What Happened:
Shares of cybersecurity software maker Tenable (NASDAQ:TENB) fell 14.2% in the pre-market session after 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.
What is the market telling us:
Tenable's shares are somewhat volatile and over the last year have had 31 moves greater than 5%. But moves this big are very rare even for Tenable and that is indicating to us that this news had a significant impact on the market's perception of the business.
Tenable is down 3.03% since the beginning of the year, and at $36.75 per share it is trading 37.3% below its 52-week high of $58.64 from April 2022. Investors who bought $1,000 worth of Tenable's shares at the IPO in July 2018 would now be looking at an investment worth $1,210.
Is now the time to buy Tenable? Access our full analysis of the earnings results here, it's free.