Tenable Holdings, Inc. (TENB) Bundle
A Brief History of Tenable Holdings, Inc.
Tenable Holdings, Inc. was founded in 2016 and has rapidly established itself as a leader in cybersecurity, particularly in the field of exposure management. The company is headquartered in Columbia, Maryland, and is publicly traded on the NASDAQ under the ticker symbol TENB.
Company Growth and Development
Since its inception, Tenable has focused on providing solutions that help organizations manage their cybersecurity risks effectively. The company has expanded its product offerings, including the launch of Tenable.io and Tenable.sc, which provide comprehensive visibility into vulnerabilities across various environments.
Financial Performance
As of the end of the third quarter of 2024, Tenable reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $227.1 million | $201.5 million | +13% |
| Calculated Current Billings | $248.4 million | $224.7 million | +11% |
| GAAP Net Loss | $9.2 million | $15.6 million | -41% |
| Non-GAAP Net Income | $39.3 million | $27.7 million | +42% |
| Non-GAAP Diluted EPS | $0.32 | $0.23 | +39% |
For the full year 2024, Tenable anticipates:
| Metric | 2024 Forecast |
|---|---|
| Revenue | $893.3 million to $897.3 million |
| Non-GAAP Income from Operations | $171.8 million to $173.8 million |
| Non-GAAP Net Income | $149.9 million to $151.9 million |
| Non-GAAP Diluted EPS | $1.21 to $1.23 |
| Unlevered Free Cash Flow | $225.0 million to $235.0 million |
Recent Business Developments
Tenable has continued to innovate and expand its product suite. Recent highlights include:
- Introduction of AI Aware, enhancing detection capabilities for AI-related vulnerabilities.
- Expansion of exposure management capabilities to cloud data and AI.
- Launch of Tenable Enclave Security for clients in secure environments.
- Recognition as the top performer in cloud security by the 2024 CRN Annual Report Card Awards.
Market Position and Future Outlook
Tenable's focus on cloud security and AI solutions positions it well in a rapidly evolving cybersecurity landscape. With a robust pipeline of innovations and a strong customer base, including approximately 44,000 clients worldwide, the company aims to maintain its growth trajectory into 2025 and beyond.
A Who Owns Tenable Holdings, Inc. (TENB)
Ownership Structure
Tenable Holdings, Inc. (NASDAQ: TENB) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. As of 2024, the significant ownership stakes are as follows:
| Ownership Type | Percentage | Number of Shares |
|---|---|---|
| Institutional Investors | 85.1% | 104.5 million |
| Insider Ownership | 7.5% | 9.3 million |
| Public Float | 7.4% | 9.2 million |
Major Shareholders
The following table lists the major shareholders of Tenable Holdings, Inc. as of 2024, highlighting the institutional and insider ownership:
| Shareholder | Type | Shares Owned | Percentage Owned |
|---|---|---|---|
| Vanguard Group, Inc. | Institutional | 15.2 million | 12.3% |
| BlackRock, Inc. | Institutional | 14.8 million | 12.1% |
| Fidelity Investments | Institutional | 11.5 million | 9.4% |
| Amit Yoran (CEO) | Insider | 2.1 million | 1.7% |
| Other Insiders | Insider | 7.2 million | 5.8% |
Stock Performance and Market Capitalization
As of October 2024, Tenable Holdings, Inc. trades at approximately $18.50 per share with a market capitalization of around $2.3 billion. The stock has experienced a year-to-date increase of approximately 25%.
Recent Changes in Ownership
In recent months, there has been notable activity in the ownership structure:
- Institutional investors increased their holdings by approximately 2% over the last quarter.
- Insider purchases accounted for 0.5% of total shares in the same period.
- Public float has remained stable with minor fluctuations in trading volume.
Conclusion on Ownership Dynamics
The ownership dynamics of Tenable Holdings, Inc. reflect a strong institutional backing, indicative of investor confidence in the company's growth potential in the cybersecurity domain. The presence of significant insider ownership also suggests alignment between management and shareholder interests.
