Company: TENB
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001660280-25-000034
Chunk: 103

Company: Tenable Holdings, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7
Chunk 103
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 28, 2024.

Liquidity and Capital Resources

At December 31, 2024, we had $328.6 million of cash and cash equivalents, which consisted of bank deposits and money market funds, and $248.5 million of short-term investments, which consisted of commercial paper, asset backed securities, U.S. Treasury and agency obligations and corporate and Yankee bonds. 

Since our inception, we have primarily financed our operations through cash provided by operations, including payments received from customers using our software products and services. Prior to our IPO, we did not raise any primary institutional capital, and the proceeds of our Series A and Series B redeemable convertible preferred stock financings were used to repurchase shares of capital stock from former stockholders. We have generated significant operating losses as reflected by our accumulated deficit of $861.3 million at December 31, 2024. 

We typically invoice our customers annually in advance and, to a lesser extent, multi-years in advance. Therefore, a substantial source of our cash is from such prepayments, which are included in deferred revenue on our consolidated balance sheets. Deferred revenue consists primarily of the unearned portion of billed fees for our subscriptions and perpetual licenses, which is subsequently recognized as revenue in accordance with our revenue recognition policy. At December 31, 2024, we had deferred revenue of $833.2 million, of which $650.4 million was recorded as a current liability and is expected to be recognized as revenue in the next 12 months, provided all other revenue recognition criteria are met.

Our principal uses of cash in recent periods have been funding our operations, expansion of our sales and marketing and research and development activities, investments in infrastructure, acquiring complementary businesses and technology and repurchasing shares of our common stock. We paid $29.2 million, $243.3 million and $66.8 million to acquire businesses in 2024, 2023 and 2022, respectively. In February 2025, we acquired Vulcan Cyber Ltd., or Vulcan Cyber, for approximately $148 million in cash and $2 million of restricted stock units (RSUs) that vest over a future period. We expect to enter into arrangements to acquire or invest in other complementary businesses, services and technologies, including intellectual property rights, in the future. 

We expect to continue incurring operating losses in the near term. Even though we generated positive cash flows from operations and free cash flow in 2024, 2023 and 2022