Cybersecurity exposure management company Tenable (NASDAQ: TENB) reported revenue ahead of Wall Streets expectations in Q3 CY2025, with sales up 11.2% year on year to $252.4 million. The company expects next quarter’s revenue to be around $251.1 million, close to analysts’ estimates. Its non-GAAP profit of $0.42 per share was 13.4% above analysts’ consensus estimates.

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StockStory’s Take

Tenable’s third quarter was marked by strong engagement with its exposure management platform, Tenable One, and a positive market reaction to the results. Management credited the quarter’s performance to expanding adoption of Tenable One, which accounted for a significant portion of new business, as well as strength in new enterprise customer additions. CEO Stephen Vintz highlighted that 437 new enterprise platform customers were added, and approximately 40% of new business came from exposure solutions. Management also pointed to sustained investment in research and development, particularly around AI-driven security, as key to maintaining product differentiation.

Looking ahead, Tenable’s forward guidance is shaped by expectations of continued demand for exposure management solutions and increased focus on proactive cybersecurity strategies. Management believes that investments in AI capabilities, expanded integrations with third-party tools, and further penetration into existing customer accounts will support growth. CFO Matthew Brown noted that the company anticipates maintaining steady profitability while continuing to invest in innovation, stating, “We expect to continue to both grow top line and add incremental margin.”

Key Insights from Management’s Remarks

Management attributed third quarter outperformance to growing adoption of the Tenable One platform, increased enterprise customer wins, and sustained product innovation, especially in AI and integrations.

• Tenable One platform traction: The exposure management platform remained a core growth driver, representing about 40% of new business. Management emphasized that unifying visibility and action across asset types—spanning IT, cloud, and OT—has increased deal sizes and customer retention.

• Enterprise customer growth: Tenable added 437 new enterprise platform customers, with a notable portion consolidating from multiple point solutions onto Tenable One. This consolidation is driving longer-term contracts and reducing customers’ security management complexity.

• AI and threat landscape evolution: Management highlighted how AI is reshaping cyber threats, making attacks more automated and sophisticated. Tenable responded with the launch of AI Exposure, a solution that helps organizations discover and mitigate risks tied to generative AI usage.

• Integration ecosystem expansion: Surpassing 300 validated integrations, Tenable One’s open ecosystem has become a differentiator, allowing customers to unify data from various third-party security tools and improve response coordination.

• Operational technology (OT) focus: The convergence of IT and OT security is accelerating, with customers seeking unified solutions. Tenable’s success in closing deals with critical infrastructure providers demonstrates its progress in this segment.

Drivers of Future Performance

Management expects continued growth to be supported by platform innovation, expanded integrations, and further AI enhancements, along with ongoing efforts to increase operating leverage.

• Expanded platform adoption: Management expects further upsell opportunities within Tenable’s substantial installed base, particularly as more customers transition to Tenable One. The company is prioritizing expansion in existing accounts, leveraging its integration capabilities and new AI-driven features to deepen engagement.

• AI-driven product development: Tenable is investing heavily in AI to anticipate cyber threats rather than merely respond to them. Management believes this shift from reactive to preemptive security solutions will drive greater customer demand and position Tenable as a leader as the threat landscape evolves.

• Margin expansion and operational discipline: The company aims to balance top-line growth with incremental operating margin gains. While research and development spending will remain a focus, management anticipates extracting additional leverage from sales, marketing, and administrative functions, supporting improved profitability over time.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be monitoring (1) the pace of Tenable One adoption and upsell activity across the customer base, (2) the impact of new AI-powered features and third-party integrations on deal sizes and customer retention, and (3) progress in expanding into critical infrastructure and operational technology markets. Continued investment in R&D and execution on platform enhancements will also be important signposts for sustained growth.

Tenable currently trades at $29.89, up from $28.63 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).

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