Shares in both Tenable Inc. and Commvault Systems Inc. dropped significantly today despite both reporting stronger-than-expected earnings results.

For the quarter ended June 30, Tenable reported a profit before costs such as stock compensation of five cents a share, down from nine cents a share in the same quarter of last year. Revenue rose 26%, to $164.3 million. Analysts had been expecting a profit per share of one cent on revenue of $163.2 million.

Calculated billings in the quarter came in at $174.1 million, up 27% year-over-year, and net cash provided by operating activities was $30.5 million, up from $16.5 million in the second quarter of 2021.

Highlights in the quarter included Tenable adding 540 new enterprise platform customers and 79 net new customers spending at least $100,000 a year. The company completed its acquisition of Bit Discovery Inc., a $45.5 million deal announced in April and launched Tenable.asm, a service that allows customers to discover connections to internet-facing assets.

“We are very pleased with results this quarter despite a difficult macro environment,” Amit Yoran, chairman and chief executive officer of Tenable, said in a statement. “During the quarter, we saw strong customer demand through higher levels of new enterprise platform customer adds and an increasing number of net new six-figure customers. Our momentum in the first half of the year positions us well for continued success.”

For the third quarter of 2022, Tenable predicts an adjusted profit of three to four cents a share on revenue of $169 million to $171 million. Analysts had expected a four-cent profit on revenue of $171.3 million. For the full fiscal year, Tenable is predicting an adjusted profit of 17 to 20 cents a share on revenue of $673 million to $679 million, whereas analysts had been expecting 18 cents and $676.8 million.

The only possible negative in the figures was a small miss on revenue outlook for the third quarter, but investors were seemingly expecting better results.  Tenable shares fell almost 12% in late trading.

Commvault, which presented its results at the opening of trading, reported an adjusted profit of 64 cents a share on revenue of $198 million. Analysts had been predicting a 63-cent profit and $195.21 million in revenue.

Software and product revenue in the quarter came in at $92.4 million, up 13% year-over-year, driven by a 24% increase in larger deals. The number of large deals in the quarter came in at 184, accounting for 75% of software and product revenue.

For the quarter ahead, Commvault is predicting revenue of $184 million to $188 million. According to the company’s earnings call transcript where it revealed its outlook, that was slightly below market expectations. “Our guidance reflects what we’re seeing in the current macroeconomic environment,” Sanjay Mirchandani, president and chief executive officer of Commvault, said on the call. “And if you add to that the Q2 is seasonally a low point for the year.”

Like Tenable, investors have seemingly focused on Commvault’s outlook. Its shares fell almost 10% in regular trading, to $55.23.

Photo: Ordercrazy/Wikimedia Commons