Summary
Tenable opened fiscal 2024 with revenue of $215.96 million for the quarter ended March 31, 2024, up 14.4% from $188.84 million in the prior-year quarter. Gross profit rose 16.5% to $167.03 million, and gross margin improved to 77.3% from 75.9%. The company is still unprofitable on a GAAP basis, but the losses are shrinking. The operating loss narrowed to $8.93 million from $19.16 million a year earlier, and operating margin moved to -4.1% from -10.1%. Net loss of $14.39 million compared with $25.10 million, and diluted loss per share of $0.12 compared with $0.22.
Cash generation held up well. Operating cash flow of $50.33 million rose 29.9% from $38.75 million. Capital expenditures of $0.66 million rose 71.8% from the prior-year quarter but stayed small. On a non-GAAP basis, unlevered free cash flow was $54.7 million versus $44.2 million, and calculated current billings rose 12% to $197.8 million. Deferred revenue, current portion, of $562.58 million rose 14.8%, and total remaining performance obligations of $742.40 million rose 13.4%. Those balances underpin the subscription model and give some visibility into future revenue.
Subscription revenue was $197.6 million, up 16%, and recurring revenue represented 96% of total revenue, up from 95%. Non-GAAP income from operations reached $37.0 million versus $18.1 million, and non-GAAP operating margin was 17% against 10%. Non-GAAP net income was $30.4 million, or $0.25 per diluted share, versus $13.1 million and $0.11. Product news leaned on the platform story. Tenable launched Tenable One for OT and IoT Security and added generative AI features that summarize attack paths and suggest mitigations. Ratings agencies also moved in the company's direction, with Moody's upgrading the corporate family credit rating to Ba3 from B1 and S&P upgrading to BB- from B+.
Customer metrics were mixed. Tenable added 410 new enterprise platform customers in the quarter, and customers spending $100,000 or more in annual contract value reached 1,717, up 19%. The dollar-based net expansion rate slipped to 109% from 113%. Net new six-figure customers decreased by 4, which the company tied to an unusually high number of customers dropping below the six-figure threshold in the first quarter of 2023. Tenable recorded $1.4 million of restructuring charges tied to fewer sales specialists and streamlined management layers. It is negotiating to sublease part of its headquarters, a step that could produce a non-cash impairment of $6 million to $7 million in the quarter ending June 30, 2024. Management also expects longer purchasing and approval phases in the sales cycle during 2024.
Guidance for the second quarter of 2024 calls for non-GAAP income from operations of $34.0 million to $36.0 million, non-GAAP net income of $28.0 million to $30.0 million, and non-GAAP diluted earnings per share of $0.22 to $0.24. For the full year 2024, the company guides to calculated current billings of $986.0 million to $994.0 million, non-GAAP income from operations of $158.0 million to $163.0 million, non-GAAP net income of $135.0 million to $140.0 million, non-GAAP diluted earnings per share of $1.08 to $1.12, and unlevered free cash flow of $220.0 million to $230.0 million.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2024 | Q4 FY2023 | QoQ | Q1 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $216.0M | $213.3M | +1.2% | $188.8M | +14.4% |
| Gross profit | $167.0M | $164.5M | +1.5% | $143.3M | +16.5% |
| Gross margin | 77.3% | 77.1% | +0.2 pp | 75.9% | +1.4 pp |
| Research & development | $43.7M | $40.1M | +9.1% | $38.2M | +14.5% |
| Sales & marketing | $99.8M | $103.7M | -3.7% | $97.2M | +2.7% |
| General & administrative | $31.0M | $30.6M | +1.5% | $27.1M | +14.4% |
| Total operating expenses | $176.0M | $178.8M | -1.6% | $162.5M | +8.3% |
| Operating income (loss) | -$8.9M | -$14.3M | +37.8% | -$19.2M | +53.4% |
| Operating margin | -4.1% | -6.7% | +2.6 pp | -10.1% | +6.0 pp |
| Net income (loss) | -$14.4M | -$21.6M | +33.5% | -$25.1M | +42.7% |
| Net margin | -6.7% | -10.2% | +3.5 pp | -13.3% | +6.6 pp |
| Diluted EPS | -$0.12 | -$0.19 | +$0.07 | -$0.22 | +$0.10 |
| Customers | 188,839 | 44,000 | +329.2% | 159,368 | +18.5% |
Risks
Tenable has incorporated AI features such as ExposureAI and Tenable AI Assistant, but generative AI at scale is relatively new and may generate inaccurate, insecure, or flawed output, leading to customer rejection, reputational harm, or legal liability.
Uncertainty in the legal regime for AI, including the EU AI Act and other proposed or developing regulations, may require significant resources to modify business practices and increase the risk of regulatory enforcement and litigation.
Unauthorized use or misuse of AI by employees or others may result in disclosure of confidential company and customer data, privacy law violations, reputational harm, and novel cybersecurity risks related to personal data.
MD&A states sales cycles improved in the three months ended March 31, 2024, but the company continues to expect longer purchasing and approval phases of its sales cycle during 2024.
The dollar-based net expansion rate was 109% at March 31, 2024 versus 113% at March 31, 2023, reflecting the company's dependence on retention and additional sales to existing customers.
Restructuring expenses of $1.4 million in the three months ended March 31, 2024 related to go-to-market optimization, reduced reliance on sales specialists, and streamlining management layers; a headquarters sublease could result in a non-cash impairment charge of $6 million to $7 million in the three months ending June 30, 2024.
Complex accounting rules and significant estimates, including the estimated economic life of perpetual licenses, deferred commissions, stock-based compensation, and deferred tax assets, could cause unexpected financial reporting fluctuations or increased compliance costs if assumptions change.
New climate disclosure rules such as the Corporate Sustainability Reporting Directive, California climate legislation, and SEC climate-related requirements, plus SEC cybersecurity incident disclosure rules, heighten compliance costs and risk of investigations, litigation, or reputational harm.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Calculated Current Billings
New Enterprise Platform Customers Added
Unlevered Free Cash Flow
Free Cash Flow
Non-GAAP Gross Margin
Dollar-Based Net Expansion Rate (LTM)
Recurring Revenue % of Revenue
Non-GAAP Income from Operations
Remaining Performance Obligations
Summary, forecast, risks and KPIs are extracted from Tenable Holdings, Inc.'s SEC filings for Q1 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 6, 2026.