Company: TENB
Filing Date: 2025-04-03
Form Type: DEF 14A
Source: 0001660280-25-000058
Chunk: 100

Company: Tenable Holdings, Inc.
Filing Date: 2025-04-03
Form: DEF 14A
Chunk 100
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(1) The tax payment on intra-entity asset transfer in 2024 includes $0.3 million of interest that is included in cash paid for interest and other financing costs.

#### Non-GAAP Income from Operations
We use non-GAAP income from operations as a key indicator of our financial performance. We define non-GAAP income from operations as loss from operations, excluding the effects of stock-based compensation, acquisition-related expenses, restructuring expenses, costs related to the intra-entity asset transfers resulting from the internal restructuring of legal entities and amortization of acquired intangible assets. Acquisition-related expenses include transaction and integration expenses as well as costs related to the intercompany transfer of acquired intellectual property. Restructuring expenses include non-ordinary course severance, employee related benefits and other charges to reorganize business operations.

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The following table presents a reconciliation of loss from operations, the most directly comparable financial measure calculated in accordance with GAAP, to non-GAAP income from operations:

|                                            | (dollars in thousands) | Year Ended December 31, |    2024 |     |   |    2023 |
|:-------------------------------------------|:-----------------------|:------------------------|--------:|:----|:--|--------:|
| Loss from operations                       |                        | $                       |  -6,856 |     | $ | -52,160 |
| Stock-based compensation                   |                        |                         | 163,515 |     |   | 145,327 |
| Acquisition-related expenses               |                        |                         |   1,932 |     |   |   9,472 |
| Restructuring                              |                        |                         |   6,070 |     |   |   4,499 |
| Amortization of acquired intangible assets |                        |                         |  19,457 |     |   |  13,859 |
| Non-GAAP income from operations            |                        | $                       | 184,118 |     | $ | 120,997 |

Non-GAAP Net Income and Non-GAAP Earnings Per Share

We use non-GAAP net income, which excludes stock-based compensation, acquisition-related expenses, restructuring expenses and amortization of acquired intangible assets, as well as the related tax impacts, and the tax impact and related costs of intra-entity asset transfers resulting from the internal restructuring of legal entities as well as deferred income tax benefits recognized in connection with acquisitions, to calculate non-GAAP earnings per share.