The market seems to be reacting positively to Tesserent’s latest business update
The post Tesserent (ASX:TNT) share price soars after record-breaking quarter appeared first on The Motley Fool Australia. –
For the quarter ended 30 June 2021, Tesserent reported record earnings before interest, taxes, depreciation, and amortisation (EBIDTA), revenue, and customer receipts.
Right now, the Tesserent share price is 29.5 cents, 5.36% higher than its previous closing price.
Let’s take a closer look at what the cyber security provider was up to over the fourth quarter of the 2021 financial year.
What’s driving the Tesserent share price?
The Tesserent share price is gaining today after the company reported an EBITDA of $3.8 million for the quarter just been. That represents a 125.5% quarter-on-quarter increase.
Its turnover was $38.2 million, with $20.8 million of that having occured during June.
Tesserent reported it received $33.5 million worth of customer receipts over the quarter – 53% more than it did the previous quarter.
All this combined to see the company report a positive cash flow of $5.3 million.
Tesserent stated it expects its strong performance to continue into financial year 2022. The company had $14.86 million of cash in the bank at the end of June.
The company’s intent to grow through acquisitions and investments appears to be working, despite the Tesserent share price not always reacting favourably.
In April, Tesserenet acquired Secure Logic. Then, it invested strategically in TrustGrid and AttackBound.
Additionally, the company launched the Tesserent Academy over the fourth quarter. The academy works to address skill shortages in the cyber security industry.
Tesserent share price snapshot
Despite today’s uptick, Tesserent hasn’t been doing too well on the ASX in 2021.
It has fallen 15% year to date. However, it’s currently 40% higher than it was at this time last year.
The company has a market capitalisation of around $299 million, with approximately 1 billion shares outstanding.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.