Tenable Holdings, Inc. (TENB) Mission Statement
Tenable Holdings, Inc. aims to provide organizations with comprehensive exposure management solutions that protect against cybersecurity risks. The company's mission is to empower organizations to understand and manage their cybersecurity vulnerabilities effectively, thereby reducing business risk and enhancing overall security posture.
Financial Performance Overview
As of Q3 2024, Tenable reported the following financial results:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $227.1 million | $201.5 million |
| Net Loss | ($9.2 million) | ($15.6 million) |
| Non-GAAP Net Income | $39.3 million | $27.7 million |
| GAAP Net Loss per Share | ($0.08) | ($0.13) |
| Non-GAAP Diluted Earnings per Share | $0.32 | $0.23 |
| Free Cash Flow | $52.7 million | $40.3 million |
| Unlevered Free Cash Flow | $60.8 million | $48.2 million |
Operating Metrics
For the nine months ended September 30, 2024, the operating metrics are as follows:
| Metric | 2024 | 2023 |
|---|---|---|
| Calculated Current Billings | $667.3 million | $601.7 million |
| Recurring Revenue Percentage | 96% | 95% |
| Cash and Cash Equivalents | $548.4 million | $474.0 million |
| Total Assets | $1.634 billion | $1.607 billion |
| Total Liabilities | $1.230 billion | $1.261 billion |
| Total Stockholders' Equity | $404.6 million | $346.3 million |
Recent Business Highlights
- Added 386 new enterprise platform customers in Q3 2024.
- Approved a $200 million expansion of the stock repurchase program.
- Released AI Aware, enhancing detection capabilities for AI vulnerabilities.
- Introduced new features such as Vulnerability Intelligence and Exposure Response.
- Extended exposure management capabilities to cloud data and AI with DSPM and AI-SPM.
- Launched Tenable Enclave Security for highly secure environments.
Financial Outlook for 2024
For the fourth quarter and the full year ending December 31, 2024, Tenable forecasts the following:
| Metric | Q4 2024 (Range) | Full Year 2024 (Range) |
|---|---|---|
| Revenue | $229.0 million - $233.0 million | $893.3 million - $897.3 million |
| Non-GAAP Income from Operations | $47.0 million - $49.0 million | $171.8 million - $173.8 million |
| Non-GAAP Net Income | $42.0 million - $44.0 million | $149.9 million - $151.9 million |
| Non-GAAP Diluted Earnings per Share | $0.33 - $0.35 | $1.21 - $1.23 |
| Unlevered Free Cash Flow | $225.0 million - $235.0 million | N/A |
How Tenable Holdings, Inc. (TENB) Works
Company Overview
Tenable Holdings, Inc. specializes in exposure management, focusing on cybersecurity solutions that help organizations identify, manage, and reduce their security exposures across IT and cloud environments. The company offers a suite of products that include vulnerability management and cloud security solutions, helping approximately 44,000 customers globally.
Financial Performance (2024)
As of the third quarter of 2024, Tenable reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Revenue | $227.1 million | $201.5 million | $664.3 million | $585.4 million |
| Net Loss | $(9.2) million | $(15.6) million | $(38.2) million | $(56.6) million |
| Non-GAAP Net Income | $39.3 million | $27.7 million | $107.9 million | $67.0 million |
| Non-GAAP Diluted EPS | $0.32 | $0.23 | $0.88 | $0.56 |
| Cash and Cash Equivalents | $312.2 million | N/A | $312.2 million | N/A |
Revenue Composition
The revenue breakdown for the three months ended September 30, 2024, is as follows:
| Type of Revenue | Q3 2024 | Q3 2023 |
|---|---|---|
| Subscription Revenue | $208.6 million | $183.3 million |
| Perpetual License and Maintenance Revenue | $11.8 million | $12.2 million |
| Professional Services and Other Revenue | $6.8 million | $6.1 million |
Expenses Overview
Operating expenses for the third quarter of 2024 included:
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Sales and Marketing | $99.1 million | $94.8 million |
| Research and Development | $48.0 million | $37.1 million |
| General and Administrative | $31.6 million | $31.9 million |
| Total Operating Expenses | $178.7 million | $163.7 million |
Cash Flow Analysis
For the nine months ended September 30, 2024, cash flows were as follows:
| Cash Flow Category | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $136,357 |
| Free Cash Flow | $128,503 |
| Unlevered Free Cash Flow | $152,008 |
| Cash Paid for Interest and Other Financing Costs | $23,505 |
Market Position and Customer Growth
In Q3 2024, Tenable added:
- 386 new enterprise platform customers
- 60 net new six-figure customers
The company was recognized as the top performer in cloud security in the 2024 CRN Annual Report Card Awards.
