Tesserent starts FY2021 strong with bumper Q1

Security services provider Tesserent has kicked off FY2021 with a strong first quarter thanks to its recent acquisition spree and contract wins.

The ASX-listed company posted $15.1 million in revenue for the quarter ended 30 September 2020, up 42.5 percent from Q4 2020. It includes contributions from Seer Security, Airloom and Ludus. Tesserent has since acquired Sydney’s iQ3 for $17.2 million.

Tesserent also raked in $405,000 in profits, up from $17,000 the previous quarter.

The security cyber specialist also increased its recurring revenue to more than $30 million, with multi-year managed security services and security operations centre contracts locked in.

In an ASX announcement, Tesserent said the growth trend was expected to continue for the foreseeable future.

“[The company], through its Cyber 360 strategy, is focused on continuing to build out a one-stop-shop that provides a complete end-to-end cybersecurity solution for its clients,” the announcement read.

“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.”

Looking ahead, Tesserent aims to grow its customer base, integrate recent acquisitions, capture market share in the government, critical infrastructure and finance sectors.

In addition, the company intends to pursue more acquisitions, expand its product offering, and expand the business internationally.

“The current geopolitical climate, together with the COVID-19 pandemic and significant new technological innovation continues to fuel State-based cyberattacks, a shift to remote and mobile workforces and pervasive internet connectivity across digital platforms and devices," the announcement read.

"These factors are driving the growing requirement for government and enterprise cybersecurity solutions with an increased focus on protecting and securing digital assets.

“Accordingly, Tesserent will continue to evolve its core cybersecurity business with a focus on establishing an IoT/digital asset management and cybersecurity platform; a significant and growing component in the provision of a holistic, end-to-end cybersecurity solution.”