Tenable Announces First Quarter 2024 Financial Results

May 1, 2024 at 4:06 PM EDT
  • Revenue of $216.0 million, up 14% year-over-year.
  • Calculated current billings of $197.8 million, up 12% year-over-year.
  • GAAP operating margin of (4)%; Non-GAAP operating margin of 17%.
  • Net cash provided by operating activities of $50.3 million; Unlevered free cash flow of $54.7 million.

COLUMBIA, Md., May 01, 2024 (GLOBE NEWSWIRE) --  Tenable Holdings, Inc. ("Tenable") (Nasdaq: TENB), the Exposure Management company, today announced financial results for the quarter ended March 31, 2024.

"We delivered strong results for the first quarter, highlighted by 14% revenue growth and 17% operating margin driven by traction in our unified platform," said Amit Yoran, Chairman and CEO of Tenable. "Our exposure management solutions, including Tenable One and Cloud Native Application Protection Platform, are resonating with our customers as they look to get a unified picture of risk within their interconnected environment."

First Quarter 2024 Financial Highlights

  • Revenue was $216.0 million, a 14% increase year-over-year.
  • Calculated current billings was $197.8 million, a 12% increase year-over-year.
  • GAAP loss from operations was $8.9 million, compared to $19.2 million in the first quarter of 2023.
  • Non-GAAP income from operations was $37.0 million, compared to $18.1 million in the first quarter of 2023.
  • GAAP net loss was $14.4 million, compared to $25.1 million in the first quarter of 2023.
  • GAAP net loss per share was $0.12, compared to $0.22 in the first quarter of 2023.
  • Non-GAAP net income was $30.4 million, compared to $13.1 million in the first quarter of 2023.
  • Non-GAAP diluted earnings per share was $0.25, compared to $0.11 in the first quarter of 2023.
  • Cash and cash equivalents and short-term investments were $510.8 million at March 31, 2024, compared to $474.0 million at December 31, 2023.
  • Net cash provided by operating activities was $50.3 million, compared to $38.7 million in the first quarter of 2023.
  • Unlevered free cash flow was $54.7 million, compared to $44.2 million in the first quarter of 2023.
  • Repurchased 0.5 million shares of our common stock for $25.0 million.

Recent Business Highlights

  • Added 410 new enterprise platform customers.
  • Net new six-figure customers decreased by 4. This metric is calculated on an LTM basis and was impacted by a higher-than-usual number of customers who dropped below the six-figure threshold in Q1 2023.
  • Launched Tenable One for OT/IoT Security, making Tenable One the first and only exposure management platform to provide holistic visibility into assets across IT and operational technology (OT) environments.
  • Expanded generative AI capabilities within Tenable One, enabling customers to quickly summarize relevant attack paths, ask questions of an AI assistant and receive specific mitigation guidance.
  • Moody's upgraded our corporate family credit rating to Ba3 from B1; S&P upgraded our credit rating to BB- from B+.
  • Ranked first in device vulnerability management market share for fifth consecutive year by IDC.
  • Awarded a coveted five star rating for the Tenable Assure Partner Program by CRN.

Financial Outlook

For the second quarter of 2024, we currently expect:

  • Revenue in the range of $217.0 million to $219.0 million.
  • Non-GAAP income from operations in the range of $34.0 million to $36.0 million.
  • Non-GAAP net income in the range of $28.0 million to $30.0 million, assuming interest expense of $8.2 million, interest income of $5.9 million and a provision for income taxes of $3.1 million.
  • Non-GAAP diluted earnings per share in the range of $0.22 to $0.24.
  • 124.5 million diluted weighted average shares outstanding.

