Tenable Holdings Enters the Market With a Bang

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Tenable Holdings Inc. (NASDAQ: TENB) entered the market with a bang on Thursday. Its 10.9 million shares originally priced at $23, above the expected price range of $20 to $22 a piece. However, the stock didn’t actually enter the market at $23 but at $33. At the $23 price, the entire offering was valued up to $288.3 million.

The underwriters for the offering are Morgan Stanley, JPMorgan, Allen, Deutsche Bank, Stifel, William Blair and BTIG.

The company is the first and only provider of solutions for a new category of cybersecurity that it is calling Cyber Exposure. Cyber Exposure is a discipline for managing and measuring cybersecurity risk in the digital era. The company is building on its deep technology expertise in the traditional vulnerability assessment and management market and expanding that market to include modern attack surfaces and provide analytics that translate vulnerability data into business insight.

Tenable’s platform provides a company’s chief information security officer (CISO) with unified visibility into the organization’s state of security and enables security teams to prioritize and focus remediation efforts. The platform also translates vulnerability data into actionable business metrics and insights that boards of directors and executives can understand and use to make strategic decisions. Management believes its Cyber Exposure solutions are transforming how security is managed and measured and will help organizations more rapidly embrace digital transformation.

The company described its finances in the filing as follows:

In 2016 and 2017, our total revenue was $124.4 million and $187.7 million, respectively, representing a year-over-year growth rate of 51%. In the three months ended March 31, 2017 and 2018, our total revenue was $40.5 million and $59.1 million, respectively, representing a year-over-year growth rate of 46%. In both 2016 and 2017, our recurring revenue, which includes revenue from subscription arrangements for software and cloud-based solutions and maintenance associated with perpetual licenses, represented 86% of our total revenue.

Tenable expects to use the net proceeds from this offering for working capital and other general corporate purposes.

Shares of Tenable were last seen up about 36% from the original pricing to $31.40, with a range of $30.60 to $33.89 on the day so far. Also, about 6.7 million shares have moved as of 1:15 pm Eastern.