Tesserent (ASX:TNT) grows across key metrics

• Tesserent (TNT) records growth across many key metrics as it prepares to take advantage of government funding
• Excluding acquisitions, the company has seen organic growth of 36 per cent for the third quarter and the year-to-date
• Despite the positive growth, the company still recorded cash outflows of $1.12 million, attributed to an increase in debtors and an unbilled work in progress balance
• At the end of the period, TNT finished with $9.96 million in total available funding
• Shares are trading down 2.78 per cent to trade at 17.5 cents

Cybersecurity and cloud services provider, Tesserent (TNT) has recorded growth across many key metrics as it prepares to take advantage of government funding.

Excluding acquisitions, the company has seen organic growth of 36 per cent for the third quarter and the year-to-date.

Annual recurring revenue hit 45 per cent of annual turnover while operating EBITDA climbed 130 per cent from the previous corresponding period (pcp) to $3.9 million.

However, despite the positive growth, the company still recorded cash outflows of $1.12 million. This is attributed to an increase in debtors and an unbilled work in progress balance. The cash flow balance still remains positive for the year-to-date.

It recorded customer receipts of $37.97 million in the quarter, but it wasn’t enough to cover its staffing expenses as well as manufacturing and operating costs.

The company secured additional key cyber talent and integrated the acquisitions of Claricent and Pearson into its government advisory arm of business.

Looking ahead, TNT expects it will benefit from the Australian Government’s 2022-23 budget, which will spend $9.9 billion on cybersecurity over the next decade.

The company finished the period with $9.96 million in total available funding.

Shares were trading down 2.78 per cent to trade at 17.5 cents at 11:29 am AEST.