- Cybersecurity company Tesserent (TNT) has posted a significant spike in half-year revenue following a number of acquisitions last year
- For the six months ending December 31, 2020, statutory revenue grew 444 per cent from $5.3 million to $28.8 million
- However, net loss for the period also grew from $3.7 million to almost $6 million
- The company is now looking to improve its performance by focussing on high-margin annuity-based income and the inclusion of intellectual property
- Tesserent is up 12.24 per cent to $0.28 per share
Cybersecurity company Tesserent (TNT) has posted a significant spike in half-year revenue following a number of acquisitions last year.
For the six months ending December 31, 2020, statutory revenue soared 444 per cent from $5.3 million to $28.8 million, while operational EBITDA grew to $2.9 million compared to a loss of $1.6 million.
Tesserent said the results represent “transformational business growth”, which was driven by the acquisitions of Seer Security, Airloom, Ludus Cybersecurity, iQ3 and Lateral Security NZ — all of which were completed since August last year.
Despite the strong performance, Tesserent reported an increase in net loss for the period from $3.7 million to almost $6 million.
“Whilst the company’s comparative [year-over-year] revenue and earnings is strong, the [first half of financial year 2021] statutory results are still backward-looking and are not a current reflection of the company’s current or go-forward financial position,” the company said this morning.
Tesserent argued that, as a result of the acquisitions, significant one-off costs were incurred that were not offset by the benefit of full half-year contributions from those businesses.
Looking ahead, the company said it will continue to focus on establishing a one-stop-shop that provides a complete cybersecurity solution for its clients.
“A primary objective is to maximise shareholder value by increasing earnings margins through the growth of high-margin annuity-based income and the inclusion of proprietary intellectual property in its solutions,” this morning’s statement continued.
This is expected to include delivering the company’s Cyber 360 capabilities to more Australian organisations, further integrating its acquisitions, gaining additional market share in the government, critical infrastructure and finance sectors. The company is also exploring various expansion opportunities across the U.S., the U.K., New Zealand and Canada.
Tesserent is up 12.24 per cent to $0.28 per share at 10:56am AEDT.