Added 341 new enterprise platform customers and 50 net new six-figure customersRevenue of $107.2 million, up 26% year-over-yearGAAP loss from operations of $10.6 million; Non-GAAP income from operations of $5.7 millionNet cash provided by operating activities of $17.0 million; Free cash flow of $6.6 millionCOLUMBIA, Md., July 28, 2020 (GLOBE NEWSWIRE) — Tenable (Nasdaq: TENB), the Cyber Exposure company, today announced financial results for the quarter ended June 30, 2020.“Tenable delivered another successful quarter, including our first quarter of non-GAAP operating income as a public company, which was sooner than anticipated,” said Amit Yoran, Chairman and CEO of Tenable. “Our dedication to a best-of-breed strategy for vulnerability management continues to drive results. In a time when organizations’ attack surfaces are expanding across more distributed workforces, accelerating cloud deployments and evolving OT environments, customers rely on our Cyber Exposure solutions to discover, measure and reduce their cyber risk.”Second Quarter 2020 Financial HighlightsRevenue was $107.2 million, representing a 26% increase year-over-year.Calculated current billings was $111.2 million, representing a 13% increase year-over-year.GAAP loss from operations was $10.6 million, compared to a loss of $22.2 million in the second quarter of 2019.Non-GAAP income from operations was $5.7 million, compared to a loss of $10.7 million in the second quarter of 2019.GAAP net loss was $12.0 million, compared to a loss of $21.6 million in the second quarter of 2019.GAAP net loss per share was $0.12, compared to a loss per share of $0.23 in the second quarter of 2019.Non-GAAP net income was $4.7 million, compared to a loss of $10.0 million in the second quarter of 2019.Non-GAAP diluted earnings per share was $0.04, compared to a loss per share of $0.10 in the second quarter of 2019.Cash and cash equivalents and short-term investments were $242.1 million at June 30, 2020, compared to $212.3 million at December 31, 2019.Net cash provided by operating activities was $17.0 million, compared to $2.1 million of net cash used in operating activities in the second quarter of 2019.Free cash flow was $6.6 million, compared to $(5.2) million in the second quarter of 2019.Recent Business HighlightsAdded 341 new enterprise platform customers and 50 net new six-figure customers.Ranked number one in global market share and revenue for 2018 and 2019 in IDC’s Worldwide Device Vulnerability Management Market Shares, 2019 report.(1)Rated highest among “Customers’ Choice” vendors in product capabilities in the April 2020 Gartner Peer Insights “Voice of the Customer”: Vulnerability Assessment report.(2)Entered into a $45 million credit facility with Silicon Valley Bank in connection with the expiration of our existing facility.Financial OutlookFor the third quarter of 2020, we currently expect:Revenue in the range of $108.0 million to $110.0 million.Non-GAAP income from operations in the range of $3.0 million to $4.0 million.Non-GAAP net income in the range of $2.0 million to $3.0 million.Non-GAAP diluted earnings per share in the range of $0.02 to $0.03.111.0 million diluted weighted average shares outstanding.For the year ending December 31, 2020, we currently expect:Revenue in the range of $428.0 million to $433.0 million.Non-GAAP income from operations in the range of $4.0 million to $7.0 million.Non-GAAP net income in the range of $0.0 million to $3.0 million.Non-GAAP diluted earnings per share in the range of $0.00 to $0.03.110.0 million diluted weighted average shares outstanding.Conference Call InformationTenable will host a conference call at 4:30 p.m. Eastern Time to discuss its financial results. The conference call can be accessed at 877-407-9716 (U.S.) and 201-493-6779 (international). A live webcast of the event will be available on the Tenable Investor Relations website at https://investors.tenable.com. A replay of the webcast will be available until August 11, 2020.About TenableTenable® is the Cyber Exposure company. Over 30,000 organizations around the globe rely on Tenable to understand and reduce cyber risk. As the creator of Nessus®, Tenable extended its expertise in vulnerabilities to deliver the world’s first platform to see and secure any digital asset on any computing platform. Tenable customers include more than 50 percent of the Fortune 500, more than 30 percent of the Global 2000, and large government agencies. Learn more at tenable.com.Contact InformationInvestor Relations
Andrea DiMarco
investors@tenable.comMedia Relations
Cayla Baker
tenablepr@tenable.comForward-Looking StatementsThis press release includes forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, including statements regarding our future results of operations and financial position, business strategy and plans and objectives for future operations, are forward-looking statements and represent our views as of the date of this press release. The words “anticipate,” believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of assumptions and risks and uncertainties, many of which involve factors or circumstances that are beyond our control that could affect our financial results. These risks and uncertainties are detailed in the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2019, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and other filings that we make from time to time with the SEC, which are available on the SEC’s website at sec.gov. Such risks and uncertainties may be amplified by the COVID-19 pandemic and its potential impact on our business and the global economy. