The Tesserent Ltd (ASX: TNT) share price is on a rollercoaster ride today after the internet security services company provided a trading update for the year to date.
After dipping at the open, the Tesserent share price shot up 5% mid-morning before sinking back to its previous closing price of 20 cents apiece at the time of writing.
How is Tesserent performing in 2021?
In today's release, Tesserent advised it has achieved significant growth for the year-to-date period ending October 2021. This has led to an increase in turnover of 67% when compared to the prior corresponding timeframe.
Divisional earnings before interest, tax, depreciation and amortisation (EBITDA) growth jumped 150% over FY20, driven by targeted acquisitions.
In addition, Tesserent recorded a surge in annual recurring revenue (ARR), up 42% to October 2021. In the prior year, ARR grew at a rate of 30% in 2020.
The company declared a current cash position of $19.8 million as at 15 November. Net debt stood at $15.2 million.
Notably, Tesserent key customers include 43 companies within the ASX 100 list.
Management shuffle
Furthermore, the company has reshuffled its senior management team to align with its new go-to-market strategy.
According to the release, Kurt Hansen will take the reins as CEO, focusing on maximising organic growth and steering the business in the right direction.
Geoff Lord takes on the role of executive chair, and Julian Challingsworth will step down from the board to start his new position as chair of Tesserent Innovation.
Chief financial officer James Jones will assume broader responsibilities across mergers and acquisitions and investor relations. The company said Mr Jones brings a wealth of experience from his time served at leading accounting firms, Deloitte, and Ernst & Young.
About the Tesserent share price
The Tesserent share price has failed to take off in 2021, down 40% year to date, and has fallen around 45% over the past 12 months.
Tesserent presides a market capitalisation of roughly $242 million and has approximately 1.21 billion shares on its registry.
