Shares of cybersecurity software maker Tenable (NASDAQ:TENB) jumped 5.05% in the afternoon session after the company reported second quarter results that beat analysts' revenue and earnings per share (EPS) expectations. Gross margin improved this quarter, and the company generated cash. Moving ahead, both revenue and non-GAAP operating profit guidance for next quarter and for the full year exceeded expectations. Overall, this quarter's results seemed quite positive, and shareholders should feel optimistic.
What is the market telling us:
Tenable's shares are quite volatile and over the last year have had 22 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move was three months ago, when the stock dropped 14.2% on the news that the company reported first-quarter revenue that narrowly beat analysts' expectations, although free cash flow missed. Also, sales guidance for the next quarter and full year fell short of the consensus estimates, which are major negatives for fast-growing SaaS stocks.
Tenable is up 24.6% since the beginning of the year, and at $47.22 per share it is trading close to its 52-week high of $47.51 from March 2023. Investors who bought $1,000 worth of Tenable's shares 5 years ago would now be looking at an investment worth $1,560.
Is now the time to buy Tenable? Access our full analysis of the earnings results here, it's free.