Company: TENB
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001660280-25-000034
Chunk: 91

Company: Tenable Holdings, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7
Chunk 91
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 revenue (current), beginning of period for 2024, 2023 and 2022 includes $0.1 million, $4.1 million and $0.9 million, respectively, related to acquired deferred revenue.

Free Cash Flow

We use the non-GAAP measure of free cash flow, which we define as GAAP net cash flows from operating activities reduced by purchases of property and equipment and capitalized software development costs. We believe free cash flow is an important liquidity measure of the cash (if any) that is available, after purchases of property and equipment and capitalized software development costs, for investment in our business and to make acquisitions. We believe that free cash flow is useful as a liquidity measure because it measures our ability to generate cash. 

Our use of free cash flow has limitations as an analytical tool and you should not consider it in isolation or as a substitute for an analysis of our results under GAAP. First, free cash flow is not a substitute for net cash flows from operating activities. Second, other companies may calculate free cash flow or similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of free cash flow as a tool for comparison. Additionally, the utility of free cash flow is further limited as it does not reflect our future contractual commitments and does not represent the total increase or decrease in our cash balance for a given period. Because of these and other limitations, you should consider free cash flow along with net 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: 

Year Ended December 31,(in thousands)202420232022Net cash provided by operating activities$217,476 $149,855 $131,151 Purchases of property and equipment(4,247)(1,704)(9,359)Capitalized software development costs(6,451)(7,052)(9,789)Free cash flow$206,778 $141,099 $112,003 

Free cash flow for the periods presented was impacted by:

Year Ended December 31,(in thousands)202420232022Cash paid for interest and other financing costs(1)$(30,977)$(34,323)$(16,047)Employee stock purchase plan activity(1,016)1,077 837 Acquisition-related