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in any forward-looking statements. Except as required by law, we are under no obligation to update these forward-looking statements subsequent to the date of this press release, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.Non-GAAP Financial Measures and Other Key MetricsTo supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important metrics used by management for financial and operational decision-making. We present these non-GAAP financial measures to assist investors in seeing our financial performance using a management view and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.Calculated Current Billings: We define calculated current billings, a non-GAAP financial measure, as total revenue recognized in a period plus the change in current deferred revenue in the corresponding period. We believe that calculated current billings is a key metric to measure our periodic performance. Given that most of our customers pay in advance (including multi-year contracts), but we generally recognize the related revenue ratably over time, we use calculated current billings to measure and monitor our ability to provide our business with the working capital generated by upfront payments from our customers. We believe that calculated current billings, which excludes deferred revenue for periods beyond twelve months in a customer’s contractual term, more closely correlates with annual contract value and that the variability in total billings, depending on the timing of large multi-year contracts and the preference for annual billing versus multi-year upfront billing, may distort growth in one period over another.Free Cash Flow: We define free cash flow, a non-GAAP financial measure, as net cash (used in) provided by operating activities less purchases of property and equipment. We believe free cash flow is an important liquidity measure of the cash (if any) that is available, after purchases of property and equipment, for investment in our business and to make acquisitions. We believe that free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash.Non-GAAP Income (Loss) from Operations and Non-GAAP Operating Margin: We define these non-GAAP financial measures as their respective GAAP measures, excluding the effect of stock-based compensation, acquisition-related expenses and amortization of acquired intangible assets. Acquisition-related expenses include transaction expenses and costs related to the transfer of acquired intellectual property.Non-GAAP Net Income (Loss) and Non-GAAP Earnings (Loss) Per Share: We define non-GAAP net income (loss) as GAAP net loss, excluding the effect of stock-based compensation, acquisition-related expenses and amortization of acquired intangible assets, including the applicable tax impact. We use non-GAAP net income (loss) to calculate non-GAAP earnings (loss) per share.Non-GAAP Gross Profit and Non-GAAP Gross Margin: We define non-GAAP gross profit as GAAP gross profit, excluding the effect of stock-based compensation and amortization of acquired intangible assets. Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of revenue.Non-GAAP Sales and Marketing Expense, Non-GAAP Research and Development Expense and Non-GAAP General and Administrative Expense: We define these non-GAAP measures as their respective GAAP measures, excluding stock-based compensation and acquisition-related expenses.1) Source: IDC, Worldwide Device Vulnerability Management Market Shares, 2019: Finding the Transitional Elements Between Device Assessment Scanning and Risk-Based Remediation (doc # US46284720, May 2020) report.2) Based on 156 reviews as of 2/29/2020. Gartner Peer Insights reviews constitute the subjective opinions of individual end users based on their own experiences and do not represent the views of Gartner or its affiliates. Gartner Peer Insights Customers’ Choice constitute the subjective opinions of individual end-user reviews, ratings, and data applied against a documented methodology; they neither represent the views of, nor constitute an endorsement by, Gartner or its affiliates. https://www.gartner.com/reviews/market/vulnerability-assessment/vendors
TENABLE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)_______________
(1) Includes stock-based compensation as follows:
TENABLE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
TENABLE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
TENABLE HOLDINGS, INC.
REVENUE COMPONENTS AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(unaudited)_______________
(1) Recurring revenue, which includes revenue from subscription arrangements for software and cloud-based solutions and maintenance associated with perpetual licenses, represented 93% of revenue for the three and six months ended June 30, 2020 and 91% of revenue for the three and six months ended June 30, 2019.
________________
(1) Free cash flow included benefits of $3.3 million and $3.9 million and reductions of $0.4 million and $1.0 million related to employee stock purchase plan activity in the three months ended June 30, 2020 and 2019 and the six months ended June 30, 2020 and 2019, respectively. The three and six months ended June 30, 2020 included $8.6 million of proceeds from lease incentives as well as $9.7 million and $9.8 million, respectively, in capital expenditures for our new headquarters. The six months ended June 30, 2020 also included $0.7 million of acquisition-related payments for Indegy.
________________
(1) The tax impact of stock-based compensation is based on the tax treatment for the applicable tax jurisdictions.
(2) The tax impact of amortization of acquired intangible assets is not material.
(3) Adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.
(4) In periods in which there is a non-GAAP net loss, basic and diluted weighted average shares outstanding are the same, as potentially dilutive shares would be antidilutive.
________________
(1) Adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.
Bay Street News