Tesserent has doubled its revenue, and almost doubled its client base, in less than 2 years - based on Article in 2015 below analysing Tesserent pre IPO. Not a bad effort....eventually Mr Market will see the value in Tesserent.
"Tesserent has more than 190 clients in 11 countries and achieved total revenue of $3.7 million during the 2015 financial year."
In 2013, Scandinavia’s largest independent research organisation, SINTEF, reported that 90 per cent of today’s data has been created in the past two years. Software giant Oracle projects that data available to consumers will grow at a 40 per cent compound annual rate, reaching almost 45 zettabytes by 2020. With more and more businesses shifting to the cloud, consumer protection becomes increasingly important. No wonder then that concerns surrounding the privacy and safety of personal date abound.
While this trend provides opportunities for cloud computing and technology companies, one of the fastest-growing industries is cybercrime. These cyber-criminals have become an everyday part of the industry
Software companies across the world are developing ways to counteract these criminals and protect data. Several technology and software companies offer cyber security as a service.
Tesserent is the first pure play internet security company to list on the ASX. Tesserent aims to capitalise on the increasing volume of cybercrimes.
Tesserent has more than 190 clients in 11 countries and achieved total revenue of $3.7 million during the 2015financial year. The company seeks to raise up to $7m in the initial public offer scheduled to conclude in February. The proceeds will be used to repay existing debt, fund domestic and international expansion as well as for general working capital.
Although the company is profitable, its reliance on external capital has not yet been completely eliminated. Directors have not declared a dividend for the current financial year as profits will be reinvested. The internet security industry is highly competitive and there is no guarantee Tesserent will maintain or lift market share.
The offer appears well balanced in light of the revenue and earnings growth trajectory as well as management track record. The recurrent nature of its income and high degree of fixed costs provides strong operating leverage to incremental contract wins. With competition and funding being the main hurdles, IPO participants can gain exposure to the international cybersecurity market. Company: Tesserent Ltd
ASX Code: TNT
Shares on Offer: 35 million
Listing Price: $0.20
Market Capitalisation: $20.5 million
Listing Date: February 19th Simon Hermann is an analyst at wise-owl.com.
TNT Price at posting:
7.8¢ Sentiment: Buy Disclosure: Held
