Tenable Holdings Plunges 17.04% on Weak Earnings Outlook

On April 30, 2025, Tenable Holdings experienced a significant drop of 17.04% in pre-market trading, marking a notable decline in its stock performance.

Tenable Holdings reported an 11% year-over-year revenue growth for the first quarter of 2025, surpassing their guided range by $5.1 million. The company's co-CEOs, Steve Vintz and Mark Thurmond, highlighted strong performance in Q1 2025, with revenue reaching $239.1 million, reflecting 11% year-over-year growth.

Despite the positive revenue growth, Tenable's stock price tumbled due to a weak earnings outlook. The company's earnings per share (EPS) for Q1 2025 was $0.36, outperforming the forecasted $0.28, representing a surprise of approximately 28.6%. However, the market's reaction suggests that investors were disappointed with the company's guidance for the rest of the year.

Tenable's stock price decline was also influenced by a reduction in its price target by analysts. The company's price target was reduced from $53 to $43, reflecting a more cautious outlook on its future performance. This, combined with the weak earnings outlook, contributed to the significant drop in Tenable's stock price.