Shares of cyber exposure company Tenable Holdings, Inc. (TENB) rose about 3.3% during after-market trading hours, after it announced better-than-expected numbers for the first quarter of fiscal 2022, along with the acquisition of Bit Discovery.
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Robust Results
Revenue rose 29.4% year-over-year to $159.4 million, outperforming consensus by $5.9 million. Meanwhile, earnings per share (EPS) at $0.06 came in ahead of expectations by $0.01.
Chairman and CEO of Tenable, Amit Yoran, commented, “As our customers move toward more complex workloads in the cloud, they demand a cloud security program that effectively identifies, prioritizes, and mitigates cyber exposure. We see a significant market opportunity ahead as we deepen our cyber exposure platform investments around identity, cloud, attack surface management, attack path analysis, and other compelling analytics.”
Importantly, Tenable added 459 new enterprise platform customers during the period, while also increasing calculated current billings by 29% to $159.4 million. Looking ahead, for fiscal 2022, the company sees revenue landing in the range of $673 million to $679 million.
Acquisition of Bit Discovery
Tenable has agreed to acquire external attack surface management (EASM) solutions provider Bit Discovery for a consideration of $44.5 million. The transaction is anticipated to close in Q2 2022.
The combination will give Tenable’s customers a complete view of the modern attack surface, enabling them to spot and eliminate areas of security risk. Notably, in the latter part of 2022, Bit Discovery is anticipated to add $2 million to $3 million to Tenable’s calculated current billings.
Analyst Take
Needham analyst Mike Cikos has reiterated a Buy rating on the stock alongside a price target of $66.
Overall, the Street has a Strong Buy Consensus rating on Tenable based on 11 unanimous Buys. The average Tenable price target of $68.64 implies a potential upside of 23.6% for the stock. That’s after a nearly 28.8% gain in share prices over the past 12 months.
Closing Note
On top of the robust quarterly showing, the Bit Discovery acquisition adds new capabilities to Tenable’s offerings. Furthermore, the TipRanks database highlights that both retail investors and hedge funds are viewing the stock optimistically.
Hedge funds have increased holdings in tenable by 117,600 shares in the last quarter. Investor sentiment is very positive on the stock, with the number of portfolios holding Tenable going up by 5.7% in the last 30 days.
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