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Tenable Holdings (TENB)
:TENB
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Tenable Holdings
(NASDAQ:TENB)63Neutral
Positive Factors
Acquisition Impact
The acquisition of Vulcan Cyber will enhance Tenable's Exposure Management platform by improving data aggregation capabilities.
Financial Performance
Tenable delivered solid Q4 results, topping all guided metrics.
Negative Factors
Acquisition Costs
The acquisition will increase operating expenses by $11 Million to $13 Million.
Government Spending Risks
Tenable added a risk that the new U.S. presidential administration's commitment to reduce government spending may impact availability of funding for U.S. government customers.
Tenable Holdings (TENB) vs. S&P 500 (SPY)
Market Cap
$4.58B
Dividend YieldN/A
Average Volume (3M)1.23M
Price to Earnings (P/E)―
Beta (1Y)0.99
Revenue Growth12.68%
EPS Growth54.80%
CountryUS
Employees1,999
SectorTechnology
Sector Strength48
IndustrySoftware
Share Statistics
EPS (TTM)-0.31
Shares Outstanding120,302,440
10 Day Avg. Volume1,260,288
30 Day Avg. Volume1,233,002
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.08
Price to Cash Flow (P/CF)14.10
P/FCF Ratio14.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$48.85Price Target Upside26.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
Tenable Holdings Business Overview & Revenue Model
Company DescriptionTenable Holdings, Inc. is a leading cybersecurity company specializing in vulnerability management. Headquartered in Columbia, Maryland, Tenable provides a comprehensive suite of solutions designed to help organizations identify and mitigate cybersecurity risks. Their flagship product, Tenable.io, is a cloud-based platform that offers continuous visibility into an organization's IT environment to detect and respond to vulnerabilities. Tenable's offerings cater to various sectors, including government, financial services, healthcare, and education, providing critical insights to protect against cyber threats.
How the Company Makes MoneyTenable Holdings generates revenue primarily through the sale of subscriptions to its cybersecurity solutions. The company offers a range of products, including Tenable.io and Nessus, which are available in both on-premises and cloud-based formats. Customers typically pay recurring fees for access to these platforms, which provide ongoing vulnerability assessments and risk management capabilities. Additionally, Tenable earns revenue from professional services, such as training and consulting, which support the implementation and optimization of its products. Partnerships with managed security service providers (MSSPs) and alliances with technology companies also contribute to its revenue by expanding its market reach and enhancing its product offerings.
Tenable Holdings Financial Statement Overview
Summary
Tenable Holdings demonstrates strong revenue growth and solid cash flow management, crucial for a software company in a competitive market. However, challenges persist in achieving profitability at the net income level. The balance sheet reflects low leverage, providing stability, but improvements in equity and profitability would enhance the financial standing further.Income Statement
Tenable Holdings shows a strong revenue growth trend, with a 12.7% increase from the previous year and a TTM revenue of $900M. Gross profit margin remains robust at 77.8% TTM, indicating efficient cost management. However, the company is still not profitable at the net income level, with a net loss of $36M TTM, impacting the net profit margin negatively at -4%. EBIT and EBITDA margins have improved, with EBIT turning positive, suggesting better operating efficiencies.76
Positive
Balance Sheet
The company's balance sheet is stable, with a manageable debt-to-equity ratio of 0.16 TTM, indicating low financial leverage. The equity ratio is moderate at 22.9% TTM, suggesting room for improvement in strengthening equity base. Return on equity remains negative due to net losses, but the company has maintained a strong cash position, which provides financial flexibility.68
Positive
Cash Flow
Tenable Holdings exhibits strong cash flow management, with operating cash flow significantly exceeding net income, reflected in a healthy operating cash flow to net income ratio of 5.99 TTM. Free cash flow has grown impressively by 46.9% from the previous year, supporting further investment and debt reduction strategies.81
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 900.02M | 798.71M | 683.19M | 541.13M | 440.22M | Gross Profit |
| 700.35M | 615.13M | 528.40M | 434.73M | 362.67M | EBIT |
| -6.86M | -52.16M | -67.81M | -41.77M | -36.43M | EBITDA |
| -6.86M | -8.95M | -44.09M | -27.56M | -26.44M | Net Income Common Stockholders |
| -36.30M | -78.28M | -92.22M | -46.68M | -42.73M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 577.19M | 473.97M | 567.43M | 512.29M | 291.85M | Total Assets |
| 1.74B | 1.61B | 1.44B | 1.25B | 690.59M | Total Debt |
| 63.02M | 413.31M | 420.40M | 422.09M | 58.34M | Net Debt |
| -265.62M | 176.18M | 119.54M | 144.09M | -119.88M | Total Liabilities |
| 1.34B | 1.26B | 1.17B | 1.03B | 539.92M | Stockholders Equity |
| 399.95M | 346.34M | 270.87M | 215.31M | 150.66M |
| Cash Flow | Free Cash Flow | |||
| 213.23M | 141.10M | 112.00M | 90.20M | 43.95M | Operating Cash Flow |
| 217.48M | 149.85M | 131.15M | 96.77M | 64.23M | Investing Cash Flow |
| -41.43M | -212.62M | -128.04M | -391.59M | 4.08M | Financing Cash Flow |
| -79.40M | 1.25M | 23.32M | 397.65M | 36.40M |
Tenable Holdings Technical Analysis
Negative
38.54
Price Trends
40.38
Negative
41.05
Negative
41.36
Negative
Market Momentum
-0.88
Positive
42.91
Neutral
43.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TENB, the sentiment is Negative. The current price of 38.54 is below the 20-day moving average (MA) of 39.21, below the 50-day MA of 40.38, and below the 200-day MA of 41.36, indicating a bearish trend. The MACD of -0.88 indicates Positive momentum. The RSI at 42.91 is Neutral, neither overbought nor oversold. The STOCH value of 43.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TENB.
