Tenable (TENB) Q4 2024 earnings summary

Executive summary

• Delivered strong Q4 2024 results, exceeding all guided metrics, with 11% year-over-year revenue and CCB growth, robust demand for exposure management and cloud security, and significant customer momentum.

• Operating margin reached 25% in Q4 and 20% for the full year, with unlevered free cash flow at $85.7M for Q4 and $237.8M for the year, both above expectations.

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

• Cloud security sales more than doubled year-over-year, with major wins in healthcare, public, and private sectors.

• Continued expansion in large enterprise and mid-market segments, with strong global growth and competitive displacements.

Financial highlights

• Q4 2024 revenue was $235.7M, up 11% year-over-year and $4.7M above guidance midpoint; full-year revenue was $900.0M, up 11%.

• Calculated current billings for 2024 were $969.5M, up 11% year-over-year.

• Q4 non-GAAP net income was $50.7M, up from $30.2M; full year non-GAAP net income was $158.6M, up from $97.2M.

• Q4 unlevered free cash flow was $85.7M; full-year 2024 was $237.8M, exceeding prior guidance.

• Cash and short-term investments at year-end totaled $577.2M.

Outlook and guidance

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

• Full-year 2025 revenue guidance is $971M–$981M; calculated billings $1.04B–$1.055B; non-GAAP operating income $213M–$223M; EPS $1.52–$1.60.

• Unlevered free cash flow for 2025 expected at $285M–$295M; long-term target of 35%+ free cash flow margin unchanged.

• Guidance is incrementally more cautious for U.S. Federal due to administration transition and excludes Vulcan Cyber impact.

• Vulcan Cyber expected to add 50 bps to CCB/revenue in 2025, with most impact in H2; $11M–$13M in operating expenses and $20M reduction in free cash flow.