Tenable’s first quarter results were met with a significant negative market reaction, despite revenue and non-GAAP profit both exceeding Wall Street expectations. Management attributed the quarter’s performance to strong demand for the Tenable One exposure management platform, which drove a record number of large enterprise deals, especially in cloud and multi-cloud environments. Co-CEO Steve Vintz emphasized, “This was our best quarter ever for seven-figure wins, and Tenable One was certainly the catalyst for that success.” However, the company acknowledged persistent headwinds in the public sector, noting that uncertainty around U.S. federal budgets and leadership changes constrained growth in this segment.
Is now the time to buy TENB? Find out in our full research report (it’s free).
Tenable (TENB) Q1 CY2025 Highlights:
- Revenue: $239.1 million vs analyst estimates of $233.6 million (10.7% year-on-year growth, 2.4% beat)
- Adjusted EPS: $0.36 vs analyst estimates of $0.28 (27.5% beat)
- Adjusted Operating Income: $48.68 million vs analyst estimates of $41.81 million (20.4% margin, 16.4% beat)
- The company reconfirmed its revenue guidance for the full year of $975 million at the midpoint
- Operating Margin: -7.4%, down from -4.1% in the same quarter last year
- Market Capitalization: $4.09 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Tenable’s Q1 Earnings Call
- Brian Essex (JPMorgan): Asked why management adopted a more cautious outlook. Co-CEO Steve Vintz explained that increased uncertainty in the public sector, including personnel changes and policy disruptions, made forecasting more challenging.
- Saket Kalia (Barclays): Inquired about competitive dynamics in vulnerability management. Co-CEO Mark Thurmond reported historically high win rates against legacy vendors and saw no major shift from newer entrants.
- Andrew Nowinski (Wells Fargo): Questioned if Google’s acquisition of Wiz impacts Tenable’s cloud business. Vintz and Thurmond responded that customer uncertainty has opened new opportunities for Tenable, particularly among multi-cloud clients.
- Matt Calitri (Needham & Co.): Sought clarity on the impact of public versus private sector in guidance. Vintz estimated that about two-thirds of the guidance revision stems from U.S. public sector, with the remainder from enterprise clients.
- Patrick O'Neill (Wolfe Research): Asked about the Vulcan acquisition’s contribution and customer adoption. Vintz confirmed Vulcan’s capabilities are being integrated, with revenue impact expected to accelerate in the second half of the year.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) progress in expanding Tenable One’s third-party integrations and AI-powered features, (2) the pace of enterprise and public sector adoption—especially as federal budget clarity emerges, and (3) execution on cloud and OT security initiatives. The integration of Vulcan’s remediation tools and visibility into deal closure timelines will also be key markers for assessing Tenable’s trajectory.
Tenable currently trades at $33.53, in line with $33.68 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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