Tenable Holdings, Inc. (“Tenable”) (Nasdaq: TENB), the Exposure
Management company, today announced financial results for the
quarter and year ended December 31, 2023.
“We delivered a strong Q4, including better-than-expected
results on the top and bottom line,” said Amit Yoran, Chairman and
CEO of Tenable. “Underpinning our results was strength in Tenable
One, driven by strong adoption of cloud and identity, as well as
continued traction in OT. We are optimizing the business as we
leverage the investments we have made to broaden
our offerings and bring greater value to our customers.”
Fourth Quarter 2023
Financial Highlights
- Revenue was $213.3 million, a 16%
increase year-over-year.
- Calculated current billings was
$271.6 million, a 14% increase year-over-year.
- GAAP loss from operations was $14.3
million, compared to a loss of $14.1 million in the fourth quarter
of 2022.
- Non-GAAP income from operations was
$36.1 million, compared to $19.9 million in the fourth quarter of
2022.
- GAAP net loss was $21.6 million,
compared to $21.5 million in the fourth quarter of 2022.
- GAAP net loss per share was $0.19 in
the fourth quarter of 2023 and in the fourth quarter of 2022.
- Non-GAAP net income was $30.2
million, compared to $14.2 million in the fourth quarter of
2022.
- Non-GAAP diluted earnings per share
was $0.25, compared to $0.12 in the fourth quarter of 2022.
- Net cash provided by operating
activities was $38.5 million, compared to $31.9 million in the
fourth quarter of 2022.
- Unlevered free cash flow was $43.3
million, compared to $32.1 million in the fourth quarter of
2022.
- Repurchased 0.4 million shares
of our common stock for $14.9 million.
Full Year 2023
Financial Highlights
- Revenue was $798.7 million, a 17%
increase year-over-year.
- Calculated current billings was
$873.3 million, a 12% increase year-over-year.
- GAAP loss from operations was $52.2
million, compared to $67.8 million in 2022.
- Non-GAAP income from operations was
$121.0 million, compared to $67.7 million in 2022.
- GAAP net loss was $78.3 million,
compared to $92.2 million in 2022.
- GAAP net loss per share was $0.68,
compared to $0.83 in 2022.
- Non-GAAP net income was $97.2
million, compared to $44.3 million in 2022.
- Non-GAAP diluted earnings per share
was $0.80, compared to $0.38 in 2022.
- Cash and cash equivalents and
short-term investments were $474.0 million at December 31, 2023,
compared to $567.4 million at December 31, 2022.
- Net cash provided by operating
activities was $149.9 million, compared to $131.2 million in
2022.
- Unlevered free cash flow was $175.4
million, compared to $128.1 million in 2022.
Fourth Quarter 2023
and Recent Business
Highlights
- Added 597 new enterprise platform
customers and 156 net new six-figure customers(1).
- Achieved "Ready" designation for
Tenable Cloud Security (via Ermetic) at the moderate impact level
from the Federal Risk and Authorization Management Program
(FedRAMP®).
- Expanded our partnership with
Siemens Energy to further secure operational technology (OT)
environments in the energy sector. Siemens Energy will integrate
Tenable OT Security into their Omnivise T3000 control system as a
network intrusion detection system (NIDS), in addition to already
leveraging Tenable OT Security for asset discovery and
vulnerability management.
- Named a Leader in IDC's 2023
MarketScape report on Risk-Based VM Platforms.
- Recognized as a Leader in the Cloud
Security category of the inaugural report, The Next Generation of
Cybersecurity Applications, executed and launched by
Snowflake.
(1) Includes 104 enterprise platform customers and 15 six-figure
customers added in connection with our acquisition of Ermetic.
Financial Outlook
For the first quarter of 2024, we currently expect:
- Revenue in the range of $212.0 to
$214.0 million.
- Non-GAAP income from operations in
the range of $27.0 million to $29.0 million.
- Non-GAAP net income in the range of
$20.0 million to $22.0 million, assuming interest income of
$5.2 million, interest expense of $8.2 million and a
provision for income taxes of $3.9 million.
- Non-GAAP diluted earnings per share
in the range of $0.16 to $0.18.
- 123.0 million diluted weighted
average shares outstanding.
For the year ending December 31, 2024, we currently expect:
- Calculated current billings in the
range of $982.0 million to $992.0 million.
- Revenue in the range of
$895.0 million to $905.0 million.
- Non-GAAP income from operations in
the range of $152.0 million to $160.0 million.
- Non-GAAP net income in the range of
$129.0 million to $137.0 million, assuming interest income of
$21.7 million, interest expense of $32.2 million and a
provision for income taxes of $10.6 million.
- Non-GAAP diluted earnings per share
in the range of $1.03 to $1.10.
- 125.0 million diluted weighted
average shares outstanding.
- Unlevered free cash flow in the
range of $220.0 million to $230.0 million.
Conference Call Information
Tenable will host a conference call today, February 6,
2024, at 4:30 p.m. Eastern Time to discuss its financial results.
The conference call can be accessed at 877-407-9716 (U.S.) and
201-493-6779 (international). A live webcast of the event will be
available on the Tenable Investor Relations website at
https://investors.tenable.com. An archived replay of the live
broadcast will be available on the Investor Relations page of the
website following the call.
