Oscar Wong/Moment via Getty Images
Shares of Tenable (NASDAQ:TENB) on Wednesday jumped as much as 12.3%, after the cybersecurity firm reported a quarterly top and bottom line beat and provided profit guidance that was largely above expectations.
TENB stock was last up 5.1% to $50.07 in morning trade.
Tenable (TENB) after hours on Tuesday announced Q4 2023 adjusted earnings per share of 25 cents on revenue of $213.31M. Analysts had been expecting the company to earn 14 cents per share on revenue of $206.72M.
Columbia, Md.-based Tenable (TENB) provides products such as its Tenable One Exposure Management Platform and vulnerability scanning software Nessus. The firm also provides vulnerability management services and cloud security.
The company's Q4 results were driven by more customers signing up for its security products, with TENB adding 597 new enterprise platform customers (versus 386 in Q3) and 156 net new six-figure customers (more than 2 times higher sequentially) in the quarter.
"The takeaway here is that we're increasingly landing larger customers and helping our customers secure additional asset types across their attack surface," Tenable (TENB) top boss Amit Yoran said on an earnings conference call.
"To that end, we continue to see great traction with Tenable One, OT, cloud and identity, which collectively represent 50% of our new business in the quarter. This momentum gives us the confidence to make additional changes in the business," Yoran added.
Tenable's (TENB) Q4 calculated current billings, a key revenue metric for cybersecurity firms, climbed 14% Y/Y to $271.6M.
Turning to the company's guidance, TENB's revenue forecast was towards the weaker side. The firm sees Q1 2024 revenue of $212M to $214M, compared to a consensus estimate of $214.35M. For full year 2024, TENB sees revenue of $895M to $905M, versus an estimate of $905.37M.
However, Tenable (TENB) issued solid profit guidance, with Q1 adjusted earnings per share anticipated to be 16 cents to 18 cents and full year expected to be $1.03 to $1.10. Analysts expect earnings per share of 16 cents and 83 cents, respectively.
"Our guidance...also reflects an operating margin in the 17% to 18% range, which at the midpoint is a 220 basis point improvement over the prior year," Tenable (TENB) finance chief Steve Vintz said on the conference call.
"Looking ahead, we expect unlevered free cash flow margin to generally ramp through the year, with Q2 as the typical seasonal low point," Vintz added.
More on Tenable Holdings
- Securing The Digital Frontier: Tenable's Rise In The Cybersecurity Realm
- Tenable Holdings: An Attractive Play In The Growing Cybersecurity Sector
- 4 key supports and 4 key problems in Tech for 2024 - UBS
- AMZN, WDC and others could see post-earnings boost - Morgan Stanley's Mike Wilson
- Seeking Alpha's Quant Rating on Tenable Holdings