Could this business update drive the Tesserent (ASX:TNT) share price higher?

The Tesserent Ltd (ASX: TNT) share price has slumped 33% year-to-date. Could this business update put its share price back on track?
The post Could this business update drive the Tesserent (ASX:TNT) share price higher? appeared first on The Motley Fool Australia. –

A hand outstretched with questionmarks floating above it, indicating uncertainty about a ahreprice

As a leading cybersecurity stock, the recent Tesserent Ltd (ASX: TNT) share price performance has been far from inspiring. Its shares are down 33% year-to-date and almost 50% from its all-time record high of 44 cents. 

What might drive the Tesserent share price today 

On Tuesday, Tesserent announced that it will be expanding its business to make strategic investments in proprietary IP-based products and companies, and launching a cyber academy to address the industry’s skill shortages. 

Investors can view the new organisational structure as three separate business divisions. 

Firstly, Tesserent Cyber represents the ‘old’ Tesserent and its existing and core consulting, product and services business. 

Tesserent Innovation is a new division focusing on developing and investing in new cyber technologies. The objective of Tesserent Innovation is to enable high growth potential cyber IP businesses to leverage the company’s existing customer base, deep skill sets, geographic coverage, and funding ability. 

Finally, Tesserent is launching the Academy to help drive an industry-wide capability uplift and reduce the skill shortage gap.

Besides the new business divisions, the business update did not contain any market sensitive news or financial updates. 

Tesserent reiterates its growth narrative and future focus 

The update reiterates the company’s narrative of exponential growth. In addition, it also reaffirmed its ambition of a $150 million turnover run rate by 30 June 2021. 

The company has taken significant strides towards profitability, from a negative earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.7 million and $679,000 in 2Q20 and 3Q20, to $405,000 and $1.4 million in 1Q21 and 2Q21. 

In addition to Tesserent Innovation and Academy, the company said that it will continue to drive its acquisition strategy. The intention of this is to expand on Tesserent Cyber’s capabilities and market share. This will translate to increasing shareholder value through incremental earnings growth.

While the announcement sounds very positive for the Tesserent business moving forward, its share price is still down some 30% for the year. 

The Tesserent share price opened 6% higher to 25 cents on Tuesday. However, it still needs to rise another 35% to breakeven for the year. 


Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

No tickers found. You need to add tickers and save as draft before fetching disclosure

The post Could this business update drive the Tesserent (ASX:TNT) share price higher? appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!