About Tenable
Tenable® is the Exposure Management company. Approximately
44,000 organizations around the globe rely on Tenable to understand
and reduce cyber risk. As the creator of Nessus®, Tenable extended
its expertise in vulnerabilities to deliver the world’s first
platform to see and secure any digital asset on any computing
platform. Tenable customers include approximately 65 percent of the
Fortune 500, approximately 50 percent of the Global 2000, and large
government agencies. Learn more at tenable.com.
Contact Information
Investor Relationsinvestors@tenable.com
Media Relationstenablepr@tenable.com
Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. All statements contained
in this press release other than statements of historical fact,
including statements regarding our future results of operations and
financial position, business strategy and plans and objectives for
future operations, are forward-looking statements and represent our
views as of the date of this press release. The words “anticipate,”
"believe,” “continue,” “estimate,” “expect,” “intend,” “may,”
“will” and similar expressions are intended to identify
forward-looking statements. We have based these forward-looking
statements on our current expectations and projections about future
events and financial trends that we believe may affect our
financial condition, results of operations, business strategy,
short-term and long-term business operations and objectives and
financial needs. These forward-looking statements are subject to a
number of assumptions and risks and uncertainties, many of which
involve factors or circumstances that are beyond our control that
could affect our financial results. These risks and uncertainties
are detailed in the sections titled "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in our Annual Report on Form 10-K for the
year ended December 31, 2022, our Quarterly Report on Form 10-Q for
the quarter ended September 30, 2023 and other filings that we make
from time to time with the SEC, which are available on the SEC's
website at sec.gov. Moreover, we operate in a very competitive and
rapidly changing environment. New risks emerge from time to time.
It is not possible for our management to predict all risks, nor can
we assess the impact of all factors on our business or the extent
to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any
forward-looking statements we may make. In light of these risks,
uncertainties and assumptions, the future events and trends
discussed in this press release may not occur and actual results
could differ materially and adversely from those anticipated or
implied in any forward-looking statements. Except as required by
law, we are under no obligation to update these forward-looking
statements subsequent to the date of this press release, or to
update the reasons if actual results differ materially from those
anticipated in the forward-looking statements.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with GAAP, we use
certain non-GAAP financial measures, as described below, to
understand and evaluate our core operating performance.
These non-GAAP financial measures, which may be different
than similarly titled measures used by other companies, are
presented to enhance the overall understanding of our financial
performance and should not be considered a substitute for, or
superior to, the financial information prepared and presented in
accordance with GAAP.
We believe that these non-GAAP financial measures
provide useful information about our financial performance, enhance
the overall understanding of our past performance and future
prospects and allow for greater transparency with respect to
important metrics used by management for financial and operational
decision-making. We include these non-GAAP financial measures to
present our financial performance using a management view and
because we believe that these measures provide an additional
comparison of our core financial performance over multiple periods
with other companies in our industry.
Reconciliations of non-GAAP financial measures to the most
directly comparable GAAP financial measures are included in the
financial tables accompanying this press release.
Calculated Current Billings: We define calculated current
billings, a non-GAAP financial measure, as total revenue recognized
in a period plus the change in current deferred revenue in the
corresponding period. We believe that calculated current billings
is a key metric to measure our periodic performance. Given that
most of our customers pay in advance (including multi-year
contracts), but we generally recognize the related revenue ratably
over time, we use calculated current billings to measure and
monitor our ability to provide our business with the working
capital generated by upfront payments from our customers. We
believe that calculated current billings, which excludes deferred
revenue for periods beyond twelve months in a customer’s
contractual term, more closely correlates with annual contract
value and that the variability in total billings, depending on the
timing of large multi-year contracts and the preference for annual
billing versus multi-year upfront billing, may distort growth in
one period over another.
Free Cash Flow and Unlevered Free Cash Flow: We define free cash
flow, a non-GAAP financial measure, as net cash provided by
operating activities less purchases of property and equipment and
capitalized software development costs. We believe free cash
flow is an important liquidity measure of the cash that is
available (if any), after purchases of property and equipment and
capitalized software development costs, for investment in our
business and to make acquisitions. We believe that free cash flow
is useful as a liquidity measure because it measures our ability to
generate or use cash. We define unlevered free cash flow as free
cash flow plus cash paid for interest and other financing costs. We
believe unlevered free cash flow is useful as a liquidity measure
as it measures the cash that is available to invest in our business
and meet our current debt obligations and future financing needs.
However, given our debt obligations, non-cancelable commitments and
other contractual obligations, unlevered free cash flow does not
represent residual cash flow available for discretionary
expenses.
Non-GAAP Income from Operations and Non-GAAP Operating Margin:
We define these non-GAAP financial measures as their respective
GAAP measures, excluding the effect of stock-based compensation,
acquisition-related expenses, restructuring expenses, costs related
to the intra-entity asset transfers resulting from the internal
restructuring of legal entities, and amortization of acquired
intangible assets. Acquisition-related expenses include transaction
and integration expenses, as well as costs related to the
intercompany transfer of acquired intellectual property.
Restructuring expenses include non-ordinary course severance,
employee related benefits, and other charges. We believe that the
exclusion of these expenses provides for a useful comparison of our
operating results to prior periods and to our peer companies, which
commonly exclude restructuring expenses.
