Tenable (TENB) Q1 Earnings Report Preview: What To Look For

Radek Strnad /
2022/04/25 8:03 am EDT

Cybersecurity software maker Tenable (NASDAQ:TENB) will be reporting results tomorrow afternoon. Here's what investors should know.

Last quarter Tenable reported revenues of $149 million, up 26.1% year on year, beating analyst revenue expectations by 3.09%. It was a strong quarter for the company, with guidance for the next year beating analysts' expectations.

Is Tenable buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Tenable's revenue to grow 24.6% year on year to $153.4 million, improving on the 20% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.

Tenable Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing two upward and one downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.2%.

With Tenable being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for software stocks, but the segment has been facing declining investor sentiment following the fears around raising interest rates, with the stocks down on average 11.9% over the last month. Tenable is up 1.64% during the same time, and is heading into the earnings with analyst price target of $67.59, compared to share price of $58.13.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.