Shares of Tenable Holdings Inc. (NASDAQ: TENB) plunged 16.57% in the 24-hour period following the release of its first-quarter 2025 financial results. The cybersecurity software company's stock took a hit despite beating revenue and earnings expectations, as investors focused on disappointing billings guidance.

Tenable reported Q1 revenue of $239.1 million, up 10.7% year-over-year and exceeding analyst estimates of $233.6 million. Adjusted earnings per share came in at $0.36, significantly above the consensus expectation of $0.28. However, the company's full-year billings guidance of $1.035 billion fell short of analyst projections of $1.071 billion, representing a 3.4% miss.

The market's negative reaction appears to stem from concerns about future growth, as billings are considered a key indicator of upcoming revenue. Despite reaffirming its full-year revenue guidance of $975 million at the midpoint, investors seem worried about potential slowdowns in customer acquisition and expansion.

Adding to the bearish sentiment, several analysts lowered their price targets for Tenable following the earnings release. Canaccord Genuity cut its target price to $45 from $53, while D.A. Davidson made a more drastic reduction, lowering its target to $28 from $45.

The sharp decline in Tenable's stock price highlights the market's sensitivity to growth expectations in the competitive cybersecurity sector, even when companies exceed current quarter expectations. As Tenable faces challenges in maintaining its growth trajectory, investors will be closely watching for signs of improvement in the company's billings and customer acquisition metrics in the coming quarters.