Tesserent's Julian Challingsworth
Acquisitions and organisational changes saw publicly-listed cybersecurity outfit Tesserent incur significant upfront one-off costs, further deepening its statutory net loss to $7.8 million for FY20, according to the company's preliminary unaudited financials for the year ending June 30.
Revenue from ordinary activities within the company’s core business (TNT SOC, Rivium, Pure Security and North) grew 291 per cent to $20.57 million, with Tesserent indicating its ambition to achieve gross revenue run-rate of $100 million by December.
Earnings before tax (EBITDA) within its existing core business was $4.7 million in the red, but the company indicated its fourth quarter earnings were sitting at a modest $17,700. indicating a continuing trend of growing profitability for FY21.
During the past year, Tesserent has been on an acquisition spree adding Seer Security, Airloom and Ludus Cybersecurity to its ranks.
During FY20, Tesserent noted its first cross-sales achievements and the rollout of a single finance platform using Oracle NetSuite across the group.
In a statement to shareholders, Tesserent CEO Julian Challingsworth highlighted some of its important goals for FY21, including delivering its Cyber 360 capabilities to more organisations, completing phase two of its acquisitions and integration work to maximise efficiencies.
Challingsworth will also focus on capturing market share in three key areas such as government, critical infrastructure, and banking and finance, as well as build out high-value recurring annuity revenue streams, and expand its IP to drive high-margin product and service offerings.
"FY20 saw Tesserent become Australia's number one ASX listed cybersecurity firm primarily as a result of several substantial acquisitions, a strategy led by TNT's new chairman, Geoff Lord," he said.
"Since then, several important organisational changes and strategic acquisitions have led to exponential business growth, creating shareholder value in a number of key areas including significant uplift in market capitalisation and share price."
"As a result of these acquisitions and organisational changes, significant upfront, one-off costs were incurred without the full-year financial benefits being recognised in the FY20 statutory accounts. The FY20 statutory accounts are therefore backward-looking and are not a current reflection of the company's current or go-forward financial position."
