Company: TENB
Filing Date: 2025-04-03
Form Type: DEF 14A
Source: 0001660280-25-000058
Chunk: 98

Company: Tenable Holdings, Inc.
Filing Date: 2025-04-03
Form: DEF 14A
Chunk 98
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 performance. Given that most of our customers pay in advance, but we typically recognize a majority of the related revenue ratably over time, we use calculated current billings to measure and monitor our ability to provide our business with the working capital generated by upfront payments from our customers. We believe that calculated current billings, which excludes deferred revenue for periods beyond twelve months in a customer’s contractual term, more closely correlates with annual contract value. Variability in total billings, depending on the timing of large multi-year contracts and the preference for annual billing versus multi-year upfront billing, may distort growth in one period over another.

The following table presents a reconciliation of revenue, the most directly comparable financial measure calculated in accordance with GAAP, to calculated current billings:

|                                                    | (in thousands) | Year Ended December 31, |     2024 |     |   |     2023 |
|:---------------------------------------------------|:---------------|:------------------------|---------:|:----|:--|---------:|
| Revenue                                            |                | $                       |  900,021 |     | $ |  798,710 |
| Deferred revenue (current), end of period          |                |                         |  650,372 |     |   |  580,779 |
| Deferred revenue (current), beginning of period(1) |                |                         | -580,887 |     |   | -506,192 |
| Calculated current billings                        |                | $                       |  969,506 |     | $ |  873,297 |

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(1) Deferred revenue (current), beginning of period for 2024 and 2023 includes $0.1 million and $4.1 million, respectively, related to acquired deferred revenue.

#### Free Cash Flow and Unlevered Free Cash Flow
We define free cash flow, a non-GAAP financial measure, as 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 or use cash.

We also use the non-GAAP measure of unlevered free cash flow, which we define as free cash flow plus cash paid for interest and other financing costs. We believe unlever