Tenable Holdings Risk Analysis
Tenable Holdings disclosed 53 risk factors in its most recent earnings report. Tenable Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tenable Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $122.08B | 104.11 | 23.38% | ― | 13.86% | -46.44% | |
80 Outperform | $29.74B | ― | -3.24% | ― | 30.77% | 79.05% | |
78 Outperform | $17.46B | 1,777.39 | -5.91% | ― | 33.10% | -20.31% | |
77 Outperform | $96.10B | 721.64 | -0.69% | ― | 31.35% | ― | |
69 Neutral | $18.56B | 2,026.31 | 0.46% | ― | 15.33% | ― | |
63 Neutral | $4.58B | ― | -9.73% | ― | 12.68% | 54.80% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% |
* Technology Sector Average
Performance Comparison
TENB
Tenable Holdings
38.54
-8.18
-17.51%
PANW
Palo Alto Networks
184.28
41.04
28.65%
CYBR
CyberArk Software
361.97
99.91
38.12%
OKTA
Okta
116.31
4.82
4.32%
ZS
Zscaler
196.45
-4.82
-2.39%
CRWD
CrowdStrike Holdings
365.44
35.76
10.85%
Tenable Holdings Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -10.81% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance and growth in key business areas like Tenable One and Cloud Security, along with strategic acquisitions to enhance capabilities. However, there was some caution expressed regarding U.S. Federal sales due to administrative transitions. Overall, the sentiment is positive due to the outweighing highlights.Highlights
Strong Financial Performance
Tenable achieved 11% CCB growth, exceeding expectations by $7.5 million. Operating margin was 25%, significantly better than expected, and $86 million in unlevered free cash flow was generated, surpassing predictions.
Growth in Key Business Areas
Tenable One reached a record 40% of new business sales. Cloud Security sales more than doubled, with significant wins across both public and private sectors.
Strategic Acquisition of Vulcan Cyber
The acquisition will enhance data aggregation and automated remediation capabilities, integrating data from over 100 third-party security products.
Strong Customer Engagement
Added 485 new enterprise platform customers and 135 net new six-figure customers. Net dollar expansion rate was 108%.
Positive Sales Efficiency
Sales and marketing expense decreased as a percentage of revenue from 42% last year to 37%, showing a 450-basis-point improvement.
Lowlights
Caution in U.S. Federal Sales
Cautious outlook for U.S. Federal due to the transition of a new administration and the overhang of continuing resolutions.
Modest Revenue Growth Outlook
Revenue for the first quarter is expected to be in the range of $232 million to $234 million, indicating modest growth.
Company Guidance
During the conference call discussing Tenable's Q4 2024 financial results, the company provided guidance for Q1 and the full year 2025. They expect Q1 revenue between $232 million and $234 million, with non-GAAP income from operations ranging from $42 million to $44 million, and EPS between $0.28 and $0.30. For the full year 2025, Tenable anticipates revenue between $971 million and $981 million, non-GAAP income from operations between $213 million and $223 million, and EPS between $1.52 and $1.60. Calculated current billing is projected to be between $1.4 billion and $1.5 billion, with unlevered free cash flow expected to be $285 million to $295 million. The guidance excludes the potential impact of their acquisition of Vulcan Cyber, which is expected to contribute an additional 50 basis points to CCB and revenue growth for the year.Tenable Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Tenable Holdings Appoints New Principal Accounting Officer
Positive
Feb 20, 2025
On February 19, 2025, Tenable Holdings appointed J. Barron Anschutz as its principal accounting officer. Mr. Anschutz has been with the company since 2017, advancing through roles in finance and accounting. His appointment is not based on any special arrangement or family connections within the company. This decision reflects Tenable’s ongoing strategic leadership development, potentially strengthening its financial governance and operational efficiency.
M&A TransactionsBusiness Operations and Strategy
Tenable Holdings Acquires Vulcan Cyber for $150 Million
Positive
Jan 29, 2025
On January 29, 2025, Tenable Holdings announced a definitive agreement to acquire Vulcan Cyber Ltd. for approximately $147 million in cash and $3 million in restricted stock units. The acquisition, expected to close in the first quarter of 2025, aims to integrate Vulcan’s cyber risk management capabilities into Tenable’s Exposure Management platform, enhancing risk prioritization and remediation efforts. This strategic move is set to provide Tenable with a comprehensive approach to cyber risk management, potentially impacting the cybersecurity industry by offering a unified solution to manage exposure risks.
Executive/Board ChangesFinancial Disclosures
Tenable Holdings Announces Leadership Transition After CEO’s Passing
Neutral
Jan 6, 2025
Tenable Holdings announced the passing of its Chairman and CEO, Amit Yoran, who was a prominent figure in the cybersecurity industry. Following his medical leave, the company’s CFO, Steve Vintz, and COO, Mark Thurmond, were appointed interim Co-CEOs. The Board is conducting a search for a new CEO, while Art Coviello has been appointed Chairman of the Board. Despite this leadership transition, Tenable expects to meet or exceed its financial guidance for Q4 and the full year 2024.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.