Non-GAAP Net Income and Non-GAAP Earnings Per Share: We define
non-GAAP net income as GAAP net loss, excluding the effect of
stock-based compensation, acquisition-related expenses,
restructuring expenses and amortization of acquired intangible
assets, including the applicable tax impacts. In addition, we
exclude the tax impact and related costs of intra-entity asset
transfers resulting from the internal restructuring of legal
entities as well as deferred income tax benefits recognized in
connection with acquisitions. We use non-GAAP net income to
calculate non-GAAP earnings per share.
Non-GAAP Gross Profit and Non-GAAP Gross Margin: We define
non-GAAP gross profit as GAAP gross profit, excluding the effect of
stock-based compensation and amortization of acquired intangible
assets. Non-GAAP gross margin is defined as non-GAAP gross profit
as a percentage of revenue.
Non-GAAP Sales and Marketing Expense, Non-GAAP Research and
Development Expense and Non-GAAP General and Administrative
Expense: We define these non-GAAP measures as their respective GAAP
measures, excluding stock-based compensation, acquisition-related
expenses and costs related to intra-entity asset transfers
resulting from the internal restructuring of legal entities.
|
TENABLE HOLDINGS, INC.CONSOLIDATED
STATEMENTS OF OPERATIONS(unaudited) |
| |
| |
Three Months EndedDecember
31, |
|
Year Ended December 31, |
|
(in thousands, except per share data) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Revenue |
$ |
213,306 |
|
|
$ |
184,631 |
|
|
$ |
798,710 |
|
|
$ |
683,191 |
|
| Cost of revenue(1) |
|
48,803 |
|
|
|
45,240 |
|
|
|
183,577 |
|
|
|
154,789 |
|
| Gross profit |
|
164,503 |
|
|
|
139,391 |
|
|
|
615,133 |
|
|
|
528,402 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
Sales and marketing(1) |
|
103,700 |
|
|
|
91,311 |
|
|
|
393,450 |
|
|
|
349,430 |
|
|
Research and development(1) |
|
40,083 |
|
|
|
36,911 |
|
|
|
153,163 |
|
|
|
143,560 |
|
|
General and administrative(1) |
|
30,567 |
|
|
|
25,258 |
|
|
|
116,181 |
|
|
|
103,227 |
|
|
Restructuring |
|
4,499 |
|
|
|
— |
|
|
|
4,499 |
|
|
|
— |
|
| Total operating expenses |
|
178,849 |
|
|
|
153,480 |
|
|
|
667,293 |
|
|
|
596,217 |
|
| Loss from operations |
|
(14,346 |
) |
|
|
(14,089 |
) |
|
|
(52,160 |
) |
|
|
(67,815 |
) |
|
Interest income |
|
5,377 |
|
|
|
3,538 |
|
|
|
24,700 |
|
|
|
6,284 |
|
|
Interest expense |
|
(8,131 |
) |
|
|
(6,755 |
) |
|
|
(31,339 |
) |
|
|
(19,001 |
) |
|
Other (expense) income, net |
|
(609 |
) |
|
|
123 |
|
|
|
(8,602 |
) |
|
|
(4,757 |
) |
| Loss before income taxes |
|
(17,709 |
) |
|
|
(17,183 |
) |
|
|
(67,401 |
) |
|
|
(85,289 |
) |
| Provision for income
taxes |
|
3,939 |
|
|
|
4,304 |
|
|
|
10,883 |
|
|
|
6,933 |
|
| Net loss |
$ |
(21,648 |
) |
|
$ |
(21,487 |
) |
|
$ |
(78,284 |
) |
|
$ |
(92,222 |
) |
| |
|
|
|
|
|
|
|
| Net loss per share, basic and
diluted |
$ |
(0.19 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.68 |
) |
|
$ |
(0.83 |
) |
| Weighted-average shares used
to compute net loss per share, basic and diluted |
|
116,717 |
|
|
|
112,742 |
|
|
|
115,408 |
|
|
|
111,321 |
|
_______________(1) Includes stock-based compensation as
follows:
| |
Three Months EndedDecember
31, |
|
Year Ended December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Cost of revenue |
$ |
2,705 |
|
$ |
2,401 |
|
$ |
11,247 |
|
$ |
8,369 |
| Sales and marketing |
|
14,700 |
|
|
12,963 |
|
|
61,322 |
|
|
49,383 |
| Research and development |
|
9,354 |
|
|
8,205 |
|
|
37,225 |
|
|
31,499 |
| General and
administrative |
|
9,756 |
|
|
7,110 |
|
|
35,533 |
|
|
31,382 |
|
Total stock-based compensation |
$ |
36,515 |
|
$ |
30,679 |
|
$ |
145,327 |
|
$ |
120,633 |
|
TENABLE HOLDINGS, INC.CONSOLIDATED BALANCE
SHEETS(unaudited) |
| |
| |
December 31, |
|
(in thousands, except per share data) |
|
2023 |
|
|
|
2022 |
|
| Assets |
|
|
|
| Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
237,132 |
|
|
$ |
300,866 |
|
|
Short-term investments |
|
236,840 |
|
|
|
266,569 |
|
|
Accounts receivable (net of allowance for doubtful accounts of $470
and $1,400 at December 31, 2023 and 2022, respectively) |
|
220,060 |
|
|
|
187,341 |
|
|
Deferred commissions |
|
49,559 |
|
|
|
44,270 |
|
|