For the year ending December 31, 2024, we currently expect:

  • Calculated current billings in the range of $986.0 million to $994.0 million.
  • Revenue in the range of $900.0 million to $908.0 million.
  • Non-GAAP income from operations in the range of $158.0 million to $163.0 million.
  • Non-GAAP net income in the range of $135.0 million to $140.0 million, assuming interest expense of $32.8 million, interest income of $24.2 million and a provision for income taxes of $12.3 million.
  • Non-GAAP diluted earnings per share in the range of $1.08 to $1.12.
  • 125.0 million diluted weighted average shares outstanding.
  • Unlevered free cash flow in the range of $220.0 million to $230.0 million.

Conference Call Information

Tenable will host a conference call on May 1, 2024 at 4:30 p.m. Eastern Time to discuss its financial results. The conference call can be accessed at 877-407-9716 (U.S.) and 201-493-6779 (international). A live webcast of the event will be available on the Tenable Investor Relations website at https://investors.tenable.com. An archived replay of the live broadcast will be available on the Investor Relations page of the website following the call.

About Tenable

Tenable® is the Exposure Management company. Approximately 44,000 organizations around the globe rely on Tenable to understand and reduce cyber risk. As the creator of Nessus®, Tenable extended its expertise in vulnerabilities to deliver the world’s first platform to see and secure any digital asset on any computing platform. Tenable customers include approximately 65 percent of the Fortune 500, approximately 50 percent of the Global 2000, and large government agencies. Learn more at tenable.com.

Contact Information

Investor Relations
investors@tenable.com

Media Relations
tenablepr@tenable.com

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, including statements regarding our future results of operations and financial position, business strategy and plans and objectives for future operations, are forward-looking statements and represent our views as of the date of this press release. The words “anticipate,” "believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of assumptions and risks and uncertainties, many of which involve factors or circumstances that are beyond our control that could affect our financial results. These risks and uncertainties are detailed in the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2023 as well as other filings that we make from time to time with the SEC, which are available on the SEC's website at sec.gov. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in any forward-looking statements. Except as required by law, we are under no obligation to update these forward-looking statements subsequent to the date of this press release, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance the overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important metrics used by management for financial and operational decision-making. We include these non-GAAP financial measures to present our financial performance using a management view and because we believe that these measures provide an additional comparison of our core financial performance over multiple periods with other companies in our industry.

Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.

Calculated Current Billings: We define calculated current billings, a non-GAAP financial measure, as total revenue recognized in a period plus the change in current deferred revenue in the corresponding period. We believe that calculated current billings is a key metric to measure our periodic performance. Given that most of our customers pay in advance (including multi-year contracts), but we generally recognize the related revenue ratably over time, we use calculated current billings to measure and monitor our ability to provide our business with the working capital generated by upfront payments from our customers. We believe that calculated current billings, which excludes deferred revenue for periods beyond twelve months in a customer’s contractual term, more closely correlates with annual contract value and that the variability in total billings, depending on the timing of large multi-year contracts and the preference for annual billing versus multi-year upfront billing, may distort growth in one period over another.

Free Cash Flow and Unlevered Free Cash Flow: We define free cash flow, a non-GAAP financial measure, as net cash provided by operating activities less purchases of property and equipment and capitalized software development costs. We believe free cash flow is an important liquidity measure of the cash that is available (if any), after purchases of property and equipment and capitalized software development costs, for investment in our business and to make acquisitions. We believe that free cash flow is useful as a liquidity measure because it measures our ability to generate or use cash. We define unlevered free cash flow as free cash flow plus cash paid for interest and other financing costs. We believe unlevered free cash flow is useful as a liquidity measure as it measures the cash that is available to invest in our business and meet our current debt obligations and future financing needs. However, given our debt obligations, non-cancelable commitments and other contractual obligations, unlevered free cash flow does not represent residual cash flow available for discretionary expenses.

