Company: TENB
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001660280-25-000090
Chunk: 48

Company: Tenable Holdings, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 48
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 cash provided by operating activities and our other GAAP financial measures.

The following table presents a reconciliation of net cash provided by operating activities, the most directly comparable financial measure calculated in accordance with GAAP, to free cash flow: 

Three Months Ended June 30,Six Months Ended June 30,(in thousands)2025202420252024Net cash provided by operating activities$42,463 $31,424 $129,870 $81,750 Purchases of property and equipment(4,348)(526)(10,901)(1,191)Capitalized software development costs(699)(2,235)(1,323)(4,767)Free cash flow(1)$37,416 $28,663 $117,646 $75,792 

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(1)    Free cash flow for the periods presented was impacted by:

Three Months Ended June 30,Six Months Ended June 30,(in thousands)2025202420252024Cash paid for interest and other financing costs$(6,859)$(7,839)$(13,433)$(15,450)Employee stock purchase plan activity4,923 3,702 (490)(2,630)Acquisition-related expenses(1,630)(197)(4,819)(663)Restructuring— (1,597)— (5,419)

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Customer Metrics

We believe that our customer base provides a significant opportunity to expand sales of our enterprise platform offerings. We define an enterprise platform customer as a customer that has licensed Tenable One, Tenable Vulnerability Management, Tenable Cloud Security, Tenable Identity Exposure, Tenable OT Security or Tenable Security Center for an annual amount of $5,000 or greater. New enterprise platform customers represent new customer logos during the periods presented and do not include customer conversions from Tenable Nessus Expert to enterprise platforms. The following tables summarize key components of our customer base:

Three Months Ended June 30,20252024Change (%)Number of new enterprise platform customers added in period367408(10)%

June 30,20252024Change (%)Number of customers with $100,000 and greater in annual contract value at end of period2,1181,79318%

Dollar-Based Net Expansion Rate

Our dollar-based net expansion rate reflects both our customer retention and ability to drive additional sales to our existing customers. Our dollar-based net expansion rate has historically fluctuated and is expected to continue to fluctuate on a quarterly