Prepaid expenses and other current assets |
|
61,882 |
|
|
|
58,121 |
|
| Total current assets |
|
805,473 |
|
|
|
857,167 |
|
| Property and equipment,
net |
|
45,436 |
|
|
|
46,726 |
|
| Deferred commissions (net of
current portion) |
|
72,394 |
|
|
|
67,238 |
|
| Operating lease right-of-use
assets |
|
34,835 |
|
|
|
38,495 |
|
| Acquired intangible assets,
net |
|
107,017 |
|
|
|
75,376 |
|
| Goodwill |
|
518,539 |
|
|
|
316,520 |
|
| Other assets |
|
23,177 |
|
|
|
38,008 |
|
| Total assets |
$ |
1,606,871 |
|
|
$ |
1,439,530 |
|
| |
|
|
|
| Liabilities and
Stockholders' Equity |
|
|
|
| Current liabilities: |
|
|
|
|
Accounts payable and accrued expenses |
$ |
16,941 |
|
|
$ |
18,722 |
|
|
Accrued compensation |
|
66,492 |
|
|
|
52,620 |
|
|
Deferred revenue |
|
580,779 |
|
|
|
502,115 |
|
|
Operating lease liabilities |
|
5,971 |
|
|
|
5,821 |
|
|
Other current liabilities |
|
5,655 |
|
|
|
4,882 |
|
| Total current liabilities |
|
675,838 |
|
|
|
584,160 |
|
| Deferred revenue (net of
current portion) |
|
169,718 |
|
|
|
162,487 |
|
| Term loan, net of issuance
costs (net of current portion) |
|
359,281 |
|
|
|
361,970 |
|
| Operating lease liabilities
(net of current portion) |
|
48,058 |
|
|
|
52,611 |
|
| Other liabilities |
|
7,632 |
|
|
|
7,436 |
|
| Total liabilities |
|
1,260,527 |
|
|
|
1,168,664 |
|
| Stockholders’ equity: |
|
|
|
|
Common stock (par value: $0.01; 500,000 shares authorized, 117,504
and 113,056 shares issued at December 31, 2023 and 2022,
respectively) |
|
1,175 |
|
|
|
1,131 |
|
|
Additional paid-in capital |
|
1,185,100 |
|
|
|
1,017,837 |
|
|
Treasury stock (at cost: 356 and 0 shares at December 31, 2023 and
2022, respectively) |
|
(14,934 |
) |
|
|
— |
|
|
Accumulated other comprehensive income (loss) |
|
38 |
|
|
|
(1,351 |
) |
|
Accumulated deficit |
|
(825,035 |
) |
|
|
(746,751 |
) |
| Total stockholders’
equity |
|
346,344 |
|
|
|
270,866 |
|
| Total liabilities and
stockholders' equity |
$ |
1,606,871 |
|
|
$ |
1,439,530 |
|
|
TENABLE HOLDINGS, INC.CONSOLIDATED
STATEMENTS OF CASH FLOWS(unaudited) |
| |
| |
Year Ended December 31, |
|
(in thousands) |
|
2023 |
|
|
|
2022 |
|
| Cash flows from
operating activities: |
|
|
|
| Net loss |
$ |
(78,284 |
) |
|
$ |
(92,222 |
) |
| Adjustments to reconcile net
loss to net cash provided by operating activities: |
|
|
|
|
Deferred income taxes |
|
265 |
|
|
|
(2,781 |
) |
|
Depreciation and amortization |
|
27,108 |
|
|
|
22,194 |
|
|
Stock-based compensation |
|
145,327 |
|
|
|
120,633 |
|
|
Net accretion of discounts and amortization of premiums on
short-term investments |
|
(8,323 |
) |
|
|
(1,199 |
) |
|
Impairment of other investments |
|
5,617 |
|
|
|
— |
|
|
Amortization of debt issuance costs |
|
1,267 |
|
|
|
1,299 |
|
|
Other |
|
1,914 |
|
|
|
5,404 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
(30,042 |
) |
|
|
(51,256 |
) |
|
Prepaid expenses and other assets |
|
1,689 |
|
|
|
(2,929 |
) |
|
Accounts payable, accrued expenses and accrued compensation |
|
7,071 |
|
|
|
409 |
|
|
Deferred revenue |
|
81,755 |
|
|
|
132,622 |
|
|
Other current and noncurrent liabilities |
|
(5,509 |
) |
|
|
(1,023 |
) |
|
Net cash provided by operating activities |
|
149,855 |
|
|
|
131,151 |
|
| |
|
|
|
| Cash flows from
investing activities: |
|
|
|
| Purchases of property and
equipment |
|
(1,704 |
) |
|
|
(9,359 |
) |
| Capitalized software
development costs |
|
(7,052 |
) |
|
|
(9,789 |
) |
| Purchases of short-term
investments |
|
(278,209 |
) |
|
|
(266,693 |
) |
| Sales and maturities of
short-term investments |
|
317,651 |
|
|
|
234,569 |
|
| Purchases of other
investments |
|
— |
|
|
|
(10,000 |
) |
| Business combinations, net of
cash acquired |
|
(243,301 |
) |
|
|
(66,767 |
) |
|
Net cash used in investing activities |
|
(212,615 |
) |
|
|
(128,039 |
) |
| |
|
|
|
| Cash flows from
financing activities: |
|
|
|
| Payments on term loan |
|
(3,750 |
) |
|
|
(3,750 |
) |
| Proceeds from stock issued in
connection with the employee stock purchase plan |
|
16,224 |
|
|
|
14,791 |
|
| Proceeds from the exercise of
stock options |
|
3,501 |
|
|
|
11,721 |
|
| Purchase of treasury
stock |
|
(14,934 |
) |
|
|
— |
|
| Other financing
activities |
|
210 |
|
|
|
556 |
|
|
Net cash provided by financing activities |
