Tenable: Proactive protection against insider threats
Tenable $TENB specializes in cybersecurity with a focus on insider threats. Instead of reactive defense, it offers a proactive approach - scanning and detecting vulnerabilities in IT systems to help prevent cyber attacks.
Its flagship product, Nessus, analyses networks to look for weak passwords, configuration errors or unauthorised access, minimising the risk of data leaks and hacking attacks.
Key benefits and strengths:
Proactive cybersecurity
- Does not wait for an attack, but detects and fixes weaknesses in systems
- Protects against internal and external threats
Integrated Tenable One platform
- Comprehensive vulnerability management across applications and platforms
- Easy integration with corporate infrastructure
Stable growth and profitability
- Average revenue growth of 20% per year (2019-2024)
- Profitable company, a strong competitive advantage
- Expected revenue growth of 9% per year until 2027
Stronger market position
- While growing more slowly than CrowdStrike or CyberArk, its proactive approach makes it an important player in the cybersecurity space
Risks and challenges:
Slowing growth
- Revenues have been growing at 20% per year, but the pace is set to slow to 9%
- Competition with faster growing companies like CrowdStrike
Strong competition in the cybersecurity market
- Struggling with big players like Palo Alto Networks, Fortinet and Microsoft
- Need to innovate and expand offerings to remain competitive
Risk of falling demand in a recession
- Companies may cut cybersecurity budgets in times of economic uncertainty
Reasons for optimism:
Strong proactive security technology
Steady revenue growth and profitability $TENB
Reasons to be cautious:
Expected slowdown in revenue growth
Strong competition in the cybersecurity market
Tenable is a solid cybersecurity investment that combines profitability and growing demand for proactive protection. Not the fastest growing company $TENB in the industry, but its focus on insider threats and solid financial performance make it a smart choice for investors looking to balance growth and security.
Tenable is clearly a quality company, but the question is whether it can grow quickly and compete with other companies in the sector.
I used to think about $PANW, but it was too big a risk for me and I bought $AMZN instead.
I only have $CRWD from this area and I am satisfied. $CRWD is growing faster and they have a better business, so I won't buy anything else.