Tenable shares drop on soft guidance despite earnings beat

EditorSenad Karaahmetovic
Published 02/06/2025, 05:30 AM
Tenable shares drop on soft guidance despite earnings beat

COLUMBIA, Md. - Tenable Holdings, Inc. (NASDAQ:TENB) saw its shares fall 5% in after-hours trading on Monday despite reporting better-than-expected fourth quarter earnings, as the company’s guidance fell short of analyst estimates.

The exposure management company reported fourth quarter adjusted earnings per share of $0.41, surpassing the analyst consensus of $0.34. Revenue for the quarter came in at $235.7 million, up 11% YoY and above the $231.54 million analysts had projected.

However, Tenable’s outlook for the first quarter and full year 2025 disappointed investors. The company forecast Q1 adjusted EPS of $0.28-$0.30, below the $0.33 consensus. Q1 revenue guidance of $232-234 million also fell short of the $235.7 million analysts expected. For the full year 2025, Tenable projects adjusted EPS of $1.52-$1.60 on revenue of $971-981 million, compared to consensus estimates of $1.45 EPS and $982.9 million in revenue.

"We are very pleased with the results for the quarter as we delivered better-than-expected CCB, revenue, operating income, EPS and unlevered free cash flow," said Steve Vintz, Co-CEO and CFO of Tenable. "Our outperformance was driven by strong traction in cloud and Tenable One as customers look to secure cloud and get a holistic view of their environment."

The company highlighted the addition of 485 new enterprise platform customers and 135 net new six-figure customers in the quarter. Tenable also announced plans to acquire Vulcan Cyber Ltd. to enhance its exposure management platform capabilities.

Despite the positive fourth quarter results, the softer-than-anticipated guidance appears to be weighing on investor sentiment, as reflected in the stock’s after-hours decline.

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

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