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• Revenue: $239.1 million, representing 11% year-over-year growth.

• Gross Margin: 82%, consistent with the previous quarter.

• Operating Margin: 20%, approximately 300 basis points better than the midpoint of the guided range.

• EPS: $0.36 per share, $0.095 better than the midpoint of the guided range.

• Unlevered Free Cash Flow: $87 million, a record for the quarter.

• Calculated Current Billings: $215.4 million, 9% year-over-year growth.

• Current RPO Growth: 13% year-over-year.

• Net Dollar Expansion Rate: 108%.

• Sales and Marketing Expense: $85.5 million, 36% of revenue.

• R&D Expense: $39 million, 16% of revenue.

• G&A Expense: $22.7 million, 9% of revenue.

• Cash and Short-term Investments: $460 million.

• Deferred Revenue: $808 million, with $633 million current deferred revenue.

• Share Repurchase: 1.6 million shares for $60 million during the quarter.

• Warning! GuruFocus has detected 4 Warning Signs with TENB.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Tenable Holdings Inc (NASDAQ:TENB) reported 11% year-over-year revenue growth, exceeding their guided range by $5.1 million.

• The company achieved a 36% unlevered free cash flow margin, reflecting strong operating leverage.

• Tenable One platform drove significant sales acceleration, with the best quarter ever for seven-figure wins.

• The company is making progress in expanding integrations with third-party tools and data sources, enhancing their platform's capabilities.

• Tenable Holdings Inc (NASDAQ:TENB) is seeing strong momentum in cloud security and exposure management, with a notable increase in AI-related application detections.

Negative Points

• The company expressed caution due to macroeconomic uncertainties, particularly in the US public sector, impacting their guidance.

• Sales and marketing expenses increased, partly due to the annual sales kickoff conference, affecting operating margins.

• R&D expenses rose due to increased personnel costs from the Vulcan acquisition, impacting short-term profitability.

• Tenable Holdings Inc (NASDAQ:TENB) faces potential challenges from geopolitical events and policy actions that could lengthen sales cycles.

• The company acknowledged disruptions in the US public sector, particularly on the civilian side, affecting visibility and deal closure timelines.

Q & A Highlights

Q: Can you explain the rationale behind the cautious guidance for the year, given the strong start? A: Steve Vintz, Co-CEO and CFO, explained that the cautious guidance is due to ongoing macroeconomic uncertainties, particularly in the public sector. Despite a strong start and high demand generation, disruptions in personnel and leadership roles in the federal sector have reduced visibility. The company is taking a data-driven approach to assess longer lead times for procurement decisions, especially in the public sector, while also applying caution to the enterprise business due to potential geopolitical events.