What drove TENB's consistent EPS growth in 2024?

Tenable Holdings Inc. (TENB) achieved consistent EPS growth in 2024 due to several key factors: 1. **Revenue Growth**: Tenable's revenue increased significantly, driven by strong performance across its business segments. The Subscription segment contributed the most with $824.66 million, followed by Perpetual License and Maintenance at $47.77 million, and Professional Services and Other at $27.59 million. This growth in revenue is a direct result of the company's successful exposure management solutions, including Tenable One and Cloud Native Application Protection Platform, which have seen increasing demand. |code|Ticker|Name|Date|Business Composition|Revenue By Business|market_code| |---|---|---|---|---|---|---| |TENB|TENB.O|Tenable Holdings|20240101-2024|Professional Services and Other|2.7588E7|185| |TENB|TENB.O|Tenable Holdings|20240101-2024|Professional Services and Other|1.9622E7|185| |TENB|TENB.O|Tenable Holdings|20240101-2024|Professional Services and Other|1.2857E7|185| |TENB|TENB.O|Tenable Holdings|20240101-2024|Professional Services and Other|6170000|185| |TENB|TENB.O|Tenable Holdings|20240101-2024|Perpetual License and Maintenance|1.2156E7|185| |TENB|TENB.O|Tenable Holdings|20240101-2024|Professional Services and Other|6170000|185| |TENB|TENB.O|Tenable Holdings|20240101-2024|Subscription|1.97635E8|185| 2. **Strategic Product Advancements**: Tenable's focus on AI-powered solutions and enhanced product features, such as Vulnerability Intelligence and Exposure Response, has positioned it well in the market. The introduction of Tenable Enclave Security has also catered to highly secure environments, further expanding the company's market reach. 3. **Market Penetration and Customer Growth**: The company has seen significant growth in both new enterprise platform customers and six-figure customers, with 485 new enterprise platform customers added in Q4. This expansion in customer base contributes to revenue growth and, consequently, EPS growth. 4. **Operational Efficiency**: Tenable's operating margin improved to 25% in Q4, exceeding expectations. This improvement in operational efficiency reflects the company's effective cost management and scalability, which directly impacts net income and EPS growth. 5. **Investment in Research and Development**: Tenable continued to invest heavily in R&D, with $44.73 million spent in Q4. This investment in innovation ensures the company remains competitive and capable of capitalizing on emerging market opportunities. |code|Ticker|Name|Date|R&D Expenses|R&D Expenses YoY|market_code| |---|---|---|---|---|---|---| |TENB|TENB.O|Tenable Holdings|2024 Q1|4.3727E7|14.519550585339026|185| |TENB|TENB.O|Tenable Holdings|2024 Q2|4.5149E7|19.299775399656493|185| |TENB|TENB.O|Tenable Holdings|2024 Q3|4.802E7|29.60164093706143|185| |TENB|TENB.O|Tenable Holdings|2024 Q4|4.4728E7|11.588453958037073|185| In summary, Tenable's EPS growth in 2024 is driven by robust revenue growth, strategic product advancements, successful market penetration, improved operational efficiency, and sustained investment in R&D. These factors combined have enabled the company to deliver strong financial results and exceed market expectations.