Non-GAAP Income from Operations and Non-GAAP Operating Margin: We define these non-GAAP financial measures as their respective GAAP measures, excluding the effect of stock-based compensation, acquisition-related expenses, restructuring expenses, costs related to the intra-entity asset transfers resulting from the internal restructuring of legal entities, and amortization of acquired intangible assets. Acquisition-related expenses include transaction and integration expenses, as well as costs related to the intercompany transfer of acquired intellectual property. Restructuring expenses include non-ordinary course severance, employee related benefits, and other charges. We believe that the exclusion of these expenses provides for a useful comparison of our operating results to prior periods and to our peer companies, which commonly exclude restructuring expenses.

Non-GAAP Net Income and Non-GAAP Earnings Per Share: We define non-GAAP net income as GAAP net loss, excluding the effect of stock-based compensation, acquisition-related expenses, restructuring expenses and amortization of acquired intangible assets, including the applicable tax impacts. In addition, we exclude the tax impact and related costs of intra-entity asset transfers resulting from the internal restructuring of legal entities as well as deferred income tax benefits recognized in connection with acquisitions. We use non-GAAP net income to calculate non-GAAP earnings per share.

Non-GAAP Gross Profit and Non-GAAP Gross Margin: We define non-GAAP gross profit as GAAP gross profit, excluding the effect of stock-based compensation and amortization of acquired intangible assets. Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of revenue.

Non-GAAP Sales and Marketing Expense, Non-GAAP Research and Development Expense and Non-GAAP General and Administrative Expense: We define these non-GAAP measures as their respective GAAP measures, excluding stock-based compensation, acquisition-related expenses and costs related to intra-entity asset transfers resulting from the internal restructuring of legal entities.


TENABLE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
 Three Months Ended March 31,
(in thousands, except per share data) 2024   2023 
Revenue$215,961  $188,839 
Cost of revenue(1) 48,932   45,506 
Gross profit 167,029   143,333 
Operating expenses:   
Sales and marketing(1) 99,825   97,191 
Research and development(1) 43,727   38,183 
General and administrative(1) 31,018   27,115 
Restructuring 1,389    
Total operating expenses 175,959   162,489 
Loss from operations (8,930)  (19,156)
Interest income 5,624   5,095 
Interest expense (8,112)  (7,339)
Other expense, net (1,310)  (547)
Loss before income taxes (12,728)  (21,947)
Provision for income taxes 1,658   3,150 
Net loss$(14,386) $(25,097)
    
Net loss per share, basic and diluted$(0.12) $(0.22)
Weighted-average shares used to compute net loss per share, basic and diluted 117,542   113,791 

_______________

(1)        Includes stock-based compensation as follows:

 Three Months Ended March 31,
  2024  2023
Cost of revenue$2,982 $2,625
Sales and marketing 15,300  14,394
Research and development 11,161  8,865
General and administrative 10,276  8,233
Total stock-based compensation$39,719 $34,117


TENABLE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
 
 March 31,
2024
 December 31,
2023
(in thousands, except per share data)(unaudited)  
Assets   
Current assets:   
Cash and cash equivalents$259,977  $237,132 
Short-term investments 250,794   236,840 
Accounts receivable (net of allowance for doubtful accounts of $288 and $470 at March 31, 2024 and December 31, 2023, respectively) 156,804   220,060 
Deferred commissions 49,168   49,559 
Prepaid expenses and other current assets 66,013   61,882 
Total current assets 782,756   805,473 
Property and equipment, net 45,581   45,436 
Deferred commissions (net of current portion) 68,447   72,394 
Operating lease right-of-use assets 33,694   34,835 
Acquired intangible assets, net 102,349   107,017 
Goodwill 518,539   518,539 
Other assets 15,656   23,177 
Total assets$1,567,022  $1,606,871 
    
Liabilities and Stockholders’ Equity   
Current liabilities:   
Accounts payable and accrued expenses$17,667  $16,941 
Accrued compensation 43,547   66,492 
Deferred revenue 562,575   580,779 
Operating lease liabilities 5,985   5,971 
Other current liabilities 5,069   5,655 
Total current liabilities 634,843   675,838 
Deferred revenue (net of current portion) 160,133   169,718 
Term loan, net of issuance costs (net of current portion) 358,622   359,281 
Operating lease liabilities (net of current portion) 46,317   48,058 
Other liabilities 8,159   7,632 
Total liabilities 1,208,074   1,260,527 
    
