Tenable Gains 4.6% on Better-Than-Expected Q4 Results

Tenable Holdings, Inc. (TENB) has reported stronger-than-expected Q4 results on the back of impressive customer acquisition during the quarter. Shares of the cybersecurity company gained 4.6% in Tuesday’s extended trading session to close at $54.32.

Adjusted earnings came in at $0.05 per share, down 61.5% from the same quarter last year. However, the figure surpassed the Street’s estimate of $0.02 per share. Revenues rose 26% to $149 million and came above analysts’ expectations of $144.5 million. Growth in revenues can primarily be attributed to a 29.5% rise in subscription revenues.

Tenable reported calculated current billings of $194 million, up 29% year-over-year. Also, the company added 562 new enterprise platform customers and 100 net new six-figure customers during the quarter.

Outlook

The company anticipates first-quarter 2022 adjusted earnings in the range of $0.04 to $0.05 per share, while revenues are expected to be in the range of $152 million to $154 million.

For 2022, revenue is anticipated to be in the range of $662 million to $670 million, while adjusted earnings are expected to be between $0.15 and $0.19. Calculated current billings are likely to fall in the range of $750 million to $760 million.

Cymptom Acquisition

Alongside earnings, Tenable has announced plans to acquire Cymptom, a leader in attack path management. Though the terms of the deal remained disclosed, the deal is expected to close in the first quarter of 2022.

With this deal, the companies aim to deliver an always-on view of every attack path by combining Cymptom’s agentless platform with Tenable’s threat and vulnerability data.

The Chief product officer of Tenable, Nico Popp, said, “Risk prioritization has become a cornerstone of modern cybersecurity. By correlating software vulnerabilities and misconfigurations with network and access data, Cymptom can immediately identify exploitable attack and breach pathways.”

Stock Rating

Just before the earnings release, Needham analyst Mike Cikos maintained a Buy rating on Tenable with a price target of $66 (27.1% upside potential from current levels).

Cikos noted, “We believe Tenable can accelerate growth in CY22 based on a combination of traction with new products and investments in the go-to-market.”

“We believe Tenable.ad continues to see strong product adoption as a result of the pervasiveness of Active Directory. Tenable.cs is built on the recent acquisition of Accurics and expected to launch in February,” he added

Overall, the Street has a bullish outlook on the stock with a Strong Buy consensus rating based on 11 unanimous Buys. The Tenable stock price prediction of $66.55 implies upside potential of about 28.2% from current levels.

Blogger Opinion

TipRanks data shows that financial blogger opinions are 100% Bullish on TENB, compared to the sector average of 69%.

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