The company's revenue from 2015 to 2017
Invest in Tenable Holdings
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Investment idea information
Tenable Network Security is a renowned global provider of cybersecurity solutions. The company develops corporate and consumer products capable of identifying vulnerabilities in any IT system and protecting from hacks.
One of the company’s key products is Tenable.io, a corporate software monitoring IT infrastructure and assessing its vulnerability. Tenable.io verifies corporate networks for compliance with specifications, scans for compromised configurations as well as analyzes and grades risks. This allows cybersecurity specialists of any company optimizing performance of its IT systems.
Tenable is the first and only provider of new class of cybersecurity solutions - Cyber Exposure. Its software is capable of tracking not only traditional IT assets but also identify new threats resulting from implementation of cloud technologies and IoT solutions.
Revenues were up 33% in 2016 and 51% in 2017. The annual average revenue growth totaled 42% for the last three years. Net operating loss has decreased by half over the last three years driving company’s performance close to breakeven in Q1 2018.
The client base grew from 21,000 to 24,000 in 2016-2017, a 14% increase. Its enterprise platform customers with annual subscription payments of over $5,000 increased 39%, from 3,100 to 4,400. Revenues generated by the existing clients grew 24% QoQ in Q1 2018. Tenable’s paid products were used by 53% of Fortune 500 and 29% of Global 2000 companies. Tenable claims that the majority of IT security professionals used Nessus, its flagship product, at some point.
Cybersecurity R&D expenses will only increase going forward, which may have a negative effect on company’s performance and slow down current revenue growth rates.
High competition. Cybersecurity is a very saturated market, while technology and consumer demand change swiftly. Tenable’s product offerings are new for the market and have not yet gained widespread use.
Partner network. Currently, the bulk of Tenable’s revenues comes from partner sales, and the company plans to stick to this strategy. Partnership agreements, however, are not exclusive, and partners of Tenable may promote services of other companies too.
United Traders already has experience investing in IPOs of IT security companies. These investments performed as follows as at July 2018:
Carbon Black +23%
ForeScout Tech. +59%
Cybersecurity Ventures published a list of the most promising and innovative IT security companies in 2018. Tenable ranked 38th in this list, with Zscaler ranked 108th, Carbon Black 23rd, and ForeScout 85th.
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