Stockholders’ equity:   
Common stock (par value: $0.01; 500,000 shares authorized; 119,625 and 117,504 shares issued at March 31, 2024 and December 31, 2023, respectively) 1,196   1,175 
Additional paid-in capital 1,237,283   1,185,100 
Treasury stock (at cost: 882 and 356 shares at March 31, 2024 and December 31, 2023, respectively) (39,925)  (14,934)
Accumulated other comprehensive (loss) income (185)  38 
Accumulated deficit (839,421)  (825,035)
Total stockholders’ equity 358,948   346,344 
Total liabilities and stockholders’ equity$1,567,022  $1,606,871 


TENABLE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
 Three Months Ended March 31,
(in thousands) 2024   2023 
Cash flows from operating activities:   
Net loss$(14,386) $(25,097)
Adjustments to reconcile net loss to net cash provided by operating activities:  
Depreciation and amortization 8,232   6,365 
Stock-based compensation 39,719   34,117 
Net accretion of discounts and amortization of premiums on short-term investments (2,284)  (1,553)
Amortization of debt issuance costs 329   307 
Other 1,611   (310)
Changes in operating assets and liabilities:   
Accounts receivable 63,437   64,439 
Prepaid expenses and other assets 5,216   (2,776)
Accounts payable, accrued expenses and accrued compensation (22,017)  (12,665)
Deferred revenue (27,789)  (22,534)
Other current and noncurrent liabilities (1,742)  (1,547)
Net cash provided by operating activities 50,326   38,746 
    
Cash flows from investing activities:   
Purchases of property and equipment (665)  (387)
Capitalized software development costs (2,532)  (1,023)
Purchases of short-term investments (77,465)  (48,749)
Sales and maturities of short-term investments 65,570   61,299 
Proceeds from other investments 3,512    
Net cash (used in) provided by investing activities (11,580)  11,140 
    
Cash flows from financing activities:   
Payments on term loan (938)  (938)
Proceeds from stock issued in connection with the employee stock purchase plan 9,884   9,914 
Proceeds from the exercise of stock options 1,874   942 
Purchase of treasury stock (24,991)   
Other financing activities    (128)
Net cash (used in) provided by financing activities (14,171)  9,790 
Effect of exchange rate changes on cash and cash equivalents and restricted cash (1,730)  (108)
Net increase in cash and cash equivalents and restricted cash 22,845   59,568 
Cash and cash equivalents and restricted cash at beginning of period 237,132   300,866 
Cash and cash equivalents and restricted cash at end of period$259,977  $360,434 


TENABLE HOLDINGS, INC.
REVENUE COMPONENTS AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(unaudited)

RevenueThree Months Ended March 31,
(in thousands) 2024  2023
Subscription revenue$197,635 $171,098
Perpetual license and maintenance revenue 12,156  12,181
Professional services and other revenue 6,170  5,560
Revenue(1)$215,961 $188,839

_______________

(1)        Recurring revenue, which includes revenue from subscription arrangements for software (both recognized ratably over the subscription term and upon delivery) and cloud-based solutions and maintenance associated with perpetual licenses, represented 96% and 95% of revenue in the three months ended March 31, 2024 and 2023, respectively.

