Tenable Holdings, Inc. (NASDAQ: TENB) Q3 2024 Earnings Recap

Tenable Holdings, Inc., a cybersecurity company, reported robust financial results for its third quarter of 2024. Revenue reached $227.1 million, marking a 13% year-over-year increase. The earnings per share (EPS) stood at $0.32, and the company announced a $200 million expansion of its share repurchase program.

Key Highlights

• Revenue Growth: Q3 revenue of $227.1 million increased 13% YoY.
• EPS: Recorded at $0.32 with a share repurchase program increase of $200 million.
• Product Drive: Tenable One and Cloud Security significantly drove growth, with Tenable One contributing to 30% of new sales.
• Calculated Billings: Grew by 11% to $248.4 million.
• Operating Income: $45 million, with a 20% operating margin, up from 10% the prior year.
• Guidance: Q4 revenue expected between $229 million and $233 million.
• Future Target: Aiming for Free Cash Flow of $280 million to $290 million for 2025.

Company Outlook

• Q4 revenue forecasted between $229 million and $233 million.
• Full-year revenue guidance is $893.3 million to $897.3 million.
• Non-GAAP diluted EPS projected at $0.33 to $0.35.
• Unlevered free cash flow for 2024 targeted at $225 million to $235 million.

Market Challenges and Growth Drivers

• Bearish Points: Gross margin slightly decreased due to cloud infrastructure investment; net dollar expansion rate dipped to 108%.
• Bullish Factors: Tenable One and Cloud Security experienced strong demand, with notable growth in Tenable Cloud Security.
• Expansion Efforts: Continued innovations like AI Aware and AI Security Posture Management are expected to attract further interest.

Conclusion

Despite ongoing macroeconomic headwinds, Tenable Holdings, Inc. shows solid growth and resilience, focusing on enhancing its exposure management solutions and cloud security offerings. The increase in the repurchase program reflects confidence in future performance, as Tenable strengthens its market position.

This summary was generated with the support of AI and reviewed by an editor. For more information see our T&C.