Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
Our verdict in one paragraph. Tenable is a decent, understandable software business with a real but narrow moat, run by capable and apparently honest operators who have handled a tragic leadership transition with more grace than most boards manage. It is not a wonderful business. Revenue growth has decelerated for eight consecutive years, from 42% in 2018 to a guided 8% in 2026. Existing customers expand spending at only 106% a year. The company spends roughly 39 cents of every revenue dollar on sales and marketing just to grow single digits, and pays its people close to $190 million a year in stock. It has never reported a full year of GAAP profit in its history as a public company.
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