Special Report: Senetas (ASX:SEN) one of precious few ASX-listed cybersecurity organisations, has recently unveiled its results for the first half of the 2024 financial year, showcasing robust growth amidst a global need to focus on embedding cybersecurity security into government operations and across supply chains.

The company has expanded its services to include secure remote-work file-sharing collaboration software, the anti-malware solution Votiro, whilst remaining a world leader in cutting-edge encryption solutions. The company has demonstrated strong progress and signals a bright outlook for the remainder of the year

During the half-year ending December 31, 2023, Senetas witnessed a significant increase in third-party sales of its products and services, surging by over 40%. This growth is a testament to the company’s commitment to meet the evolving cybersecurity needs of global commercial enterprises and Defence agencies. The sales pipeline for Senetas products continued to expand, recording a 34% increase compared to the same period in the previous year, further emphasising the growing demand for cybersecurity solutions post-pandemic.

Votiro, a subsidiary of Senetas specialising in anti-malware software, also reported substantial achievements with an annual recurring revenue (ARR) of US$8.5 million, marking an impressive increase of over 75% from December 2022.

The financial outcomes from the first half of the year reflect Senetas’ long-term strategic initiatives starting to bear fruit. Despite a challenging global environment, marked by industry-wide electronic component shortages that impacted technology projects and order deliveries, Senetas demonstrated resilience. The easing of these shortages has heralded a strong return to growth in completed orders, particularly noted in the 40% increase in third-party sales and a 46% rise in the number of hardware units shipped by Thales, a key distribution and support partner.

Looking ahead, Senetas’s CEO, Andrew Wilson, expressed optimism about the company’s trajectory:

“With the easing of electronic component shortages, Senetas is poised to capitalise on strong global demand for its products, as evidenced by the remarkable growth in third-party sales and our future sales pipeline. The company expects to continue this momentum through 2024, with both cash flow and third-party sales anticipated to surpass the previous financial year’s figures.”

Furthermore, the recent acquisition of Imperva by Thales creates an exciting opportunity for Senetas. The merger positions Thales as the fifth-largest cybersecurity company globally, with over US$1.5 billion in revenue. This strategic move is expected to significantly expand Thales’s access to the cybersecurity market, presenting a promising medium-term growth opportunity for Senetas, given the complementary nature of its product portfolio with Imperva’s.

Senetas’ performance in the first half of the 2024 financial year is testament to its strategy of targeting the much larger cybersecurity market of anti-malware, whilst still remaining a significant player in the encryption market. Senetas may be small in comparison to industry titans overseas, but with a focus on strategic partnerships and innovation to diversify its offering and open up new markets, Senetas is well-equipped to navigate the complexities of the cybersecurity industry and power ahead.

 

This article was developed in collaboration with Senetas, a Stockhead advertiser at the time of publishing.  

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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