Calculated Current BillingsThree Months Ended March 31,
(in thousands) 2024   2023 
Revenue$215,961  $188,839 
Deferred revenue (current), end of period 562,575   490,076 
Deferred revenue (current), beginning of period (580,779)  (502,115)
Calculated current billings$197,757  $176,800 


Remaining Performance ObligationsMarch 31,
(in thousands) 2024  2023
Remaining performance obligations, short-term$572,851 $499,106
Remaining performance obligations, long-term 169,560  155,588
Remaining performance obligations$742,411 $654,694


Free Cash Flow and Unlevered Free Cash FlowThree Months Ended March 31,
(in thousands) 2024   2023 
Net cash provided by operating activities$50,326  $38,746 
Purchases of property and equipment (665)  (387)
Capitalized software development costs (2,532)  (1,023)
Free cash flow(1) 47,129   37,336 
Cash paid for interest and other financing costs 7,611   6,820 
Unlevered free cash flow(1)$54,740  $44,156 

________________

(1)        Free cash flow and unlevered free cash flow for the periods presented were impacted by:

 Three Months Ended March 31,
(in thousands) 2024   2023 
Employee stock purchase plan activity$(6,332) $(4,690)
Acquisition-related expenses (466)  (238)
Restructuring (3,822)   


Non-GAAP Income from Operations and Non-GAAP Operating MarginThree Months Ended March 31,
(dollars in thousands) 2024   2023 
Loss from operations$(8,930) $(19,156)
Stock-based compensation 39,719   34,117 
Acquisition-related expenses 161   100 
Restructuring 1,389    
Amortization of acquired intangible assets 4,669   3,080 
Non-GAAP income from operations$37,008  $18,141 
Operating margin(4)%  (10)% 
Non-GAAP operating margin 17%  10%


Non-GAAP Net Income and Non-GAAP Earnings Per ShareThree Months Ended March 31,
(in thousands, except per share data) 2024   2023 
Net loss$(14,386) $(25,097)
Stock-based compensation 39,719   34,117 
Tax impact of stock-based compensation(1) (1,077)  917 
Acquisition-related expenses(2) 161   100 
Restructuring(2) 1,389    
Amortization of acquired intangible assets(3) 4,669   3,080 
Tax impact of acquisitions (35)  (54)
Non-GAAP net income$30,440  $13,063 
    
Net loss per share, diluted$(0.12) $(0.22)
Stock-based compensation 0.34   0.30 
Tax impact of stock-based compensation(1) (0.01)   
Acquisition-related expenses(2)     
Restructuring(2) 0.01    
Amortization of acquired intangible assets(3) 0.04   0.03 
Tax impact of acquisitions     
Adjustment to diluted earnings per share(4) (0.01)   
Non-GAAP earnings per share, diluted$0.25  $0.11 
    
Weighted-average shares used to compute GAAP net loss per share, diluted 117,542   113,791 
    
Weighted-average shares used to compute non-GAAP earnings per share, diluted 123,266   119,264 

________________

(1)        The tax impact of stock-based compensation is based on the tax treatment for the applicable tax jurisdictions.
(2)        The tax impact of acquisition-related expenses and restructuring expenses are not material.
(3)        The tax impact of the amortization of acquired intangible assets is included in the tax impact of acquisitions.
(4)        An adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.

Non-GAAP Gross Profit and Non-GAAP Gross MarginThree Months Ended March 31,
(dollars in thousands) 2024   2023 
Gross profit$167,029  $143,333 
Stock-based compensation 2,982   2,625 
Amortization of acquired intangible assets 4,669   3,080 
Non-GAAP gross profit$174,680  $149,038 
Gross margin 77%  76%
Non-GAAP gross margin 81%  79%


Non-GAAP Sales and Marketing ExpenseThree Months Ended March 31,
(dollars in thousands) 2024   2023 
Sales and marketing expense$99,825  $97,191 
Less: Stock-based compensation 15,300   14,394 
Non-GAAP sales and marketing expense$84,525  $82,797 
Non-GAAP sales and marketing expense % of revenue 39%  44%


Non-GAAP Research and Development ExpenseThree Months Ended March 31,
(dollars in thousands) 2024   2023 
Research and development expense$43,727  $38,183 
Less: Stock-based compensation 11,161   8,865 
Less: Acquisition-related expenses (20)   
Non-GAAP research and development expense$32,586  $29,318 
Non-GAAP research and development expense % of revenue 15%  16%


