Summary
Tenable Holdings, a cybersecurity company that went public in July at $23 per share, has just reported its first earnings quarter since going public.
Despite beating Wall Street's expectations on both the top and bottom lines, Tenable retreated from all-time highs post-earnings.
Revenue growth continued at a rapid 44% y/y pace, decelerating only two points from last quarter's growth rate.
A slowdown in billings growth and three-point decline in gross margins, however, weighed on the results.
Investors are probably balking at Tenable's high valuation (the stock now has a double-digit revenue multiple), but a product with a massive TAM and a strong track record for growth give Tenable plenty of upside potential.
Two months after going public, Tenable Holdings (TENB), a cybersecurity company whose products help enterprises manage "cyber exposure" across a variety of IT assets, has reported its first earnings quarter. The good news is that Tenable Holdings beat Wall Street's expectations, which is an important test for a newly public company that helps to determine its trading momentum and ability to withstand Street pressure. The unfortunate news is that investors weren't particularly satisfied with the smallish beat to consensus estimates, and recoiled at the company's relatively high valuation. Since reporting earnings, Tenable shares have retreated from all-time highs, though shares are still 48% above the IPO price of $23 and about 10% higher than the closing price on the first day of trading:
