On February 5, 2025, Tenable Holdings, Inc. (Nasdaq: TENB), a leading exposure management company, announced its impressive financial results for the fourth quarter and the full year ending December 31, 2024. The report highlighted robust growth across various metrics, including revenue, operating income, and cash flow, reflecting Tenable's successful strategies in the cybersecurity landscape.

Key Highlights from Q4 2024

Tenable's fourth-quarter performance showcased a significant turnaround compared to the same period in the previous year:

Revenue climbed to $235.7 million, marking an 11% year-over-year increase.

Calculated current billings also rose 11% to $302.2 million.

GAAP income from operations reached $13.0 million, reversing a loss of $14.3 million from Q4 2023.

Non-GAAP income from operations surged to $59.4 million, up from $36.1 million in the year-ago quarter.

The company reported a GAAP net income of $1.9 million, compared to a loss of $21.6 million in Q4 2023.

Non-GAAP net income soared to $50.7 million, up from $30.2 million a year earlier.

Unlevered free cash flow reached $85.7 million, compared to $43.3 million in Q4 2023.

Tenable repurchased 1.2 million shares of common stock for $50.0 million.

Full Year 2024 Financial Results

For the entirety of 2024, Tenable demonstrated considerable growth:

Total revenue for the year was $900.0 million, up 13% year-over-year.

Calculated current billings reached $969.5 million, reflecting an 11% increase.

The GAAP loss from operations narrowed to $6.9 million, compared to $52.2 million in 2023.

Non-GAAP income from operations rose to $184.1 million, compared to $121.0 million in the previous year.

GAAP net loss was reduced to $36.3 million from $78.3 million in 2023.

The company ended the year with cash and cash equivalents totaling $577.2 million, up from $474.0 million in 2023.

2. Leadership Commentary

Steve Vintz, Co-CEO and CFO of Tenable, expressed satisfaction with the company’s performance, emphasizing the better-than-expected results across multiple financial metrics. He attributed the outperformance to strong traction in Tenable's cloud solutions and the comprehensive Tenable One platform, which has become crucial for customers seeking to secure their cloud environments.

Mark Thurmond, Co-CEO and COO, highlighted the company's ability to win significant contracts, noting that many of the new enterprise customers were drawn to Tenable One, reinforcing the firm's commitment to delivering value through customer-driven innovations.

3. Recent Business Developments

Tenable has made significant strides in expanding its product offerings and customer base:

The company added 485 new enterprise platform customers, including 135 net new six-figure customers.

Tenable announced its intent to acquire Vulcan Cyber Ltd., enhancing its capabilities in exposure management.

The launch of Tenable Patch Management aims to streamline vulnerability management, while updates to Tenable Vulnerability Intelligence have improved risk prioritization and analysis capabilities.

The release of the 2024 Tenable Cloud Risk Report provided critical insights into risk factors in modern cloud environments.

4. Financial Outlook

Looking ahead, Tenable provided guidance for the first quarter and the full year of 2025, excluding the impact of the Vulcan Cyber acquisition:

Q1 2025 Projections

Expected revenue: $232.0 million to $234.0 million

Non-GAAP income from operations: $42.0 million to $44.0 million

Non-GAAP net income: $35.0 million to $37.0 million

Non-GAAP diluted earnings per share: $0.28 to $0.30

Full Year 2025 Forecast

Projected calculated current billings: $1.040 billion to $1.055 billion

Expected revenue: $971.0 million to $981.0 million

Non-GAAP income from operations: $213.0 million to $223.0 million

Non-GAAP net income: $189.0 million to $199.0 million

Non-GAAP diluted earnings per share: $1.52 to $1.60

5. Conference Call Information

Tenable will conduct a conference call today at 4:30 p.m. Eastern Time to discuss these financial results. Interested participants can access the call at 877-407-9716 (U.S.) or 201-493-6779 (international), with a live webcast available on the Tenable Investor Relations website.

6. Conclusion

Tenable Holdings Inc.'s fourth-quarter and full-year results for 2024 reflect a strong recovery and growth trajectory in the cybersecurity sector. As organizations increasingly prioritize exposure management, Tenable's innovative solutions position it well for continued success in an evolving landscape. The company's strategic initiatives and financial outlook suggest a positive path forward as it seeks to enhance its market presence and deliver value to its stakeholders.

Original press release