|
1,251 |
|
|
|
23,318 |
|
| Effect of exchange rate
changes on cash and cash equivalents and restricted cash |
|
(2,225 |
) |
|
|
(3,835 |
) |
| Net (decrease) increase in
cash and cash equivalents and restricted cash |
|
(63,734 |
) |
|
|
22,595 |
|
| Cash and cash equivalents and
restricted cash at beginning of year |
|
300,866 |
|
|
|
278,271 |
|
| Cash and cash
equivalents and restricted cash at end of year |
$ |
237,132 |
|
|
$ |
300,866 |
|
|
TENABLE HOLDINGS, INC.REVENUE COMPONENTS
AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES(unaudited) |
| |
| Revenue |
Three Months EndedDecember
31, |
|
Year Ended December 31, |
| (in
thousands) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Subscription revenue |
$ |
193,880 |
|
$ |
166,253 |
|
$ |
725,013 |
|
$ |
612,510 |
| Perpetual license and
maintenance revenue |
|
12,194 |
|
|
12,485 |
|
|
48,729 |
|
|
50,699 |
| Professional services and
other revenue |
|
7,232 |
|
|
5,893 |
|
|
24,968 |
|
|
19,982 |
|
Revenue(1) |
$ |
213,306 |
|
$ |
184,631 |
|
$ |
798,710 |
|
$ |
683,191 |
_______________(1) Recurring revenue, which includes revenue
from subscription arrangements for software (both recognized
ratably over the subscription term and upon delivery) and
cloud-based solutions and maintenance associated with perpetual
licenses, represented 95% of revenue in the three months and years
ended December 31, 2023 and 2022.
| Calculated Current
Billings |
Three Months EndedDecember
31, |
|
Year Ended December 31, |
|
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Revenue |
$ |
213,306 |
|
|
$ |
184,631 |
|
|
$ |
798,710 |
|
|
$ |
683,191 |
|
| Deferred revenue (current),
end of period |
|
580,779 |
|
|
|
502,115 |
|
|
|
580,779 |
|
|
|
502,115 |
|
| Deferred revenue (current),
beginning of period(1) |
|
(522,449 |
) |
|
|
(447,863 |
) |
|
|
(506,192 |
) |
|
|
(408,443 |
) |
|
Calculated current billings |
$ |
271,636 |
|
|
$ |
238,883 |
|
|
$ |
873,297 |
|
|
$ |
776,863 |
|
_______________(1) Deferred revenue (current), beginning of
period for the three months ended December 31, 2023 and year ended
December 31, 2023 and 2022 includes $4.1 million,
$4.1 million and $0.9 million, respectively, related to
acquired deferred revenue.
| Remaining Performance
Obligations |
At December 31, |
|
(in thousands) |
2023 |
|
2022 |
|
Remaining performance obligations, short-term |
$ |
595,053 |
|
$ |
513,325 |
| Remaining performance
obligations, long-term |
|
179,955 |
|
|
167,073 |
|
Remaining performance obligations |
$ |
775,008 |
|
$ |
680,398 |
| Free Cash Flow and
Unlevered Free Cash Flow |
Three Months EndedDecember
31, |
|
Year Ended December 31, |
|
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Net cash provided by operating
activities |
$ |
38,505 |
|
|
$ |
31,918 |
|
|
$ |
149,855 |
|
|
$ |
131,151 |
|
| Purchases of property and
equipment |
|
(405 |
) |
|
|
(4,227 |
) |
|
|
(1,704 |
) |
|
|
(9,359 |
) |
| Capitalized software
development costs |
|
(2,345 |
) |
|
|
(1,011 |
) |
|
|
(7,052 |
) |
|
|
(9,789 |
) |
|
Free cash flow(1) |
|
35,755 |
|
|
|
26,680 |
|
|
|
141,099 |
|
|
|
112,003 |
|
| Cash paid for interest and
other financing costs |
|
7,537 |
|
|
|
5,428 |
|
|
|
34,323 |
|
|
|
16,047 |
|
|
Unlevered free cash flow(1) |
$ |
43,292 |
|
|
$ |
32,108 |
|
|
$ |
175,422 |
|
|
$ |
128,050 |
|
________________(1) Free cash flow and unlevered free cash flow
for the periods presented were impacted by:
| |
Three Months EndedDecember
31, |
|
Year Ended December 31, |
|
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Employee stock purchase plan
activity |
$ |
3,584 |
|
|
$ |
5,375 |
|
|
$ |
1,077 |
|
|
$ |
837 |
|
| Acquisition-related
expenses |
|
(8,506 |
) |
|
|
(260 |
) |
|
|
(9,336 |
) |
|
|
(2,655 |
) |
| Costs related to intra-entity
asset transfer |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(838 |
) |
| Tax payment on intra-entity
asset transfer |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,697 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow and unlevered free cash flow for the year ended
December 31, 2022 were benefited by approximately $8 million
from prepayments of software subscription costs, insurance and rent
made in prior quarters.
