Summary
Tenable's FY2024 second quarter revenue was $221.24 million, up 13.4% year over year. Gross profit was $172.44 million, up 13.8%, and gross margin was 77.9%, up 0.3 percentage points from the prior-year quarter. GAAP operating loss was $8.82 million, a narrowed loss, and GAAP operating margin was -4.0%, up 1.5 percentage points. GAAP net loss was $14.57 million, a narrowed loss, and GAAP diluted EPS was -$0.12, a narrowed loss per share. On a non-GAAP basis, income from operations was $42.8 million, operating margin was 19%, net income was $38.2 million, and diluted EPS was $0.31.
Calculated current billings, a non-GAAP measure, was $221.1 million, up 10% year over year. Current deferred revenue was $562.59 million, up 13.6%. Remaining performance obligations were $747.50 million, up 12.8%. Net cash provided by operating activities was $31.42 million, up 4.1%. Capital expenditures were $0.53 million, down 26.0%. Free cash flow was $28.7 million, and unlevered free cash flow was $36.5 million, compared with $39.8 million in the prior-year quarter.
Tenable added 408 new enterprise platform customers in the quarter, down 4% from the prior-year quarter. The company had 1,793 customers with $100,000 and greater in annual contract value at quarter end, up 19%. Its dollar-based net expansion rate was 109%, compared with 111% a year earlier. Recurring revenue represented 96% of revenue in the quarter, up from 95%. Tenable acquired Eureka Security, a provider of data security posture management for cloud environments, for approximately $29 million in cash. It also formed a strategic alliance with Deloitte and expanded availability of Tenable Cloud Security and Tenable Vulnerability Management to Amazon Web Services in Abu Dhabi.
The company noted that it typically enters into a significantly higher percentage of agreements with new and existing customers in the third and fourth quarters. The third-quarter increase is driven mainly by U.S. government and related agencies, and the fourth quarter by large enterprise buying patterns typical in the software industry. Tenable expects longer purchasing and approval phases of its sales cycle to continue throughout 2024.
For the third quarter of 2024, Tenable guided to non-GAAP income from operations of $42.0 million to $44.0 million, non-GAAP net income of $35.0 million to $37.0 million, and non-GAAP diluted EPS of $0.28 to $0.30. For the full year ending December 31, 2024, it guided to calculated current billings of $957.0 million to $967.0 million, non-GAAP income from operations of $167.0 million to $171.0 million, non-GAAP net income of $143.0 million to $147.0 million, non-GAAP diluted EPS of $1.16 to $1.19, and unlevered free cash flow of $225.0 million to $235.0 million.
Risks remain. GAAP operating loss and net loss persist, and the company expects to continue incurring operating losses in the near term. It may not sustain positive cash flows from operations and free cash flow in future periods. The market for exposure management is competitive and changes rapidly. Customer agreement timing can vary, and calculated current billings in any one period can be affected by the timing and amount of new sales, renewals, early renewals, the mix of subscriptions and perpetual licenses, professional services billing, and multi-year prepaid contracts. The dollar-based net expansion rate declined to 109% from 111%, and new enterprise platform customer additions fell 4%. Tenable also completed an acquisition for approximately $29 million in cash and incurred restructuring costs. The company believes its existing cash and investments will be sufficient to fund operating and capital needs for at least the next 12 months and for the foreseeable future.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2024 | Q1 FY2024 | QoQ | Q2 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $221.2M | $216.0M | +2.4% | $195.0M | +13.4% |
| Gross profit | $172.4M | $167.0M | +3.2% | $151.5M | +13.8% |
| Gross margin | 77.9% | 77.3% | +0.6 pp | 77.7% | +0.3 pp |
| Research & development | $45.1M | $43.7M | +3.3% | $37.8M | +19.3% |
| Sales & marketing | $101.1M | $99.8M | +1.3% | $97.8M | +3.4% |
| General & administrative | $30.3M | $31.0M | -2.3% | $26.6M | +13.8% |
| Total operating expenses | $181.3M | $176.0M | +3.0% | $162.3M | +11.7% |
| Operating income (loss) | -$8.8M | -$8.9M | +1.3% | -$10.7M | +17.9% |
| Operating margin | -4.0% | -4.1% | +0.1 pp | -5.5% | +1.5 pp |
| Net income (loss) | -$14.6M | -$14.4M | -1.3% | -$16.0M | +8.8% |
| Net margin | -6.6% | -6.7% | +0.1 pp | -8.2% | +1.6 pp |
| Diluted EPS | -$0.12 | -$0.12 | ±$0.00 | -$0.14 | +$0.02 |
| Customers | 383,875 | 188,839 | +103.3% | 323,709 | +18.6% |
Risks
As a cybersecurity vendor, Tenable says it may be at increased risk of cyberattacks designed to penetrate its platform or internal systems, alter source code, or impede product performance. It warns that compromise of its solutions could simultaneously affect a significant number or all of its customers and their data, and that errors, defects, or failures to detect vulnerabilities could cause liability and reputational harm.
The filing highlights reliance on third-party service providers and technologies, including AWS, for critical business systems, and notes that liability limitations in those agreements may prevent recovery of customer damages. It cites the July 2024 CrowdStrike software update outage as an example of a third-party SaaS error causing widespread customer disruptions.
Tenable has incorporated AI features such as ExposureAI and Tenable AI Assistant and warns these are new and developing, may generate inaccurate, insecure, harmful, or flawed output, and may not achieve market acceptance. Emerging AI regulations, including the EU AI Act, could impose obligations and increase regulatory enforcement and litigation risk.
The filing says new climate disclosure rules, including the Corporate Sustainability Reporting Directive, California climate legislation, and SEC climate-related requirements, may require greenhouse gas emissions data and assurance, increasing compliance costs and risk of investigations or litigation. It also notes SEC rules requiring four-business-day disclosure of material cybersecurity incidents.
MD&A states Tenable expects longer purchasing and approval phases of its sales cycle to continue throughout 2024, which could delay agreement timing and revenue recognition. It also says it typically enters a significantly higher percentage of new and renewal agreements in the third and fourth quarters, creating seasonality.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Calculated Current Billings
Unlevered Free Cash Flow
Free Cash Flow
Net New Six-Figure Customers
Dollar-Based Net Expansion Rate
Recurring Revenue % of Revenue
Remaining Performance Obligations
Organizations relying on Tenable
Remaining Performance Obligations, Short-Term
Summary, forecast, risks and KPIs are extracted from Tenable Holdings, Inc.'s SEC filings for Q2 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.