|
Year EndedDecember 31, |
|
(in thousands) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
| Subscription revenue |
$ |
215,932 |
|
$ |
193,880 |
|
$ |
824,659 |
|
$ |
725,013 |
| Perpetual license and
maintenance revenue |
|
11,833 |
|
|
12,194 |
|
|
47,774 |
|
|
48,729 |
| Professional services and
other revenue |
|
7,966 |
|
|
7,232 |
|
|
27,588 |
|
|
24,968 |
|
Revenue(1) |
$ |
235,731 |
|
$ |
213,306 |
|
$ |
900,021 |
|
$ |
798,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
_______________
(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 95% and
96% of revenue, respectively, in the three months and year ended
December 31, 2024 and 95% of revenue in the three months and year
ended December 31, 2023.
| Calculated Current
Billings |
Three Months EndedDecember
31, |
|
Year Ended December 31, |
|
(in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Revenue |
$ |
235,731 |
|
|
$ |
213,306 |
|
|
$ |
900,021 |
|
|
$ |
798,710 |
|
| Deferred revenue (current),
end of period |
|
650,372 |
|
|
|
580,779 |
|
|
|
650,372 |
|
|
|
580,779 |
|
| Deferred revenue (current),
beginning of period(1) |
|
(583,940 |
) |
|
|
(522,449 |
) |
|
|
(580,887 |
) |
|
|
(506,192 |
) |
|
Calculated current billings |
$ |
302,163 |
|
|
$ |
271,636 |
|
|
$ |
969,506 |
|
|
$ |
873,297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______________
(1) Deferred revenue (current), beginning of period for the
three months ended December 31, 2023 and years ended December 31,
2024 and 2023 includes $4.1 million, $0.1 million and
$4.1 million, respectively, related to acquired deferred
revenue.
| Remaining Performance
Obligations |
At December 31, |
|
(in thousands) |
|
2024 |
|
|
2023 |
| Remaining performance
obligations, short-term |
$ |
660,647 |
|
$ |
595,053 |
| Remaining performance
obligations, long-term |
|
206,879 |
|
|
179,955 |
|
Remaining performance obligations |
$ |
867,526 |
|
$ |
775,008 |
|
|
|
|
|
|
|
| Free Cash Flow and
Unlevered Free Cash Flow |
Three Months EndedDecember
31, |
|
Year Ended December 31, |
|
(in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net cash provided by operating
activities |
$ |
81,119 |
|
|
$ |
38,505 |
|
|
$ |
217,476 |
|
|
$ |
149,855 |
|
| Purchases of property and
equipment |
|
(2,323 |
) |
|
|
(405 |
) |
|
|
(4,247 |
) |
|
|
(1,704 |
) |
| Capitalized software
development costs |
|
(521 |
) |
|
|
(2,345 |
) |
|
|
(6,451 |
) |
|
|
(7,052 |
) |
|
Free cash flow |
|
78,275 |
|
|
|
35,755 |
|
|
|
206,778 |
|
|
|
141,099 |
|
| Cash paid for interest and
other financing costs |
|
7,472 |
|
|
|
7,537 |
|
|
|
30,977 |
|
|
|
34,323 |
|
|
Unlevered free cash flow |
$ |
85,747 |
|
|
$ |
43,292 |
|
|
$ |
237,755 |
|
|
$ |
175,422 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow and unlevered free cash flow for the periods
presented were impacted by:
| |
Three Months EndedDecember
31, |
|
Year EndedDecember 31, |
|
(in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Employee stock purchase plan
activity |
$ |
5,267 |
|
|
$ |
3,584 |
|
|
$ |
(1,016 |
) |
|
$ |
1,077 |
|
| Acquisition-related
expenses |
|
(170 |
) |
|
|
(8,506 |
) |
|
|
(1,496 |
) |
|
|
(9,336 |
) |
| Restructuring |
|
— |
|
|
|
— |
|
|
|
(5,911 |
) |
|
|
— |
|
| Tax payment on intra-entity
asset transfer(1) |
|
(1,232 |
) |
|
|
— |
|
|
|
(1,232 |
) |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________________
(1) The tax payment on intra-entity asset transfer includes $0.3
million of interest that is included in cash paid for interest and
other financing costs.
