Tesserent are the largest ASX listed cyber security company targeting the AUS & NZ market. They are a full service cyber security & secure cloud service provider assisting companies from the "Boardroom to Basement".
They offer a number of solutions including: Cyber strategy & consulting, Security advisory, Technical assurance & testing, Identity access management, Managed services & monitoring, Network & cloud security, Digital forensic & incident response, Cyber education, Physical/converged security.
Management Team
In the recent market update from TNT they outlined that Co CEO Julliun Challingsworth will be stepping down as Co CEO and will be taking a position as chairman. I don't mind this as Julian seemed to be less experienced in the IT field compared to Kurt Hansen who will now be the sole CEO.
Jullian Challingsworth - 3 years & 4 months @ TNT as CEO now moving to chairman. Previously was a partner at Litmus Group (Management & Consulting)
Kurt Hansen - 2 years @ TNT as Co CEO now sole CEO. 30+ years experience working in IT industry. Previously a CEO at Pure Security who integrated 4 acquisitions whilst listed on the ASX prior to TNT takeover 2 years ago.
Although Kurt and Jullian only own about 2% of the company the board has a total of 15% interest in TNT. Enough to tick the box for me.
Looking through their glass door reviews they have a pretty average 2.1/5 star rating. 90% of the complaints are that the management are scattered/unclear on the direction, one comment was even made about terrible integration of businesses. There are only 6 reviews here and personally I only write a review when I have something bad to say so I haven't given this too much weighting but its certainly something to keep an eye on if their results start to falter.
Market Update (19th Nov 2021)
Turnover growth of 67%, EBITDA Growth of 150%, Organic Growth >40%, ARR 42%, Overall growth 150%, $19.8m Cash on hand vs $15.2m net debt.
Currently working with over 790 active customers 43 of which are in the ASX 100.
Their September quarter was weaker than Q4 FY21 but they had outlined this in the FY21 report due to the seasonality in receipts from customers. Companies love to spend their budgets come EOFY.
TNT have given the below short term targets (I couldn't find reference to what "short term" meant so unsure if this is FY22 or they've just plucked these numbers out a hat)
Turnover of $200m, EBITDA margin of 15%, ARR 50%
To compare to FY 21: Turnover $96.7m, 8% EBITDA margin, ARR 42%
TNT are still actively looking to acquire new bolt on's which improve EBITDA margins & align with the company's future goals.
A few yellow flags to keep an eye on but given the companies execution thus far and continued organic growth I'm happy to continue holding.