Financial Outlook
For the fourth quarter and full year 2024, Tenable expects:
| Metric | Q4 2024 Estimate | Full Year 2024 Estimate |
|---|---|---|
| Revenue | $229.0 - $233.0 million | $893.3 - $897.3 million |
| Non-GAAP Net Income | $42.0 - $44.0 million | $149.9 - $151.9 million |
| Non-GAAP Diluted EPS | $0.33 - $0.35 | $1.21 - $1.23 |
| Unlevered Free Cash Flow | N/A | $225.0 - $235.0 million |
How Tenable Holdings, Inc. (TENB) Makes Money
Revenue Streams
Tenable Holdings, Inc. generates revenue primarily through subscription services, which include software licenses and cloud-based solutions. As of the third quarter of 2024, subscription revenue accounted for $208.6 million, representing approximately 92% of total revenue.
| Revenue Component | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Subscription Revenue | $208,554 | $183,268 |
| Perpetual License and Maintenance Revenue | $11,769 | $12,200 |
| Professional Services and Other Revenue | $6,765 | $6,061 |
| Total Revenue | $227,088 | $201,529 |
Recurring Revenue Model
Recurring revenue is a significant aspect of Tenable's business model, comprising 96% of total revenue in Q3 2024. This model includes subscription arrangements for software and maintenance associated with perpetual licenses.
Financial Performance
For the third quarter of 2024, Tenable reported a revenue of $227.1 million, which reflects a 13% increase year-over-year. The calculated current billings for the same period were $248.4 million, an increase of 11% year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $227,088,000 | $201,529,000 |
| Calculated Current Billings | $248,441,000 | $224,702,000 |
| GAAP Net Loss | $(9,211,000) | $(15,565,000) |
| Non-GAAP Net Income | $39,323,000 | $27,668,000 |
| Free Cash Flow | $52,711,000 | $40,316,000 |
Cost Structure
The company's operating expenses in Q3 2024 totaled $178.7 million, reflecting an increase from $163.7 million in Q3 2023. Key components include:
- Sales and Marketing: $99.1 million
- Research and Development: $48.0 million
- General and Administrative: $31.6 million
Market Position and Future Outlook
Tenable continues to expand its offerings in cloud security and exposure management, which are critical as businesses increasingly focus on cybersecurity. The company expects revenue for the fourth quarter of 2024 to range between $229.0 million and $233.0 million.
| Financial Outlook | Q4 2024 (Projected) |
|---|---|
| Revenue | $229,000,000 - $233,000,000 |
| Non-GAAP Income from Operations | $47,000,000 - $49,000,000 |
| Non-GAAP Net Income | $42,000,000 - $44,000,000 |
| Non-GAAP Diluted Earnings per Share | $0.33 - $0.35 |
Cash Flow Analysis
As of September 30, 2024, Tenable reported cash and cash equivalents totaling $312.2 million. The net cash provided by operating activities for the first nine months of 2024 was $136.4 million, an increase from $111.4 million in the same period of 2023.
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Article updated on 8 Nov 2024
Resources:
- Tenable Holdings, Inc. (TENB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Tenable Holdings, Inc. (TENB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Tenable Holdings, Inc. (TENB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.