Tesserent jumps on record quarter

Australian cybersecurity provider Tesserent surged on Thursday after it provided its cash report and business update for the quarter ended 30 June 2021.

Tesserent confirmed that it exceeded all set financial objectives for the fourth quarter of FY21, ultimately achieving record earning, turnover and customer receipts growth. It built on its quarter on quarter operating profitability, increasing operational EBITDA to $3.8 million for the period, up 125.5% from the previous quarter’s $1.7 million.

With $14.9 million in available cash at the end of June, and with strong full-year earnings performance expected to continue, Tesserent highlighted that it is in a healthy financial position heading into FY22.

Record quarterly turnover of $38.2 million was achieved in the fourth quarter, with record monthly turnover of $20.8 million achieved in the month of June alone. This helped the company generate record quarterly customer receipts of $33.5 million, up 53% on the third quarter.

Tesserent also announced record cash flow positivity for the period, achieving $5.3 million in positive cash flow from operations, a growth trend that it expects to continue for the foreseeable future.

After achieving record growth, driven by strong seasonal financial year-end sales, Tesserent said it is well placed to enter FY22 with a continuing focus on organic growth, cross-selling opportunities and strategic acquisitions where they add to the company’s Cyber 360 vision.

Strategic acquisitions and investments remain a cornerstone of the company’s growth strategy, where quality cybersecurity assets are complementary to the Cyber 360 strategy and are incrementally Earnings Per Share accretive. With this in mind, the company completed the acquisitions of Secure Logic in April 2021, along with strategic investments into TrustGrid (June 2021) and AttackBound (June 2021) with a further investment into biometric security firm Daltrey completed in July 2021. With the investment into Daltrey, Tesserent significantly expanded its Converged Security offering with joint venture partner Optic Security across Australia and New Zealand.