Cybersecurity software maker Tenable (NASDAQ:TENB) will be reporting earnings tomorrow after market close. Here's what you need to know.
Last quarter Tenable reported revenues of $195 million, up 18.7% year on year, beating analyst revenue expectations by 2.52%. It was a solid quarter for the company, with a meaningful improvement in its gross margin and a decent beat of analysts' revenue estimates.
Is Tenable buy or sell heading into the earnings? Read our full analysis here.
This quarter analysts are expecting Tenable's revenue to grow 13.5% year on year to $198.4 million, slowing down from the 26.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.18 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. 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 2.32%.
Looking at Tenable's peers in the cybersecurity segment, only Varonis has so far reported results, with revenues decreasing 0.81% year on year, missing analyst estimates by 2.53%.Read our full analysis of Varonis's earnings results here.
Tech stocks have been facing declining investor sentiment since 2022 and while some of the cybersecurity stocks have fared somewhat better, they have not been spared, with share price declining 8.09% over the last month. Tenable is down 7.34% during the same time, and is heading into the earnings with analyst price target of $55.2, compared to share price of $42.32.
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.
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The author has no position in any of the stocks mentioned.