Cybersecurity stock Tesserent (ASX: TNT) has announced positive annual revenue forecasts and shareholders have sent it up nearly 12 per cent.
It estimates $14 million annual revenue this year thanks to a recent acquisition and its total firewall sales in July 2019 exceeded all of the previous financial year.
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Cybersecurity is becoming a threat firms are now taking action against, instead of hoping it does not happen. Consequently by 2026, global cybersecurity revenues are forecast to hit $6 billion.
Tesserent reminded shareholders of these forecasts and its consequential ambitions. It said it wants to become “Australia’s leading end-to-end cybersecurity business”.
Among its products is Cyber360 which is now live and provides end-to-end cyber protection.
Tesserent also said it expected another acquisition this quarter. It declared its latest buy, Rivium, has been “accretive from day one”, having contributed $4.4 million revenue for FY 2019.
The firm has not yet reached profitability but managing director Julian Challingsworth said the goal was in sight.
“Recent key initiatives designed to drive sales and market share have assisted Tesserent to move towards its goal of sustainable profitability,” he said.
“This is a key period for us as we expand into high-growth markets and launch our new threat hunting products. We are rapidly positioning ourselves as a market leader in IT and cyber security and look forward to growing sales rapidly.”
In other ASX small cap tech news today…
Elmo Software (ASX: ELO) is the latest tech stock to declare a record quarterly. The stock is actually profitable. Cash receipts for the quarter were $15.5 million and $45.1 million for the entire year. It will have $1.2 million more at the end of this quarter than it did at the last.
CEO Danny Lessam consequently declared: “Our growth initiatives and convergent solution are resonating with the market.” He noted growth was picking up in the lower-mid market (50 to 200 employee organisations) and credited the company’s successful quarter on this.
Remember the deal that was the catalyst of Tinybeans’ (ASX: TNY) 300 per cent gain in 2019? It was with Lego and Lego is that happy with the marketing campaign, another will be run. A second advertising campaign with Tinybeans will run with Lego advertising DUPLO products to toddlers and their families on the platform. The campaign will bring at least $100,000 in revenue.
CEO Eddie Geller “couldn’t be more pleased that Lego has already seen such positive results that they are increasing their investment with a second campaign”.
Fintech Chain (ASX: FTC) has also expanded a deal. The agreement with Shaanxi Rural Credit Union to roll out products now covers the entire province. It is the sixth contract it has secured in less than four months. The company said the deal is “another success story”.
Family Zone (ASX: FZO) has announced its latest partnership. It is collaborating with NASDAQ-listed cybersecurity firm Check Point Software Technologies. One integrated solution using the two companies’ products will be the outcome for customers. Both companies’ executives noted the importance of cyber safety and security in schools and their firms’ partnership would help both.
Fintech Wisr (ASX: WZR) has expanded its client range by signing a three-year deal with SmartGroup (ASX: SIQ) to distribute Wisr’s product range to its clients. SmartGroup has 4,000 employee clients with over 1 million employees and over 340,000 salary packaging customers. Its CEO Deven Bellimoria said he’s been impressed by Wisr’s “enthusiastic and proactive approach and look forward to working with them over the coming years”.
The endorsement sent Wisr’s shares up 6 per cent this morning.