| Non-GAAP Income from
Operations and Non-GAAP Operating Margin |
Three Months EndedDecember
31, |
|
Year EndedDecember 31, |
|
(dollars in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Income (loss) from
operations |
$ |
12,975 |
|
|
$ |
(14,346 |
) |
|
$ |
(6,856 |
) |
|
$ |
(52,160 |
) |
| Stock-based compensation |
|
40,714 |
|
|
|
36,515 |
|
|
|
163,515 |
|
|
|
145,327 |
|
| Acquisition-related
expenses |
|
648 |
|
|
|
4,744 |
|
|
|
1,932 |
|
|
|
9,472 |
|
| Restructuring |
|
— |
|
|
|
4,499 |
|
|
|
6,070 |
|
|
|
4,499 |
|
| Amortization of acquired
intangible assets |
|
5,014 |
|
|
|
4,651 |
|
|
|
19,457 |
|
|
|
13,859 |
|
|
Non-GAAP income from operations |
$ |
59,351 |
|
|
$ |
36,063 |
|
|
$ |
184,118 |
|
|
$ |
120,997 |
|
| Operating margin |
|
6 |
% |
|
|
(7) |
% |
|
|
(1) |
% |
|
|
(7) |
% |
| Non-GAAP operating margin |
|
25 |
% |
|
|
17 |
% |
|
|
20 |
% |
|
|
15 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP Net Income and
Non-GAAP Earnings Per Share |
Three Months EndedDecember
31, |
|
Year EndedDecember 31, |
|
(in thousands, except per share data) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net income (loss) |
$ |
1,868 |
|
|
$ |
(21,648 |
) |
|
$ |
(36,301 |
) |
|
$ |
(78,284 |
) |
| Stock-based compensation |
|
40,714 |
|
|
|
36,515 |
|
|
|
163,515 |
|
|
|
145,327 |
|
| Tax impact of stock-based
compensation(1) |
|
1,219 |
|
|
|
971 |
|
|
|
2,845 |
|
|
|
2,017 |
|
| Acquisition-related
expenses(2) |
|
648 |
|
|
|
4,744 |
|
|
|
1,932 |
|
|
|
9,472 |
|
| Restructuring(2) |
|
— |
|
|
|
4,499 |
|
|
|
6,070 |
|
|
|
4,499 |
|
| Amortization of acquired
intangible assets(3) |
|
5,014 |
|
|
|
4,651 |
|
|
|
19,457 |
|
|
|
13,859 |
|
| Tax impact of
acquisitions |
|
(31 |
) |
|
|
426 |
|
|
|
(161 |
) |
|
|
265 |
|
| Tax impact of intra-entity
asset transfer(4) |
|
1,232 |
|
|
|
— |
|
|
|
1,232 |
|
|
|
— |
|
|
Non-GAAP net income |
$ |
50,664 |
|
|
$ |
30,158 |
|
|
$ |
158,589 |
|
|
$ |
97,155 |
|
| |
|
|
|
|
|
|
|
| Net earnings (loss) per share,
diluted |
$ |
0.02 |
|
|
$ |
(0.19 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.68 |
) |
| Stock-based compensation |
|
0.33 |
|
|
|
0.31 |
|
|
|
1.38 |
|
|
|
1.25 |
|
| Tax impact of stock-based
compensation(1) |
|
0.01 |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
|
0.02 |
|
| Acquisition-related
expenses(2) |
|
— |
|
|
|
0.04 |
|
|
|
0.02 |
|
|
|
0.08 |
|
| Restructuring(2) |
|
— |
|
|
|
0.04 |
|
|
|
0.05 |
|
|
|
0.04 |
|
| Amortization of acquired
intangible assets(3) |
|
0.04 |
|
|
|
0.04 |
|
|
|
0.16 |
|
|
|
0.11 |
|
| Tax impact of
acquisitions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Tax impact of intra-entity
asset transfer(4) |
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
| Adjustment to diluted earnings
per share(5) |
|
— |
|
|
|
— |
|
|
|
(0.05 |
) |
|
|
(0.02 |
) |
|
Non-GAAP earnings per share, diluted |
$ |
0.41 |
|
|
$ |
0.25 |
|
|
$ |
1.29 |
|
|
$ |
0.80 |
|
| |
|
|
|
|
|
|
|
| Weighted-average shares used
to compute GAAP net earnings (loss) per share, diluted |
|
123,853 |
|
|
|
116,717 |
|
|
|
118,789 |
|
|
|
115,408 |
|
| |
|
|
|
|
|
|
|
| Weighted-average shares used
to compute non-GAAP earnings per share, diluted |
|
123,853 |
|
|
|
122,023 |
|
|
|
123,370 |
|
|
|
120,714 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________________
(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 charges are not material.
