Tenable Holdings Reports $239.1 Million Revenue in Q1 2025, Net Loss Increases to $22.9 Million

Tenable Holdings, Inc. reported a revenue of $239.1 million for the first quarter of 2025, marking an increase of 11% from $216.0 million in the same period last year. The company's gross profit also rose to $186.7 million, up from $167.0 million, resulting in a gross margin of 78%. However, Tenable recorded a net loss of $22.9 million, compared to a loss of $14.4 million in the prior year, with a net loss per share of $0.19, up from $0.12. The increase in losses was attributed to higher operating expenses, which totaled $204.4 million, up from $176.0 million, driven by increased costs in sales and marketing, research and development, and general administrative expenses.

In terms of operational metrics, Tenable's customer base showed growth, with 2,042 customers generating annual contract values of $100,000 or more, a 19% increase from 1,717 in the previous year. The company also reported a dollar-based net expansion rate of 108%, slightly down from 109% a year earlier, indicating strong customer retention and upselling capabilities. The Americas accounted for the majority of revenue at $150.6 million, while international revenue reached $61.2 million, reflecting a 13% increase year-over-year.

Strategically, Tenable made a significant acquisition in February 2025, purchasing Vulcan Cyber Ltd. for $148.5 million. This acquisition is expected to enhance Tenable's exposure management platform by adding capabilities in cyber risk management. The integration of Vulcan's technology is anticipated to strengthen Tenable's offerings and improve its competitive position in the market. The company also continued its stock repurchase program, having repurchased approximately 1.6 million shares for $60 million during the quarter, with a total of $125 million remaining under the current authorization.

Looking ahead, Tenable expects to continue facing challenges related to market conditions and operational costs, particularly in light of ongoing inflation and interest rate fluctuations. The company anticipates that its existing cash and cash equivalents, along with short-term investments totaling $460.2 million, will be sufficient to meet its operational and capital needs for at least the next 12 months. However, Tenable acknowledges the potential need for additional financing to support future growth initiatives, including further acquisitions and investments in technology and infrastructure.