Shares in Tenable Holdings Inc. fell more than 10% in late trading after the cybersecurity exposure management revised its revenue guidance downward in its second-quarter earnings report, as reports suggest that the company is exploring a potential sale.

For the quarter that ended on June 30, Tenable reported adjusted earnings per share of 31 cents, up from 22 cents in the same quarter of 2023, on revenue of $221.2 million, up 13% year-over-year. Both were solid beats, as analysts had been expecting earnings per share of 24 cents on revenue of $218.5 million.

Across the quarter, Tenable added 408 new enterprise customers and 76 net new six-figure customers, driving calculated current billings or CCB to $221.1 million, up 10% year-over-year. The company saw net cash from operating activities in the quarter of $31.4 million, up from $30.2 million in the second quarter of 2023. It ended the quarter with $487 million in cash, cash equivalents and short-term investments on hand, up from $474 million as of Dec. 31 last year.

Business highlights in the quarter included Tenable acquiring cloud data security posture management platform startup Eureka Security Inc. for an undisclosed price on June 6. Tenable plans to integrate Eureka’s data security posture management solutions into its cloud-native application protection platform to help customers identify key evidence related to cloud data risk.

“We delivered better-than-expected revenue, operating income and unlevered cash flow in Q2,” Chief Executive Amit Yoran said in the company’s earnings release. “Despite lower-than-expected CCB, we saw tremendous momentum in our newer products, specifically Tenable Cloud Security and Tenable One. As we have expanded our offerings, Tenable has become a trusted source of truth for understanding and managing exposure and risk.”

For its fiscal third quarter, Tenable expects adjusted earnings per share of 28 cents to 30 cents and revenue of $222 million to $224 million. For the full year, the company expects adjusted earnings per share of $1.16 to $1.19, revenue of $889 million to $895 million and CCB of $957 million to $967 million.

The CCB figure is where investors found concern, given that Tenable had previously forecast a full-year CCB of $986 million to $994 million.

The earnings and outlook come after Bloomberg reported on Tuesday that Tenable was exploring options, including a sale after receiving takeover interest. The report suggests that the company could interest both private equity firms and strategic buyers. As of the close of regular trading today, Tenable had a market cap of $5.46 billion.

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