Company: TENB
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001660280-25-000128
Chunk: 22

Company: Tenable Holdings, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 products, including Nessus are also offered on a standalone basis.

Our platform offerings are primarily sold on a subscription basis with a one-year term, but are increasingly being sold with longer contractual durations. Our subscription terms are generally not longer than three years. These subscriptions are typically invoiced in advance at the beginning of the term, however multi-year subscriptions are increasingly being invoiced annually in installments.

We sell and market our products and services through our field sales force that works closely with our channel network of distributors, resellers and managed security service providers (MSSPs), in developing sales opportunities. We typically use a two-tiered channel model whereby we sell our enterprise platform offerings to our distributors, who in turn sell to our resellers, who then sell to end users, who we call customers.

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Financial Highlights

Below are our key financial results:

Three Months Ended September 30,Nine Months Ended September 30,(in thousands, except per share data)2025202420252024Revenue$252,440 $227,088 $738,872 $664,290 Income (loss) from operations7,136 (2,083)(18,023)(19,831)Net income (loss)2,260 (9,211)(35,381)(38,169)Net earnings (loss) per share, basic and diluted0.02 (0.08)(0.29)(0.32)Net cash provided by operating activities53,850 54,607 183,720 136,357 Purchases of property and equipment(867)(733)(11,768)(1,924)Capitalized software development costs(1,353)(1,163)(2,676)(5,930)

Recurring revenue, which includes revenue from subscription arrangements for software (both recognized ratably over the subscription term and upon delivery) and cloud-based solutions and maintenance associated with perpetual licenses, represented 95% and 96%, respectively of revenue in the three and nine months ended September 30, 2025 and 96% in the three and nine months ended September 30, 2024.

Key Operating and Financial Metrics

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use and monitor the following operating and financial metrics, which include non-GAAP financial measures, to understand and evaluate our core operating and financial performance. 

Calculated Current Billings

We use the non-GAAP measure of calculated current billings,