Non-GAAP General and Administrative ExpenseThree Months Ended March 31,
(dollars in thousands) 2024   2023 
General and administrative expense$31,018  $27,115 
Less: Stock-based compensation 10,276   8,233 
Less: Acquisition-related expenses 181   100 
Non-GAAP general and administrative expense$20,561  $18,782 
Non-GAAP general and administrative expense % of revenue 10%  10%

The following adjustments to reconcile forecasted non-GAAP income from operations, non-GAAP net income, non-GAAP earnings per share, free cash flow and unlevered free cash flow are subject to a number of uncertainties and assumptions, each of which are inherently difficult to forecast. As a result, actual adjustments and GAAP results may differ materially.

Forecasted Non-GAAP Income from OperationsThree Months Ending
June 30, 2024
 Year Ending
December 31, 2024
(in millions)Low High Low High
Forecasted loss from operations$(19.1) $(17.1) $(36.3) $(31.3)
Forecasted stock-based compensation 41.3   41.3   166.9   166.9 
Forecasted acquisition-related expenses       0.2   0.2 
Forecasted restructuring 7.1   7.1   8.5   8.5 
Forecasted amortization of acquired intangible assets 4.7   4.7   18.7   18.7 
Forecasted non-GAAP income from operations$34.0  $36.0  $158.0  $163.0 


Forecasted Non-GAAP Net Income and Non-GAAP Earnings Per ShareThree Months Ending
June 30, 2024
 Year Ending
December 31, 2024
(in millions, except per share data)Low High Low High
Forecasted net loss(1)$(26.1) $(24.1) $(62.5) $(57.5)
Forecasted stock-based compensation 41.3   41.3   166.9   166.9 
Forecasted tax impact of stock-based compensation 1.1   1.1   3.4   3.4 
Forecasted acquisition-related expenses       0.2   0.2 
Forecasted restructuring 7.1   7.1   8.5   8.5 
Forecasted amortization of acquired intangible assets 4.7   4.7   18.7   18.7 
Forecasted tax impact of acquisitions (0.1)  (0.1)  (0.2)  (0.2)
Forecasted non-GAAP net income$28.0  $30.0  $135.0  $140.0 
        
Forecasted net loss per share, diluted(1)$(0.22) $(0.20) $(0.53) $(0.48)
Forecasted stock-based compensation 0.35   0.35   1.40   1.40 
Forecasted tax impact of stock-based compensation 0.01   0.01   0.03   0.03 
Forecasted acquisition-related expenses           
Forecasted restructuring 0.06   0.06   0.07   0.07 
Forecasted amortization of acquired intangible assets 0.04   0.04   0.16   0.16 
Forecasted tax impact of acquisitions           
Adjustment to diluted earnings per share(2) (0.02)  (0.02)  (0.05)  (0.06)
Forecasted non-GAAP earnings per share, diluted$0.22  $0.24  $1.08  $1.12 
        
Forecasted weighted-average shares used to compute GAAP net loss per share, diluted 119.0   119.0   119.0   119.0 
Forecasted weighted-average shares used to compute non-GAAP earnings per share, diluted 124.5   124.5   125.0   125.0 

________________
(1)        The forecasted GAAP net loss assumes income tax expense of $4.1 million and $15.5 million in the three months ending June 30, 2024 and year ending December 31, 2024, respectively.

(2)        Adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.

Forecasted Free Cash Flow and Unlevered Free Cash FlowYear Ending
December 31, 2024
(in millions)Low High
Forecasted net cash provided by operating activities$202.0  $212.0 
Forecasted purchases of property and equipment (7.3)  (7.3)
Forecasted capitalized software development costs (6.0)  (6.0)
Forecasted free cash flow 188.7   198.7 
Forecasted cash paid for interest and other financing costs 31.3   31.3 
Forecasted unlevered free cash flow$220.0  $230.0