Shares of Tenable Holdings Inc (NASDAQ:TENB) are trading over 15% lower in premarket Tuesday after the company slashed its full-year forecast. The guide down is a result of weakness experienced in the final weeks of March.
The company reported Q1 EPS of $0.11 to beat the analyst estimate of $0.03. Revenue for the quarter came in at $188.8 million, again higher than the consensus estimate of $187.17M.
"Our ability to deliver strong operating income and cash flow in the quarter and reaffirm both for the full year is a notable accomplishment in this market," said Amit Yoran, Chairman and CEO of Tenable.
"Despite the macro uncertainty, we continue to gain traction with Tenable One, our Exposure Management Platform, as organizations are increasingly consolidating their spend and looking for cybersecurity solutions that drive return on investment."
For FY23, Tenable now sees revenue at $780M, down from the prior forecast of $805M. The adjusted net income is expected at $71.5M, up from the $65.5M previously expected. Finally, the adjusted EPS is seen at $0.59, up from $0.54 and better than the consensus of $0.53.
For the second quarter, Tenable guided to EPS of $0.12-$0.13 on revenue of $190M. Analysts were expecting EPS of $0.10 on revenue of $193.7M.
Morgan Stanley analysts cut the price target to $44 per share.
“While the Q1 miss and guide down are not likely to be received kindly by investors, the aftermarket price of ~$39/share now implies a considerable discount to closest Vulnerability Management (VM) peer, QLYS, on a growth adjusted basis,” they said in a note.
BTIG analysts reiterated a Neutral rating on the TENB stock.
“An uncertain macro environment is having a clear impact on demand, and we think vulnerability management is going through something of a digestion period after two years of elevated growth.”