Why Is Tenable (TENB) Stock Soaring Today

Radek Strnad /
2024/02/07 12:42 pm EST

What Happened:

Shares of cybersecurity software maker Tenable (NASDAQ:TENB) jumped 9% in the morning session after the company reported fourth-quarter results that beat analysts' revenue, calculated current billings, and EPS expectations. It also delivered solid free cashflow. The topline growth benefitted from "healthy customer demand," with the business increasingly closing "larger customers." Notably, the company added 156 net new six-figure customers, which was more than 2x higher than the same quarter last year. 

On the other hand, its revenue guidance slightly missed analysts' expectations. Overall, the results were still solid. After the initial pop the shares cooled down to $49.27, up 3.5% from previous close.

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What is the market telling us:

Tenable's shares are somewhat volatile and over the last year have had 10 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 biggest move we wrote about over the last year was 10 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 12.5% since the beginning of the year. Investors who bought $1,000 worth of Tenable's shares 5 years ago would now be looking at an investment worth $1,799.

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