The Tesserent Ltd (ASX: TNT) share price surged by 15% today after the cybersecurity provider released its half-year results.
The company reported increases in earnings and revenue, alongside the induction of three acquired businesses.
At the market close, the Tesserent share price was up 15.38% at 15 cents. To compare, the S&P/ASX 200 Information Technology Index (ASX: XIJ) closed up 8.14% today.
So what did the IT company report to make its share price skyrocket?
Image source: Getty Images
Tesserent share price surges on rise in earnings, revenue
The Tesserent share price surged today on the back of the half-year results for the period ending 31 December 2021. Key takeouts included (against the prior corresponding period):
- Normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) up 102% to $5.6 million
- Turnover up 72% to $62.9 million
- Statutory revenue up 52% to $43.9 million
All in all, the company's annual recurring revenue increased by 44%, though no dividend was declared for the half year.
What else happened?
During the half, Tesserent underwent a branding and integration facelift — remodelling the company as "a single customer-facing brand".
Further, the IT company completed the acquisitions of three businesses — Loop Secure, Clarinet, and Pearson Corporation.
In order to fund these takeovers and "strengthen the balance sheet", the company successfully completed a $25 million capital raise during the period.
This has led to organic growth and a higher turnover, Tesserent said.
What did management say?
Commenting on the results that boosted the Tesserent share price today, executive chairman Geoff Lord:
The management team successfully executed its brand and business unit integration strategy – strengthening Tesserent's commercial position in the market by enabling the Group to enhance its value proposition to existing and new clients and improve gross margins and net margins reported across the business.
Given the significant events that are occurring in eastern Europe, we are also mindful of the heightened level of cyber security risk that exists for Tesserent clients. We note that Tesserent has targeted capabilities to address these risks in its Cyber Enhanced Situational Awareness and Response (CESAR) capabilities.
Tesserent share price snapshot
In the last 12 months, the Tesserent share price has dropped by 54%. It saw a 52-week high price of 33 cents at the end of July, after releasing a quarterly report for the period ending 30 June 2021. However, Tesserent shares hit a 52-week low of 13 cents just yesterday.
Tesserent shares have fallen 12% this year to date and 6% over the past month.
The company has a market capitalisation of $163.56 million.
