TENB Stock Forecast & Price Target

Tenable Holdings reported a commendable increase in total revenue of 11% year-over-year, supported by a rise in current billings of 8%, which aligns closely with market consensus. The company's long-term remaining performance obligations (RPO) showed a substantial growth of 41% year-over-year, indicating robust future revenue potential, while the contribution from channel partners to revenue increased to 94% for calendar year 2024. Additionally, Tenable's prospects for rapid revenue growth are bolstered by the anticipated broader adoption of its non-vulnerability management products, including cloud security and identity security solutions.

Tenable Holdings has faced a decline in key financial metrics, including a drop in Net Revenue Retention (NRR) to 106% and a decrease in non-GAAP operating margins year-over-year, which is compounded by management's cuts to 2025 guidance amid rising expenses from the Apex acquisition. The company has also experienced declining gross margins since its IPO due to increased investments in cloud products and associated costs, raising concerns about sustained profitability. Additionally, Tenable's dependency on distributor Ingram Micro, which accounted for 34% of sales in the prior fiscal year, highlights potential revenue concentration risks that may impact future growth metrics such as Current Billings and Customer Count.