Shares of Tenable Holdings (TENB 5.29%) rose as much as 12.3% early Wednesday before closing the trading day at 5.3% after the cybersecurity company announced strong fourth-quarter 2023 results.
Customers are flocking to the Tenable One platform
For the quarter ending Dec. 31, Tenable’s quarterly revenue grew 16% year over year to $213.3 million, translating to adjusted non-GAAP (generally accepted accounting principles) earnings of $30.2 million, or $0.25 per share. On average, analysts were only modeling earnings of $0.14 per share on revenue of $206.7 million.
Tenable chairman and CEO Amit Yoran credited customers’ interest in cloud and identity solutions within the company’s Tenable One exposure management platform. “We delivered a strong Q4, including better-than-expected results on the top and bottom line,” he said in a press release.
The company added 597 new enterprise platform customers during the quarter, including 156 net new customers generating annual recurring revenue of at least $100,000. To be fair, those figures included 104 enterprise platform customers and 15 six-figure customers added via Tenable’s acquisition of Ermetic, which was completed in October 2023.
What’s next for Tenable investors?
For the full-year 2024, Tenable called for revenue of $895 million to $905 million, with adjusted earnings per share of $1.03 to $1.10. By comparison, most analysts were expecting lower 2024 earnings of $0.82 per share, albeit on revenue near the high end of Tenable’s guidance range.
Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
