Up 20% on strong cybersecurity sales figuresASX:WHK Apr 29, 2022
Our cybersecurity investment, WhiteHawk (ASX:WHK), released its quarterly report today and with the stock up ~20% this afternoon, it seems the market liked what it contained.
WHK reported that it invoiced US$1.8M during the quarter — a 4X increase on the US$442k invoiced in the same period in 2021.
The company collected US$2.2M relating to sales receipt from customers, and was owed US$505K in receivables as of 31 March.
This solid result saw WHK end the first quarter with a cash position of US$2.1M and no debt.
Its year on year revenue continued to grow to US$2.3M for 2021 up from US$1.9M for 2020, while it has put in place Master Service Agreements (MSA), Proof Of Concepts (POCs) and new strategic opportunities to support ongoing revenue growth.
In our 2022 WHK Investment Memo our fourth key objective was to see WHK double its revenue in its next annual report. Being US-based, WHK reports on a calendar year basis so with US$2.1M in revenue in this first quarter we may see WHK reach our targeted US$4.6M top line revenue figure if it continues along this path.
WHK has a number of high level objectives relating to product improvement, growing its reach across new and existing pipelines, and further advancing and executing on current contracts.
In the near term, WHK has four clear objectives:
- Close on three current Cyber Risk Radar & Program contract proposals, based upon successful Proofs of Concept (POC).
- Advance Dun & Bradstreet and Amazon Web Services sales to US Federal Systems Integrators and US federal and commercial sectors – contracting Cyber Compliance and Cyber Risk Scorecard subscriptions respectively.
- Kick-off Cyber Risk PaaS & EMBED Cyber Risk Scorecard sales to one of the current financial sector clients in the pipeline.
- Maximize ceiling on current government contracts and respond with Defense Industrial Partners on two known 2022 Cyber-Supply Chain Risk Management Requests For Proposal.
Newsflow from the company has been fairly quiet for some time now, so we await confirmation that the team is progressing partnerships and contracts behind the scenes.
We do know that WHK’s large, sticky, and often sensitive contracts take some time to finalise, but are well worth the effort once they are locked away.
For all of the objectives that we set for WHK in 2022 see our WHK Investment Memo.