Tenable (TENB) Q4 2023 earnings summary

Executive summary

• Q4 revenue rose 16% YoY to $213.3M; FY revenue increased 17% to $798.7M, with management citing better-than-expected top- and bottom-line results.

• Tenable One momentum was driven by cloud and identity adoption, with continued OT traction; management said it is optimizing operations and leveraging prior investments.

Financial highlights

• Q4 calculated current billings were $271.6M, up 14% YoY; FY billings were $873.3M, up 12%.

• Q4 GAAP operating loss was $14.3M vs. $14.1M; adjusted non-GAAP operating income was $36.1M vs. $19.9M.

• Q4 GAAP net loss was $21.6M, or $0.19/share; adjusted non-GAAP net income was $30.2M, or $0.25 diluted EPS, vs. $14.2M and $0.12.

• FY GAAP operating loss narrowed to $52.2M from $67.8M; adjusted non-GAAP operating income rose to $121.0M from $67.7M.

• FY GAAP net loss was $78.3M, or $0.68/share; adjusted non-GAAP net income was $97.2M, or $0.80 diluted EPS, vs. $44.3M and $0.38.

Outlook and guidance

• Q1 2024 revenue guidance is $212M–$214M; adjusted non-GAAP operating income $27M–$29M, net income $20M–$22M and diluted EPS $0.16–$0.18.

• FY 2024 guidance: calculated current billings $982M–$992M; revenue $895M–$905M; adjusted non-GAAP operating income $152M–$160M.

• FY 2024 adjusted non-GAAP net income is expected at $129M–$137M, diluted EPS at $1.03–$1.10, and unlevered FCF at $220M–$230M.