Tenable Earnings: Promising Exposure Management Momentum Supports Strong Results

We are raising our fair value estimate for narrow-moat Tenable to $43 from $37 after the firm reported fourth-quarter results above guidance and our expectations. We are impressed with the firm delivering both revenue and non-GAAP profitability upside in the quarter, all while expanding its exposure management toolkit. Tenable also mentioned its focus on improving sales productivity and efficiency as it scales its business, resulting in a 5% reduction in its workforce. Management provided its 2024 and first-quarter guidance, which considers the impacts of the firm’s recent Ermetic acquisition and personnel reduction. In our view, Tenable is well-positioned to benefit from secular tailwinds toward greater cybersecurity spending and vendor consolidation with its exposure management offerings. With shares up 8% after hours, we view the stock as fairly valued.