The Tesserent share price is soaring higher today, up 18% after the cyber security company released an update on new appointments and growth.
The post Why the Tesserent (ASX:TNT) share price has surged 18% today appeared first on Motley Fool Australia. –
The Tesserent Ltd (ASX: TNT) share price is flying higher today, up 18%. This comes after the company’s ASX announcement earlier today on two new key appointments along with organic growth from its acquisition synergies.
Tesserent shareholders have had much to celebrate this year, with the share price leaping higher in July and August following several new strategic acquisitions.
Which is not to say shareholders haven’t suffered through white-knuckle moments. During the COVID-19 market panic, Tesserent’s share price plunged 73% from 18 February through to 23 March.
Since that low, the share price has rocketed 750% higher, putting it up 538% year-to-date. For comparison of just how remarkable that performance has been, the All Ordinaries Index (ASX: XAO) is down 10% over that same time frame.
What does Tesserent do?
Tesserent provides cyber security and networking solutions to businesses and government institutions across Australia. Its Cyber 360 strategy offers integrated solutions for 24/7 monitoring, protection and identification of cyber security threats.
The company employs more than 220 security engineers to help defend their clients’ digital assets. Following the acquisitions of several other cyber security businesses, Tesserent is now the largest dedicated cyber security company trading on the ASX.
What did Tesserent announce to the ASX today?
In this morning’s announcement, Tesserent revealed the appointment of 2 new key executives.
Peter Fearns will start in his role as the company’s new chief financial officer (CFO) in November. The company also announced the recent appointment of Nathan Knox as its head of synergies. Knox will focus on coordinating the company’s approach to help drive cross-selling opportunities.
In its sales and synergies update, Tesserent also stated it had won new federal, state, and local government contracts exceeding $6 million in the September quarter. Additionally, it retained 100% of its existing federal government clients, seeing the majority of contracts extended through 2020 and beyond.
It also reported significant enterprise contract wins in the month of September with financial services, insurance, advertising and media business, worth more than $4 million.
Continued growth from Tesserent’s annual recurring revenues streams from locked-in annuity contracts now exceed $30 million annually.
After the last few months of phenomenal growth, Tesserent’s share price will be one to watch.
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.