Tenable (TENB) Q4 2024 earnings summary

Executive summary

• Delivered strong Q4 2024 results, exceeding all guided metrics, with 11% revenue growth and robust demand for exposure management and cloud security.

• Announced the pending acquisition of Vulcan Cyber to enhance data aggregation, remediation, and AI-driven exposure management; deal expected to close shortly and not included in FY2025 guidance.

• Added 485 new enterprise platform customers and 135 net new six-figure customers in Q4, with strong customer momentum and large deal activity.

• Leadership transition underway with co-CEOs and a board-led executive search following the CEO's passing.

• Recognized as a leader in vulnerability management by Forrester, IDC, and Frost & Sullivan, serving ~44,000 customers including 65% of Fortune 500.

Financial highlights

• Q4 2024 revenue reached $235.7M, up 11% year-over-year; full-year revenue was $900.0M, up 11%.

• Q4 non-GAAP gross margin was 82%; full-year non-GAAP gross margin was 81%.

• Q4 non-GAAP operating margin was 25%; full-year non-GAAP operating margin was 20%.

• Q4 non-GAAP diluted EPS was $0.41, $0.07 above guidance; full-year non-GAAP diluted EPS was $1.29.

• Q4 unlevered free cash flow was $86M; full-year unlevered free cash flow was $238M, both exceeding expectations.

Outlook and guidance

• Q1 2025 revenue expected between $232M–$234M; non-GAAP income from operations $42M–$44M; non-GAAP EPS $0.28–$0.30.

• FY2025 revenue guidance is $971M–$981M; calculated billings $1.04B–$1.055B; non-GAAP operating income $213M–$223M; non-GAAP EPS $1.52–$1.60.

• FY2025 unlevered free cash flow expected at $285M–$295M, with long-term target of 35%+ margins unchanged.

• Guidance is incrementally more cautious for U.S. Federal due to administration transition and related uncertainties.

• Guidance excludes impact of pending Vulcan Cyber acquisition.