The Tesserent Ltd (ASX: TNT) share price gained 28% today, while also smashing its 52-week high in the process. The Tesserent share price was sent flying on the news the company has achieved its financial objectives for the year and also secured a debt facility.
Image source: Getty Images
What does Tesserent do?
Tesserent provides internet security to a wide range of Australian and international customers, via services such as perimeter protection, internal monitoring and alerts, secure internet connectivity and co-location. Its customers include education providers, corporate enterprises, and government organisations.
The company's flagship Cyber 360 strategy delivers a comprehensive security service including identification, protection and 24/7 monitoring against cyber security threats. According to Tesserent, it is Australia's largest listed dedicated cyber security company.
Trading update
The Tesserent share price skyrocketed today following news the company had achieved its previously announced FY20 financial objectives and locked in an additional $10 million in funding.
A key highlight for the company is the fact its $40 million revenue run rate was achieved. Furthermore, Tesserent announced that it is likely to become earnings before interest, tax, depreciation and amortisation (EBITDA) and cash flow positive in June. These metrics are subject to audit, with the company providing a comprehensive business update and quarterly update later this month.
Tesserent has also managed to secure an additional $10 million debt facility. The agreement was with Tesserent's existing debt provider, Pure Asset Management. The funds will be drawn as required to support acquisitions by the company.
Chair of Tesserent Geoff Lord commented:
[W]e're extremely pleased to be working with PURE Asset Management who continue to support the firm's vision and strategy. This new facility provides the funding cornerstone to continue to drive the Company's acquisition strategy with minimal dilutionary impact on our existing shareholders.
About the Tesserent share price
The Tesserent share price has surged higher so far this year, gaining upwards of 150%. Tesserent shares have been pushed higher following the successful acquisitions of Pure Security, Rivium and North in the past year.
Cyber security is a hot topic following the recent cyber attacks on the government, with the news that cyber security is getting a $1.35 billion spending boost no doubt adding to the Tesserent share price's impressive run.
