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Why the WhiteHawk (ASX:WHK) share price is crashing 8% lower

The WhiteHawk share price dropped 8% today as the company released its final report. We take a closer look.
The post Why the WhiteHawk (ASX:WHK) share price is crashing 8% lower appeared first on The Motley Fool Australia. –

hawk, watch

The WhiteHawk Ltd (ASX: WHK) share price crashed lower today as the company announced its preliminary final report.

Shares in the online cybersecurity small-cap were down 7.69%, trading at 30 cents at market close.

Why is the WhiteHawk share price crashing lower?

Shares in the company were trading lower today amid the ASX market-wide sell-off. The fall in WhiteHawk share price may also have been triggered by the company’s report for the year ended 31 December 2020.

During the year, WhiteHawk invoiced for US$2.1 million, recognising US$1.9 million revenue for 2020. This was up 83.5% on the company’s revenue for 2019. However, the increase was not enough to stop the company from posting a loss of US$1.81 million, down 34.2% on the previous corresponding period.

During the 2020 calendar year, WhiteHawk also executed a number of important contracts. Notably with the United States Department of Homeland Security for US1.5 to $1.8 million, starting in October last year.

Furthermore, the company continued its transition to produce a cybersecurity exchange as a tailorable platform as a service (PaaS).  On this front, the company formed an initial partnership with a global insurance group and requested a quote from a US manufacturer association.

WhiteHawk finished 2020 with a cash balance of $2.4 million without any debt.

Outlook

Looking ahead, the company stated that it was strategically positioned for continued growth in 2021.

WhiteHawk is working on growing revenue through two primary paths.

As mentioned, PaaS enables users to manage cyber threats. The other stream will come from the company’s embedded SaaS offering. This aims to prevent financial fraud, identity theft and mobile device security among other things.

On the sales front, the company claims to have 40 ongoing engagements in the pipeline, of which 5 to 10 should be executed this year.

About the WhiteHawk share price

WhiteHawk recently underwent the due diligence to become an ESG (environment, social, governance) registered company. This is a new standard in measuring the sustainability and ethical impact that a company makes.

The WhiteHawk share price has performed well in the last year, gaining 408%.

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Motley Fool contributor Daniel Ewing 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.

The post Why the WhiteHawk (ASX:WHK) share price is crashing 8% lower appeared first on The Motley Fool Australia.

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