Company: TENB
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001660280-25-000128
Chunk: 64

Company: Tenable Holdings, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 64
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 currently evaluating the impact of adopting this standard on our consolidated financial statements and disclosures.In September 2025, the FASB issued ASU 2025-06 - Targeted Improvements to the Accounting for Internal-Use Software, which updates the requirements for capitalization of internal-use software, removing all references to project stages and clarifies the threshold entities apply to begin capitalizing costs. The guidance is effective for our interim and annual reporting periods beginning January 1, 2028. We are currently evaluating the impact of adopting this standard on our consolidated financial statements and disclosures.

 2. Revenue

Disaggregation of RevenueThe following table presents a summary of revenue:Three Months Ended September 30,Nine Months Ended September 30,(in thousands)2025202420252024Subscription revenue$232,211 $208,554 $680,685 $608,727 Perpetual license and maintenance revenue11,088 11,769 34,051 35,941 Professional services and other revenue9,141 6,765 24,136 19,622 Revenue$252,440 $227,088 $738,872 $664,290 Concentrations We sell and market our products and services through our field sales force that works closely with our channel partners, which includes a network of distributors and resellers, in developing sales opportunities. We use a two-tiered channel model whereby we sell our products and services to our distributors, which in turn sell to resellers, which then sell to end users. Revenue derived through our channel network comprised 94% of revenue in the three and nine months ended September 30, 2025 and 2024. One of our distributors accounted for 32% of revenue in the three and nine months ended September 30, 2025 and 33% and 34% of revenue in the three and nine months ended September 30, 2024, respectively. That same distributor accounted for 28% and 29% of accounts receivable at September 30, 2025 and December 31, 2024, respectively.

9

Contract BalancesWe generally bill our customers in advance and accounts receivable are recorded when we have the right to invoice the customer. Contract liabilities consist of deferred revenue and include customer billings and payments received in advance of performance under the contract. In the three months ended September 30, 2025 and 2024 and the nine months ended September