| Non-GAAP Income from
Operations and Non-GAAP Operating Margin |
Three Months EndedDecember
31, |
|
Year Ended December 31, |
|
(dollars in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Loss from operations |
$ |
(14,346 |
) |
|
$ |
(14,089 |
) |
|
$ |
(52,160 |
) |
|
$ |
(67,815 |
) |
| Stock-based compensation |
|
36,515 |
|
|
|
30,679 |
|
|
|
145,327 |
|
|
|
120,633 |
|
| Acquisition-related
expenses |
|
4,744 |
|
|
|
266 |
|
|
|
9,472 |
|
|
|
2,642 |
|
| Restructuring |
|
4,499 |
|
|
|
— |
|
|
|
4,499 |
|
|
|
— |
|
| Costs related to intra-entity
asset transfer(1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
838 |
|
| Amortization of acquired
intangible assets |
|
4,651 |
|
|
|
3,080 |
|
|
|
13,859 |
|
|
|
11,372 |
|
|
Non-GAAP income from operations |
$ |
36,063 |
|
|
$ |
19,936 |
|
|
$ |
120,997 |
|
|
$ |
67,670 |
|
| Operating margin |
(7 |
)% |
|
(8 |
)% |
|
(7 |
)% |
|
(10 |
)% |
| Non-GAAP operating margin |
|
17 |
% |
|
|
11 |
% |
|
|
15 |
% |
|
|
10 |
% |
________________(1) The costs related to the intra-entity asset
transfer resulted from our internal restructuring of Cymptom.
| Non-GAAP Net Income and
Non-GAAP Earnings Per Share |
Three Months EndedDecember
31, |
|
Year Ended December 31, |
|
(in thousands, except per share data) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Net loss |
$ |
(21,648 |
) |
|
$ |
(21,487 |
) |
|
$ |
(78,284 |
) |
|
$ |
(92,222 |
) |
| Stock-based compensation |
|
36,515 |
|
|
|
30,679 |
|
|
|
145,327 |
|
|
|
120,633 |
|
| Tax impact of stock-based
compensation(1) |
|
971 |
|
|
|
531 |
|
|
|
2,017 |
|
|
|
2,103 |
|
| Acquisition-related
expenses(2) |
|
4,744 |
|
|
|
266 |
|
|
|
9,472 |
|
|
|
2,642 |
|
| Restructuring(2) |
|
4,499 |
|
|
|
— |
|
|
|
4,499 |
|
|
|
— |
|
| Costs related to intra-entity
asset transfer(3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
838 |
|
| Amortization of acquired
intangible assets(4) |
|
4,651 |
|
|
|
3,080 |
|
|
|
13,859 |
|
|
|
11,372 |
|
| Tax impact of
acquisitions(5) |
|
426 |
|
|
|
604 |
|
|
|
265 |
|
|
|
(3,703 |
) |
| Tax impact of intra-entity
asset transfer(6) |
|
— |
|
|
|
531 |
|
|
|
— |
|
|
|
2,652 |
|
|
Non-GAAP net income |
$ |
30,158 |
|
|
$ |
14,204 |
|
|
$ |
97,155 |
|
|
$ |
44,315 |
|
| |
|
|
|
|
|
|
|
|
Net loss per share, diluted |
$ |
(0.19 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.68 |
) |
|
$ |
(0.83 |
) |
| Stock-based compensation |
|
0.31 |
|
|
|
0.27 |
|
|
|
1.25 |
|
|
|
1.08 |
|
| Tax impact of stock-based
compensation(1) |
|
0.01 |
|
|
|
— |
|
|
|
0.02 |
|
|
|
0.02 |
|
| Acquisition-related
expenses(2) |
|
0.04 |
|
|
|
— |
|
|
|
0.08 |
|
|
|
0.02 |
|
| Restructuring(2) |
|
0.04 |
|
|
|
— |
|
|
|
0.04 |
|
|
|
— |
|
| Costs related to intra-entity
asset transfer(3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
| Amortization of acquired
intangible assets(4) |
|
0.04 |
|
|
|
0.03 |
|
|
|
0.11 |
|
|
|
0.10 |
|
| Tax impact of
acquisitions(5) |
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
(0.03 |
) |
| Tax impact of intra-entity
asset transfer(6) |
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.03 |
|
| Adjustment to diluted earnings
per share(7) |
|
— |
|
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
Non-GAAP earnings per share, diluted |
$ |
0.25 |
|
|
$ |
0.12 |
|
|
$ |
0.80 |
|
|
$ |
0.38 |
|
| |
|
|
|
|
|
|
|
|
Weighted-average shares used to compute GAAP net loss per share,
diluted |
|
116,717 |
|
|
|
112,742 |
|
|
|
115,408 |
|
|
|
111,321 |
|
| |
|
|
|
|
|
|
|
|
Weighted-average shares used to compute non-GAAP earnings per
share, diluted |
|
122,023 |
|
|
|
117,546 |
|
|
|
120,714 |
|
|
|
117,534 |
|
________________(1) The tax impact of stock-based compensation
is based on the tax treatment for the applicable tax
jurisdictions.(2) The tax impact of acquisition-related expenses
and restructuring charges are not material.(3) The costs related to
the intra-entity asset transfer resulted from our internal
restructuring of Cymptom.(4) The tax impact of the amortization of
acquired intangible assets is included in the tax impact of
acquisitions.(5) The tax impact of acquisitions for all periods
presented includes the deferred tax benefits of the Alsid
acquisition. In the three months and year ended December 31, 2023,
tax impact from acquisitions includes a reversal of deferred tax
expense related to indefinite-lived intangible assets.
