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Date : 08/04/2022

Best Cybersecurity stocks on the ASX to Buy in 2022

As the world has evolved into a new normal, hackers have developed more sophisticated methods of attacking individuals and businesses worldwide. During the pandemic, Australia faced a very complex cyber threat environment. Cyberattacks are growing more frequently as more and more people rely on artificial intelligence and other IT systems.

GoDaddy, a web hosting company, recently announced a security breach impacting its WordPress managed service. 1.2 million of the company’s customers had to be alerted when it detected unauthorised access to its hosting environment from third parties. This demonstrates that even industry titans like Godaddy can fall victim to cybercrime; it is more critical to keep updated on these trends.

Almost 160 ransomware attacks were reported by the Australian Cyber Security Centre between fiscal 2020 and fiscal 2021. A handful of ASX cybersecurity companies have been working hard to develop new, effective methods of protecting the public from online fraud. In 2022, the need for these solutions is likely to expand even further.

Whitehawk LTD (ASX: WHK)

Whitehawk is a global cybersecurity firm offering cybersecurity advisory to various customers and businesses to help them protect against different online crimes and fraud. The Australia-based company was founded in 2016.

Fiscal 2021 had been very productive for the company with so many opportunities. As a result, the company invoiced around US$3.4 million in financial year 21. The above revenue includes US$1 million in unearned revenue already invoiced in 2021. Fiscal 2020 revenue was around US$1.9 million. WhiteHawk has a cash balance of US$1.35 million at the end of 2021, with no debt and no trade receivables of US928K included in the total. Expenses related to the loss on the SWAP agreement, depreciation and amortisation, and share-based payment expenditure totalled a loss of US$2.5 million after income tax.

Kicking off the Cyber Risk Radar 60-day Proof of Concept with Global Social Media Company, the company has implemented a comprehensive program in December. Apart from this, Whitehawk has recently kicked off its sales channels across key Federal Contractors as a part of the Amazon Web Services Partner Network.

Whitehawk shares are trading at AU$0.11. Whitehawk is an ASX-listed company having a market cap of AU$26.64 million. To keep on top of risk and security market innovation and automation, WhiteHawk utilises customer feedback to seamlessly improve both the Cybersecurity online Exchange and all software as a service product lines. It will provide services to companies like Microsoft Azure Cloud and Amazon Web Services (AWS) Marketplace in 2022.

whitehawk ltd stocks

archTIS Limited (ASX: AR9)

archTIS Limited (ASX: AR9) is a global developer of advanced cybersecurity software solutions listed on the Australian Stock Exchange. AR9 is a multinational technology business that specialises in protecting highly sensitive information and data. Using its extensive experience working with the federal government and the military, the company has built industry-leading information security systems for sharing and collaborating on sensitive or classified information.

According to its latest investors’ presentation, its total revenue in the first half of 2022 was $2.4M, up 118% compared to the first half of 2021 revenue of $1.1M. The company’s net loss in the first half of 2022 is $5.94 million. The 2021’s first-half net loss was around $1.43 million. To accelerate its global expansion, archTIS acquired several business assets, clients, and staff from the software division of Cipherpoint Limited and its subsidiaries for a total sum of $1.9 million. Software division intellectual property includes ‘cp.Protect,’ an advanced SharePoint on-premises data encryption solution, and ‘cp.Discover,’ a discovery and categorisation platform for large amounts of data.

AR9 shares are trading at AU$0.19 with a market cap of AU$50.16 million. Moreover, Archtis has continued to expand its business, partnering with global leaders such as Microsoft, Thales, and Raytheon. The company anticipates a steady growth rate, hitting US$10 billion in the data-centric security market by financial year 26. With early rapid sales growth to AU$2.4 million in the first half of 2022, a 118% increase from 1H 21, the company is well-positioned to capture a significant market share.

archtis limited stocks

Tesserent Ltd (ASX: TNT)

Tesserent Ltd (ASX: TNT) is the largest cybersecurity firm in Australia that operates as a global internet security-as-a-service provider to a range of customers. The Australia-based company was founded in 2015.

Tesserent continued its success in the first half of FY22, with Turnover increasing by 72 percent compared to the previous year and Operating EBITDA rising by a whopping +161%. During the six months ended December 31, 2021, the Group reported a total turnover of $62.9 million, statutory revenue of $43.9 million, normalised EBITDA of $5.6 million (before acquisition costs and share-based payment costs), and a net loss after tax of $3.3 million.

Tesserent announced a brand and business unit merger strategy on August 11, 2021, intending to drive growth in the company. As a result, TNT will go to market with a single customer-facing brand going forward.

As Australia’s leading ASX-listed cybersecurity company, Tesserent’s Board and management team focus on enhancing shareholder value. Customers’ satisfaction will be a top priority in 2022, as will EPS growth and expanding the company’s market share in already-established markets. Tesserent shares are trading at AU$0.17 with a market cap of AU$213.89 million.

tesserent ltd stocks

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