TENB Stock Forecast & Price Target

Tenable Holdings demonstrated strong financial performance in the second quarter, with total revenue reaching $247.3 million, reflecting a 12% year-over-year increase and surpassing both Street estimates and company guidance. The company's calculated current billings of $238.6 million, up 8% year-over-year, indicate robust customer acquisition and retention, particularly within its growing TenableOne platform and successful performance in the public sector. Additionally, channel partners contributed significantly to revenue, accounting for 94% of expected revenue in CY24, which underscores Tenable's effective sales strategy and enhances future growth potential.

Tenable Holdings has faced challenges regarding profitability, as gross margins are expected to remain flat or decline modestly due to increasing costs associated with new product launches, including third-party data remediation and AI capabilities. Furthermore, the company has lowered its revenue guidance for the fiscal year 2025, indicating expected slower growth rates compared to prior expectations, accompanied by a decline in non-GAAP operating margins year-over-year. Key investor metrics, such as Calculated Current Billings growth and Dollar-Based Net Expansion, are showing signs of weakening, which may negatively impact investor sentiment and the valuation of Tenable's stock.