Additionally, the tax impact of acquisitions for the year ended
December 31, 2022 includes a reversal of the $2.5 million
income tax benefit recognized for GAAP purposes related to the
partial release of our valuation allowance associated with the Bit
Discovery acquisition.(6) The tax impact of the intra-entity
transfer is related to current tax expense based on the applicable
Israeli tax rates resulting from our internal restructuring of
Cymptom in the year ended December 31, 2022.(7) An adjustment to
reconcile GAAP net loss per share, which excludes potentially
dilutive shares, to non-GAAP earnings per share, which includes
potentially dilutive shares.
| Non-GAAP Gross Profit
and Non-GAAP Gross Margin |
Three Months EndedDecember
31, |
|
Year Ended December 31, |
|
(dollars in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Gross profit |
$ |
164,503 |
|
|
$ |
139,391 |
|
|
$ |
615,133 |
|
|
$ |
528,402 |
|
| Stock-based compensation |
|
2,705 |
|
|
|
2,401 |
|
|
|
11,247 |
|
|
|
8,369 |
|
| Amortization of acquired
intangible assets |
|
4,651 |
|
|
|
3,080 |
|
|
|
13,859 |
|
|
|
11,372 |
|
|
Non-GAAP gross profit |
$ |
171,859 |
|
|
$ |
144,872 |
|
|
$ |
640,239 |
|
|
$ |
548,143 |
|
| Gross margin |
|
77 |
% |
|
|
75 |
% |
|
|
77 |
% |
|
|
77 |
% |
| Non-GAAP gross margin |
|
81 |
% |
|
|
78 |
% |
|
|
80 |
% |
|
|
80 |
% |
| Non-GAAP Sales and
Marketing Expense |
Three Months EndedDecember
31, |
|
Year Ended December 31, |
|
(dollars in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Sales and marketing
expense |
$ |
103,700 |
|
|
$ |
91,311 |
|
|
$ |
393,450 |
|
|
$ |
349,430 |
|
| Less: Stock-based
compensation |
|
14,700 |
|
|
|
12,963 |
|
|
|
61,322 |
|
|
|
49,383 |
|
| Less: Acquisition-related
expenses |
|
512 |
|
|
|
— |
|
|
|
512 |
|
|
|
15 |
|
|
Non-GAAP sales and marketing expense |
$ |
88,488 |
|
|
$ |
78,348 |
|
|
$ |
331,616 |
|
|
$ |
300,032 |
|
|
Non-GAAP sales and marketing expense % of revenue |
|
41 |
% |
|
|
42 |
% |
|
|
42 |
% |
|
|
44 |
% |
| Non-GAAP Research and
Development Expense |
Three Months EndedDecember
31, |
|
Year Ended December 31, |
|
(dollars in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Research and development
expense |
$ |
40,083 |
|
|
$ |
36,911 |
|
|
$ |
153,163 |
|
|
$ |
143,560 |
|
| Less: Stock-based
compensation |
|
9,354 |
|
|
|
8,205 |
|
|
|
37,225 |
|
|
|
31,499 |
|
| Less: Acquisition-related
expenses |
|
2,880 |
|
|
|
— |
|
|
|
2,880 |
|
|
|
46 |
|
|
Non-GAAP research and development expense |
$ |
27,849 |
|
|
$ |
28,706 |
|
|
$ |
113,058 |
|
|
$ |
112,015 |
|
|
Non-GAAP research and development expense % of revenue |
|
13 |
% |
|
|
16 |
% |
|
|
14 |
% |
|
|
16 |
% |
| Non-GAAP General and
Administrative Expense |
Three Months EndedDecember
31, |
|
Year Ended December 31, |
|
(dollars in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| General and administrative
expense |
$ |
30,567 |
|
|
$ |
25,258 |
|
|
$ |
116,181 |
|
|
$ |
103,227 |
|
| Less: Stock-based
compensation |
|
9,756 |
|
|
|
7,110 |
|
|
|
35,533 |
|
|
|
31,382 |
|
| Less: Acquisition-related
expenses |
|
1,352 |
|
|
|
266 |
|
|
|
6,080 |
|
|
|
2,581 |
|
| Less: Costs related to
intra-entity asset transfer |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
838 |
|
|
Non-GAAP general and administrative expense |
$ |
19,459 |
|
|
$ |
17,882 |
|
|
$ |
74,568 |
|
|
$ |
68,426 |
|
|
Non-GAAP general and administrative expense % of revenue |
|
9 |
% |
|
|
10 |
% |
|
|
9 |
% |
|
|
10 |
% |
The following adjustments to reconcile forecasted non-GAAP
income from operations, non-GAAP net income, non-GAAP earnings per
share, free cash flow and unlevered free cash flow are subject to a
number of uncertainties and assumptions, each of which are
inherently difficult to forecast. As a result, actual adjustments
and GAAP results may differ materially.
