Shares in the cybersecurity exposure management firm Tenable Holdings Inc. dropped significantly in late trading after the cybersecurity company issued guidance below analysts’ estimates.

For its first quarter that ended March 31, Tenable reported a profit before costs such as stock compensation of 11 cents per share, up from six cents in the first quarter of 2022. Revenue rose 18%, to $188.8 million. Analysts had been expecting an adjusted profit of three cents per share on revenue of $187.17 million.

Tenable saw its calculated billings up 13% year-over-year in the quarter, to $176.8 million, and net cash increased to $38.7 million from $32.9 million. The company also saw a slight increase in its net loss, to $25.1 million, up from $24.5 million in the same quarter last year. Tenable has $616.7 million in cash, cash equivalents and short-term investments on hand as of the end, up from $567.4 million as of Dec. 31.

Highlights in the quarter included Tenable adding 379 new enterprise customers, including 24 net new six-figure customers. The company also delivered new features to customers to help them achieve consistent cloud security and compliance.

Tenable said new operational technology security functions unveiled in the quarter provided broader protection for OT, critical infrastructure and industrial control systems and made it easier to secure and maintain governance of the entire attack surface.

“Our ability to deliver strong operating income and cash flow in the quarter and reaffirm both for the full year is a notable accomplishment in this market,” Amit Yoran, chairman and chief executive of Tenable, said in the company’s earnings release. “Despite the macro uncertainty, we continue to gain traction with Tenable One, our Exposure Management Platform, as organizations are increasingly consolidating their spend and looking for cybersecurity solutions that drive return on investment.”

Tenable expects an adjusted profit of 12 to 13 cents per share on revenue of $189 million to $191 million in the second quarter. For its full fiscal year 2023, the company expects an adjusted profit of 57 to 61 cents a share, revenue of $775 million to $785 million, and calculated current billings of $875 million to $885 million.

The second-quarter outlook was a beat and a miss, with analysts having expected adjusted earnings per share of 10 cents and revenue of $193.7 million. The full-year outlook was a beat and two misses, with analysts having expected adjusted earnings per share of 53 cents, revenue of $805.5 million and billings of $920.6 million.

According to MarketWatch, the misses on full-year revenue and billings disappointed investors, driving a selloff in the company. Tenable shares were down nearly 15% in late trading.

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