COLUMBIA, Md. - Tenable Holdings (NASDAQ:TENB), Inc., a company specializing in Exposure Management, has announced the signing of a definitive agreement to acquire Eureka Security, Inc., a provider of Data Security Posture Management (DSPM) for cloud environments. The acquisition, which is expected to close within this month, is designed to bolster Tenable's cloud security offerings by integrating Eureka Security's DSPM capabilities into its Cloud Native Application Protection Platform (CNAPP).
Eureka Security's technology provides organizations with a comprehensive view of their cloud data security posture, helping to combat policy drift, misconfigurations, and other vulnerabilities that could lead to data breaches. According to the 2024 Tenable Cloud Security Outlook study, 95% of organizations have faced cloud-related breaches in the past 18 months, with 92% reporting exposure of sensitive data.
Shai Morag, Senior Vice President and General Manager of Cloud Security at Tenable, emphasized the importance of this acquisition, stating that it will enable better prioritization of cloud risks and the identification of "toxic combinations" of vulnerabilities, misconfigurations, and over-privileged access, including data at risk.
Liat Hayun, Co-Founder and CEO of Eureka Security, expressed enthusiasm for the acquisition, noting that integrating with Tenable's CNAPP offering will create a compelling capability for customers and will help Eureka Security to expand its mission to reduce cloud data risk globally.
The integration of Eureka Security's DSPM capabilities is expected to enhance Tenable's current Cloud Security solution, which already includes unified CNAPP, CSPM protection, cloud workload protection, and industry-leading CIEM. These capabilities are anticipated to be natively integrated into Tenable Cloud Security later in the year.
Tenable has stated that the acquisition is not expected to have a material impact on revenue for this year. The company serves approximately 44,000 organizations worldwide, including a significant proportion of Fortune 500 and Global 2000 companies, as well as large government agencies.
The announcement of this acquisition comes with the usual caveats of forward-looking statements, which are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those projected.
This news article is based on a press release statement from Tenable Holdings, Inc.
In other recent news, Tenable Holdings Inc . reported a strong first quarter for 2024, with a 14% year-over-year revenue increase, reaching $216 million. The cybersecurity company's comprehensive exposure management solutions, particularly Tenable One, played a significant role in this growth. Furthermore, Tenable showcased robust financial health with $54.7 million in unlevered free cash flow and a reserve of $510.8 million in cash and short-term investments.
In light of these results, an analyst at DA Davidson adjusted the price target for Tenable shares to $56.00 from the previous $61.00 while maintaining a Buy rating. The analyst noted the competitive environment in the core Vulnerability Management market continues to be favorable for Tenable.
Looking ahead, Tenable has set Q2 revenue targets between $217 million and $219 million and anticipates full-year revenue to range from $900 million to $908 million. These projections suggest confidence in their continued growth and market position. As these recent developments unfold, Tenable's performance in the upcoming quarters will be closely watched.
InvestingPro Insights
As Tenable Holdings, Inc. (NASDAQ: TENB) forges ahead with its strategic acquisition of Eureka Security, Inc., it's worth noting some key financial metrics and expert insights that may interest investors monitoring the company's progress. Tenable, with a market capitalization of $4.9 billion, is navigating the cybersecurity landscape with a focus on growth and expansion of its cloud security services.
InvestingPro data shows that Tenable boasts a solid gross profit margin of 77.36% over the last twelve months as of Q1 2024, underlining the company's ability to maintain profitability within its operations. This impressive margin complements the company's revenue growth, which stood at 15.88% over the same period. Such financial health could be a harbinger of the company's capacity to integrate and capitalize on Eureka Security's technology effectively.
One of the InvestingPro Tips highlights that Tenable is expected to grow its net income this year. This is particularly relevant as the company embarks on this acquisition, suggesting that despite the costs associated with such a move, Tenable is poised for a positive financial trajectory. Furthermore, the tip that the company operates with a moderate level of debt adds a layer of reassurance about its financial stability in the face of this strategic expansion.
For investors looking for a deeper dive into Tenable's financials and future prospects, there are additional InvestingPro Tips available, which could provide further clarity on the company's position and outlook. Interested readers can find more expert analysis and tips by visiting the InvestingPro platform at https://www.investing.com/pro/TENB. Moreover, by using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a wealth of financial data and expert insights to guide their investment decisions.
It's also worth mentioning that analysts have set a fair value target of $59.5 for Tenable's stock, which, when compared to the previous close price of $41.26, indicates a potential upside. As the company continues to navigate the cybersecurity sector with its latest acquisition, keeping an eye on these metrics and insights could prove valuable for those invested in Tenable's journey.
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