| Forecasted Non-GAAP
Income from Operations |
Three Months EndedMarch 31,
2024 |
|
Year Ended December 31, 2024 |
| (in
millions) |
Low |
|
High |
|
Low |
|
High |
| Forecasted
loss from operations |
$ |
(27.7 |
) |
|
$ |
(23.7 |
) |
|
$ |
(41.7 |
) |
|
$ |
(31.7 |
) |
| Forecasted stock-based compensation |
|
40.0 |
|
|
|
40.0 |
|
|
|
165.0 |
|
|
|
165.0 |
|
| Forecasted restructuring expense |
|
10.0 |
|
|
|
8.0 |
|
|
|
10.0 |
|
|
|
8.0 |
|
| Forecasted amortization of acquired intangible assets |
|
4.7 |
|
|
|
4.7 |
|
|
|
18.7 |
|
|
|
18.7 |
|
|
Forecasted non-GAAP income from operations |
$ |
27.0 |
|
|
$ |
29.0 |
|
|
$ |
152.0 |
|
|
$ |
160.0 |
|
| Forecasted Non-GAAP Net
Income and Non-GAAP Earnings Per Share |
Three Months EndedMarch 31,
2024 |
|
Year Ended December 31, 2024 |
| (in millions, except
per share data) |
Low |
|
High |
|
Low |
|
High |
|
Forecasted net loss(1) |
$ |
(34.6 |
) |
|
$ |
(30.6 |
) |
|
$ |
(68.9 |
) |
|
$ |
(58.9 |
) |
| Forecasted stock-based
compensation |
|
40.0 |
|
|
|
40.0 |
|
|
|
165.0 |
|
|
|
165.0 |
|
| Forecasted tax impact of
stock-based compensation |
|
(0.4 |
) |
|
|
(0.4 |
) |
|
|
3.2 |
|
|
|
3.2 |
|
| Forecasted tax impact of
acquisitions |
|
0.3 |
|
|
|
0.3 |
|
|
|
1.0 |
|
|
|
1.0 |
|
| Forecasted restructuring
expense |
|
10.0 |
|
|
|
8.0 |
|
|
|
10.0 |
|
|
|
8.0 |
|
| Forecasted amortization of
acquired intangible assets |
|
4.7 |
|
|
|
4.7 |
|
|
|
18.7 |
|
|
|
18.7 |
|
|
Forecasted non-GAAP net income |
$ |
20.0 |
|
|
$ |
22.0 |
|
|
$ |
129.0 |
|
|
$ |
137.0 |
|
| |
|
|
|
|
|
|
|
| Forecasted net loss per share,
diluted(1) |
$ |
(0.29 |
) |
|
$ |
(0.26 |
) |
|
$ |
(0.58 |
) |
|
$ |
(0.49 |
) |
| Forecasted stock-based
compensation |
|
0.34 |
|
|
|
0.34 |
|
|
|
1.39 |
|
|
|
1.39 |
|
| Forecasted tax impact of
stock-based compensation |
|
— |
|
|
|
— |
|
|
|
0.03 |
|
|
|
0.03 |
|
| Forecasted tax impact of
acquisitions |
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.01 |
|
| Forecasted restructuring
expense |
|
0.09 |
|
|
|
0.07 |
|
|
|
0.08 |
|
|
|
0.07 |
|
| Forecasted amortization of
acquired intangible assets |
|
0.04 |
|
|
|
0.04 |
|
|
|
0.16 |
|
|
|
0.16 |
|
| Adjustment to diluted earnings
per share(2) |
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
(0.06 |
) |
|
|
(0.07 |
) |
|
Forecasted non-GAAP earnings per share, diluted |
$ |
0.16 |
|
|
$ |
0.18 |
|
|
$ |
1.03 |
|
|
$ |
1.10 |
|
| |
|
|
|
|
|
|
|
| Forecasted weighted-average
shares used to compute GAAP net loss per share, diluted |
|
117.5 |
|
|
|
117.5 |
|
|
|
119.0 |
|
|
|
119.0 |
|
| Forecasted weighted-average
shares used to compute non-GAAP earnings per share, diluted |
|
123.0 |
|
|
|
123.0 |
|
|
|
125.0 |
|
|
|
125.0 |
|
________________(1) The forecasted GAAP net loss assumes income
tax expense of $3.8 million and $14.8 million in the three months
ending March 31, 2024 and year ending December 31, 2024,
respectively.(2) Adjustment to reconcile GAAP net loss per share,
which excludes potentially dilutive shares, to non-GAAP earnings
per share, which includes potentially dilutive shares.
| Forecasted Free Cash Flow
and Unlevered Free Cash Flow |
Year Ended December 31, 2024 |
| (in
millions) |
Low |
|
High |
|
Forecasted net cash provided by operating activities |
$ |
201.0 |
|
|
$ |
211.0 |
|
| Forecasted purchases of
property and equipment |
|
(7.7 |
) |
|
|
(7.7 |
) |
| Forecasted capitalized
software development costs |
|
(4.0 |
) |
|
|
(4.0 |
) |
|
Forecasted free cash flow |
|
189.3 |
|
|
|
199.3 |
|
| Forecasted cash paid for
interest and other financing costs |
|
30.7 |
|
|
|
30.7 |
|
|
Forecasted unlevered free cash flow |
$ |
220.0 |
|
|
$ |
230.0 |
|
Grafico Azioni Tenable (NASDAQ:TENB)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Tenable (NASDAQ:TENB)
Storico
Da Nov 2023 a Nov 2024
