Tenable proves that cybersecurity defense is the best

Cyber ​​security company Tenable Holdings Inc. NASDAQ: TENB shares rose to a 52-week high on the back of strong earnings performance in the fourth quarter of 2023. The computer and technology company specializes in managing cyber exposure. It helps businesses reduce cyber risks with its Tenable One exposure management platform that includes vulnerability management, container and cloud security solutions. The cybersecurity leader faces stiff competition from CyberArk Software Ltd. NASDAQ: CIBR AND Qualys Inc. NASDAQ:QLYS.

Tenable’s services allow organizations to identify potential vulnerabilities even outside the conventional network perimeter. It provides Predictive Storage, which uses artificial intelligence (AI) to visualize potential attack paths within the network and prioritize the most critical issues. Exposure AI solutions use generative artificial intelligence to summarize findings and recommend actions to mitigate threats.

Tenable’s cyber exposure solutions

While the term may be unfamiliar, the services are self-explanatory. Tenable offers a suite of services to help organizations manage vulnerabilities. The flagship product Nessus is a real-time solution that uses sophisticated machine learning algorithms to perform active scans to identify vulnerabilities in a company’s cybersecurity infrastructure, IT systems, devices and networks. Tenable provides solutions to protect cloud environments, including identity security, workload protection, compliance management, and cloud resource visibility. Check the heat map of the sector on MarketBeat.

Solid Q4 2023 performance

On February 6, 2023, Tenable reported fourth-quarter 2023 non-GAAP diluted EPS of 25 cents, beating analysts’ consensus estimates of 14 cents by 11 cents. GAAP net loss was $21.6 million. Non-GAAP revenue was $30.2 million. Revenue rose 16% year-over-year to $213.3 million, beating analysts’ estimates of $206.45 million. Fourth quarter calculated billings increased 14% year-over-year to $371.6 million, while full-year calculated billings increased 18% year-over-year to $873.3 million. Tenable acquired 597 new enterprise platform customers and 156 six-figure net new customers in the quarter. Obtain AI-powered insights on MarketBeat.

EPS guidance increased for 2024

Tenable expects first-quarter 2024 EPS of 16 cents to 18 cents versus 15 cents according to analyst estimates. Expected revenues are between $212 and $214 million compared to the $214.26 million estimated by analysts. Full-year 2024 EPS is forecast between $1.03 and $1.10 versus consensus analyst estimates of 80 cents. Revenues are expected to be between $895 million and $905 million. Unlevered cash flow is expected to be between $220 million and $230 million.

Growing operating margins and larger customers

Tenable Holdings CEO Amit Yoran said full-year operating margin increased 500 basis points year over year to 15%. The company added 156 new six-figure customers in the fourth quarter, which was also a “great quarter for seven-figure customers.” Yoran commented: “The bottom line is that we are increasingly attracting larger customers and helping our customers secure additional types of assets on their attack surface. This is a testament to the importance of exposure management, our leading products market and supplier consolidation we can deliver to our customers.”

Expanded offerings that drive new business

Yoran highlighted that 50% of the new business was driven by Tenable One, cloud solutions, identity and operational technology (OT). This is also a testament to the fact that Tenable has successfully expanded its offerings through organic investments and acquisitions in the cybersecurity space. The evolution has allowed Tenable to take customers beyond vulnerability management, including cloud, identity and OT.

Increase efficiency and agility

These individual best-in-class products are now the centerpiece of its offerings and sales initiatives. “This evolution has now put us in a position to begin optimizing our go-to-market efforts, including reducing our reliance on sales specialists, overlay teams and streamlining management layers. “ Yoran highlighted how its go-to-market strategy allowed the company to reduce its workforce by 5%.

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Symmetrical triangle daily breakout

The daily candlestick chart on TENB illustrates a symmetrical triangle breakout pattern. TENB stock fell to a low of $42.62 at 200-period daily moving average (MA) support on January 5, 2024. This triggered a daily breakout of the market structure low (MSL) through the 44 trigger $.08, forming a daily flagpole rising to a peak of $48.45 as the symmetrical triangle formed. This pattern is composed of a descending upper trendline composed of lower highs and an ascending lower trendline composed of rising lows that meet at an apical point. The breakout occurred at a strong price gap driven by earnings reports, which peaked at $53.50 on February 7, 2024. Gap filling levels formed at $48.96 and 47 $.79. The daily relative strength index (RSI) has risen above the overbought 70 band, which ensures the patient does not chase. The pullback support levels are at $47.79, $45.97, $44.08, and $42.62.

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