(3) The tax impact of the amortization of acquired intangible
assets is included in the tax impact of acquisitions.
(4) The tax impact of the intra-entity asset transfer is
additional tax incurred related to the 2021 internal restructuring
of Indegy.
(5) 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, when
applicable.
| Non-GAAP Gross Profit and
Non-GAAP Gross Margin |
Three Months EndedDecember
31, |
|
Year EndedDecember 31, |
|
(dollars in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Gross profit |
$ |
184,292 |
|
|
$ |
164,503 |
|
|
$ |
700,353 |
|
|
$ |
615,133 |
|
| Stock-based compensation |
|
3,191 |
|
|
|
2,705 |
|
|
|
12,677 |
|
|
|
11,247 |
|
| Amortization of acquired
intangible assets |
|
5,014 |
|
|
|
4,651 |
|
|
|
19,457 |
|
|
|
13,859 |
|
|
Non-GAAP gross profit |
$ |
192,497 |
|
|
$ |
171,859 |
|
|
$ |
732,487 |
|
|
$ |
640,239 |
|
| Gross margin |
|
78 |
% |
|
|
77 |
% |
|
|
78 |
% |
|
|
77 |
% |
| Non-GAAP gross margin |
|
82 |
% |
|
|
81 |
% |
|
|
81 |
% |
|
|
80 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP Sales and
Marketing Expense |
Three Months EndedDecember
31, |
|
Year EndedDecember 31, |
|
(dollars in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Sales and marketing
expense |
$ |
95,348 |
|
|
$ |
103,700 |
|
|
$ |
395,385 |
|
|
$ |
393,450 |
|
| Less: Stock-based
compensation |
|
15,210 |
|
|
|
14,700 |
|
|
|
62,727 |
|
|
|
61,322 |
|
| Less: Acquisition-related
expenses |
|
— |
|
|
|
512 |
|
|
|
52 |
|
|
|
512 |
|
|
Non-GAAP sales and marketing expense |
$ |
80,138 |
|
|
$ |
88,488 |
|
|
$ |
332,606 |
|
|
$ |
331,616 |
|
|
Non-GAAP sales and marketing expense % of revenue |
|
34 |
% |
|
|
41 |
% |
|
|
37 |
% |
|
|
42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP Research and
Development Expense |
Three Months EndedDecember
31, |
|
Year EndedDecember 31, |
|
(dollars in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Research and development
expense |
$ |
44,728 |
|
|
$ |
40,083 |
|
|
$ |
181,624 |
|
|
$ |
153,163 |
|
| Less: Stock-based
compensation |
|
12,261 |
|
|
|
9,354 |
|
|
|
47,656 |
|
|
|
37,225 |
|
| Less: Acquisition-related
expenses |
|
— |
|
|
|
2,880 |
|
|
|
(20 |
) |
|
|
2,880 |
|
|
Non-GAAP research and development expense |
$ |
32,467 |
|
|
$ |
27,849 |
|
|
$ |
133,988 |
|
|
$ |
113,058 |
|
|
Non-GAAP research and development expense % of revenue |
|
14 |
% |
|
|
13 |
% |
|
|
15 |
% |
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP General and
Administrative Expense |
Three Months EndedDecember
31, |
|
Year EndedDecember 31, |
|
(dollars in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| General and administrative
expense |
$ |
31,241 |
|
|
$ |
30,567 |
|
|
$ |
124,130 |
|
|
$ |
116,181 |
|
| Less: Stock-based
compensation |
|
10,052 |
|
|
|
9,756 |
|
|
|
40,455 |
|
|
|
35,533 |
|
| Less: Acquisition-related
expenses |
|
648 |
|
|
|
1,352 |
|
|
|
1,900 |
|
|
|
6,080 |
|
|
Non-GAAP general and administrative expense |
$ |
20,541 |
|
|
$ |
19,459 |
|
|
$ |
81,775 |
|
|
$ |
74,568 |
|
|
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 EndingMarch 31,
2025 |
|
Year Ending December 31,
2025 |
| (in
millions) |
Low |
