NASDAQ$TENB

Tenable Holdings Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Tenable's Q3 2022 financial results were announced, demonstrating strong top-line performance, operating leverage, and free cash flow.

Tenable reported a revenue of $174.9 million, a 26% increase year-over-year, and calculated current billings of $207.3 million, up 24% year-over-year. The company added 712 new enterprise platform customers and 89 net new six-figure customers. Non-GAAP income from operations was $23.1 million, and unlevered free cash flow was $34.8 million.

  • Revenue reached $174.9 million, reflecting a 26% year-over-year increase.
  • Calculated current billings totaled $207.3 million, a 24% increase year-over-year.
  • The company added 712 new enterprise platform customers and 89 net new six-figure customers.
  • Unlevered free cash flow was $34.8 million, compared to $20.1 million in the third quarter of 2021.

Headline financials

Total Revenue

$175M

Previous: $139M+26.1%
EPS (adj)

$0.15

Previous: $0.07+114.3%
Calculated Current Billings

$207M

Previous: $167M+24.2%
New Enterprise Platform Customers

712

Previous: 499+42.7%
Capital Expenditures

-$13.9M

Previous: -$3.77M-269.1%
Free Cash Flow

-$32.6M

Previous: -$20M-63.1%
Net Income

-$18.7M

Previous: -$16.2M-15.3%
Operating Income

-$13M

Previous: -$11.2M-15.5%
Gross Profit

$136M

Previous: $112M+22.1%
Cash & Equivalents

$288M

Previous: $436M-33.9%
Total Assets

$1.35B

Previous: $1.16B+16.5%
Stock-Based Comp

$32.6M

Previous: $20.9M+56.1%

Revenue & EPS history

Tenable · Revenue · Quarterly

$175M

Q3 2022+26.1%vs Q3 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Tenable · $175M total across 3 segments · Q3 2022

  • Subscription Revenue
    $157M+28.3%
  • Perpetual License and Maintenance
    $12.7M-0.7%
  • Professional Services and Other
    $5.43M+44.4%

Forward guidance

For the fourth quarter of 2022, Tenable expects revenue in the range of $180.0 million to $182.0 million and non-GAAP income from operations in the range of $15.0 million to $16.0 million.

Tailwinds

  • Revenue in the range of $180.0 million to $182.0 million.
  • Non-GAAP income from operations in the range of $15.0 million to $16.0 million.
  • Non-GAAP net income in the range of $7.5 million to $8.5 million.
  • Non-GAAP diluted earnings per share in the range of $0.06 to $0.07.
  • 118.5 million diluted weighted average shares outstanding.

Headwinds

  • Assumes interest expense of $6.8 million.
  • Assumes a provision for income taxes of $2.8 million.
  • Forecasted loss from operations $(20.5) - $(19.5) million
  • Forecasted net loss $(27.8) - $(26.8) million
  • Forecasted net loss per share, diluted $(0.25) - $(0.24)

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-1.9%

Avg return

Earnings day

-2.6%

Avg return

5 days after

-1.9%

Avg return

30 days after

42%

13 / 31 earnings

Positive

+20.6%

Q3 2022

Best reaction

-21.4%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.1%-2.1%+31.5%
Q4 2025+0.2%+16.1%+6.7%
Q3 2025+0.7%-2.0%-7.4%
Q1 2025-9.2%-7.2%-4.3%
Q4 2024+1.5%-1.8%-10.1%
Q3 2024-5.2%-7.4%+0.4%
Q2 2024-9.9%-14.9%-12.4%
Q1 2024+0.5%+1.2%-6.2%
Q4 2023+6.7%+10.5%-0.6%
Q3 2023-16.1%-12.1%-3.2%
Q2 2023+11.3%+10.0%-1.3%
Q1 2023-21.1%-20.5%-17.3%
Q4 2022+6.8%+4.6%+1.8%
Q3 2022+20.6%+24.3%+17.3%
Q2 2022-21.4%-19.7%-13.6%
Q1 2022-2.1%-4.6%-14.5%
Q4 2021-1.8%-1.5%+8.5%
Q3 2021-1.2%+0.5%-3.1%
Q2 2021-0.6%-5.5%-3.5%
Q1 2021-8.1%-13.1%-2.5%
Q4 2020-8.0%-8.9%-24.9%
Q3 2020-1.9%-6.8%-4.1%
Q2 2020+16.9%+10.8%+18.4%
Q1 2020+6.0%+0.6%+20.7%
Q4 2019-2.8%-3.6%-16.7%
Q3 2019+12.5%+7.3%+17.4%
Q2 2019-17.8%-19.6%-27.7%
Q1 2019-9.6%-13.7%-20.0%
Q4 2018-9.1%-8.2%+3.4%
Q3 2018-8.2%-9.5%-11.2%
Q2 2018+6.1%+15.2%+18.2%
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017

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