Why has the Tesserent (ASX:TNT) share price rocketed 22% in a week?

a man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.a man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.a man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.

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The share price of cybersecurity provider, Tesserent Ltd (ASX: TNT) has been launching higher over the last week.

Its gains follow the release of the company’s earnings for the first half of financial year 2022 and come amid rising concerns of cyber security threats amid geopolitical uncertainties.  

At the time of writing, the Tesserent share price is 17.7 cents, 1.14% higher than its previous close.

That’s also 22% higher than where it closed last Tuesday – 14.5 cents.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 1.3%. Though, it has fallen 0.1% over the last 5 sessions.

Let’s take a look at what might be boosting the Tesserent share price lately.

What’s driving the Tesserent share price lately?

It’s been a big week for Tesserent and its share price after the company released its half-year earnings on Friday.

Over the 6 months ended 31 December, the cybersecurity and cloud services provider’s revenue surged 52% to $43.9 million. Of that, 44% was reoccurring revenue.

At the same time, its earnings before interest, tax, depreciation, and amortisation (EBITDA) more than doubled to reach $5.6 million.

The Tesserent share price surged 15% on the back of its half-year results.

Commenting on its earnings, Tesserent chair Geoff Lord said the company is “mindful of the heightened level of cyber security risk that exists for Tesserent clients” due to Russia’s invasion of Ukraine.

“We note that Tesserent has targeted capabilities to address these risks in its Cyber Enhanced Situational Awareness and Response capabilities,” Lord continued.

On that note, the Tesserent share price is gaining alongside some international defence and cybersecurity stocks.

They’re being boosted by expectations that spending in the sectors will rise as concerns of Russian cybersecurity attacks increase, according to reporting by the Guardian.

The Global X Cybersecurity EFT (NASDAQ: BUG) has risen 10.2% over the last week, with its stock currently trading at US$30.86.

Tesserent’s gains also come after the Australian Cyber Security Centre (ASCS) warned organisations to “urgently adopt an enhanced cyber security position”:

There has been a historical pattern of cyber attacks against Ukraine that have had international consequences

Malicious cyber activity could impact Australian organisations through unintended disruption or uncontained malicious cyber activities.

While the ACSC is not aware of any current or specific threats to Australian organisations, adopting an enhanced cyber security posture and increased monitoring for threats will help to reduce the impacts to Australian organisations.

The post Why has the Tesserent (ASX:TNT) share price rocketed 22% in a week? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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