|
High |
|
Low |
|
High |
|
Forecasted (loss) income from operations |
$ |
(18.0 |
) |
|
$ |
(16.0 |
) |
|
$ |
3.0 |
|
$ |
13.0 |
| Forecasted stock-based
compensation |
|
55.0 |
|
|
|
55.0 |
|
|
|
190.0 |
|
|
190.0 |
| Forecasted amortization of
acquired intangible assets |
|
5.0 |
|
|
|
5.0 |
|
|
|
20.0 |
|
|
20.0 |
|
Forecasted non-GAAP income from operations |
$ |
42.0 |
|
|
$ |
44.0 |
|
|
$ |
213.0 |
|
$ |
223.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Forecasted Non-GAAP Net
Income and Non-GAAP Earnings Per Share |
Three Months EndingMarch 31,
2025 |
|
Year EndingDecember 31, 2025 |
| (in millions, except per
share data) |
Low |
|
High |
|
Low |
|
High |
|
Forecasted net loss(1) |
$ |
(26.0 |
) |
|
$ |
(24.0 |
) |
|
$ |
(26.0 |
) |
|
$ |
(16.0 |
) |
| Forecasted stock-based
compensation |
|
55.0 |
|
|
|
55.0 |
|
|
|
190.0 |
|
|
|
190.0 |
|
| Forecasted tax impact of
stock-based compensation |
|
1.0 |
|
|
|
1.0 |
|
|
|
5.0 |
|
|
|
5.0 |
|
| Forecasted amortization of
acquired intangible assets |
|
5.0 |
|
|
|
5.0 |
|
|
|
20.0 |
|
|
|
20.0 |
|
|
Forecasted non-GAAP net income |
$ |
35.0 |
|
|
$ |
37.0 |
|
|
$ |
189.0 |
|
|
$ |
199.0 |
|
| |
|
|
|
|
|
|
|
| Forecasted net loss per share,
diluted(1) |
$ |
(0.22 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.13 |
) |
| Forecasted stock-based
compensation |
|
0.46 |
|
|
|
0.46 |
|
|
|
1.57 |
|
|
|
1.57 |
|
| Forecasted tax impact of
stock-based compensation |
|
0.01 |
|
|
|
0.01 |
|
|
|
0.04 |
|
|
|
0.04 |
|
| Forecasted amortization of
acquired intangible assets |
|
0.04 |
|
|
|
0.04 |
|
|
|
0.16 |
|
|
|
0.16 |
|
| Adjustment to diluted earnings
per share(2) |
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.04 |
) |
|
|
(0.04 |
) |
|
Forecasted non-GAAP earnings per share, diluted |
$ |
0.28 |
|
|
$ |
0.30 |
|
|
$ |
1.52 |
|
|
$ |
1.60 |
|
| |
|
|
|
|
|
|
|
| Forecasted weighted-average
shares used to compute GAAP net loss per share, diluted |
|
120.5 |
|
|
|
120.5 |
|
|
|
121.0 |
|
|
|
121.0 |
|
| Forecasted weighted-average
shares used to compute non-GAAP earnings per share, diluted |
|
124.0 |
|
|
|
124.0 |
|
|
|
124.5 |
|
|
|
124.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________________(1) The forecasted GAAP net loss assumes income
tax expense of $4.6 million and $18.4 million in the three months
ending March 31, 2025 and year ending December 31, 2025,
respectively.
(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 EndingDecember 31, 2025 |
| (in
millions) |
Low |
|
High |
|
Forecasted net cash provided by operating activities |
$ |
278.0 |
|
|
$ |
288.0 |
|
| Forecasted purchases of
property and equipment |
|
(17.0 |
) |
|
|
(17.0 |
) |
| Forecasted capitalized
software development costs |
|
(3.0 |
) |
|
|
(3.0 |
) |
|
Forecasted free cash flow |
|
258.0 |
|
|
|
268.0 |
|
| Forecasted cash paid for
interest and other financing costs |
|
27.0 |
|
|
|
27.0 |
|
|
Forecasted unlevered free cash flow |
$ |
285.0 |
|
|
$ |
295.0 |
|
|
|
|
|
|
|
|
|
|
Tenable (NASDAQ:TENB)
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From Jan 2025 to Feb 2025
Tenable (NASDAQ:TENB)
Historical Stock Chart
From Feb 2024 to Feb 2025
